Chassis shortage and reduced trucking capacity in North America

Archive note — October 2020: The congestion, chassis availability, trucking rates and COVID-era measures discussed below were observed in 2020. This article is retained as a historical market report. For a current shipment, check the specific port, terminal, carrier and trucking provider rather than using the conditions or forecasts quoted here.

In October 2020, North American container movements faced reduced trucking availability in some locations. At the time, rapid changes in port and rail volumes, COVID-era operating measures and longer container turnaround times contributed to the difficulties described in this report.

“We are seeing trends that truckers are booking up and availability varies between 2-7 days depending on where in the country we are doing a load. Congestion at the ports along with chassis shortages is playing a major factor as drivers often have to wait in line at the ports to pick up containers, which sometimes means that they can’t make their schedule for the day, starting a domino effect. ”

— Klaus Lysdal, Vice President of Operations, iContainers

Chassis availability was another concern reported in October 2020. Limited equipment in some locations complicated container pickups and deliveries. The original expectation about whether conditions would improve “over the next few weeks” applied only to that period.

The report also described strong trucking demand and elevated spot-market rates during the pandemic period. Those observations should not be used as a current rate benchmark.

Right now there is a high demand, which drives rate levels. As long as congestion issues and shortages continue rates are not likely to come down. To be fair, it not like we are seeing price gouging or anything like that. Just a higher demand. But whenever that tide turns again and the supply versus demand changes again that will reflect in rates naturally. ”

— Klaus Lysdal, Vice President of Operations, iContainers