Chassis shortage and reduced trucking capacity in North America

The number of accessible truckers in North America to handle container movements has decreased during the past months due to a combination of circumstances. These include a quick rebound in volume at ports and rail terminals, drivers exiting the industry because of the COVID-19 situation, and a slowdown in loading and unloading containers for security measures.

“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

Another factor playing a significant role in this logistic congestion is the lack of chassis. In the United States, this is causing delays in picking-up and delivering in major cities like Chicago or LA, and there is no forecast of an improvement over the next few weeks.

Rates in the dry van spot market have risen to their highest levels from the past 2 years as e-commerce is intensifying during the pandemic, even for furniture or appliances. Some drivers are earning the highest per-mile price in history.

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