There is a cowboy saying that goes something like this: “Every day is a good day when you ride.” 2021 gave us a lot of good days with 2022 shaping up to be much of the same. The Rockfarm truckload index hit a high mark of $3.69 per mile rate in December and shows no sign of slowing down as we work our way through the start of 2022. The Rockfarm Market indexes in the head haul lanes all show reached new heights in December and into January, illustrating a lot of constraints in truck capacity. Fuel prices add to the ongoing truck capacity challenges. Some analysts are predicting $100 per barrel pricing in 2022, with oil now above $80 per barrel. Demand and supply challenges are leading the charge to push oil above the $100 mark. According to a recent article by Irina Slav, a writer for Oilprice.com, the
defining moment for higher oil prices will be when OPEC brings its spare capacity online. It will mark a watershed moment and trigger the most bullish market for decades.
Where does this leave us? There is no sign of turning the corner and seeing rate stabilization in the near future. Strategic decision-making focused on when to lock in rates and begin deeper sourcing of additional carrier capacity has become a key initiative for shippers as we start our next ride.
Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”
PORT OF LA OPERATIONS REPORT (Friday, January 14, 2022)
Holman, J. (2022 January) US Online Holiday Spending Grows at Slowest Rate in Seven Years
Wienberg, C. (2022 January) Maersk Overtaken as World’s No. 1 Shipping Line by MSC
Mongelluzzo, B. (2022 January). Outlook 2022: West Coast ports face continued congestion, vessel backlogs
The Maritime Executive. (2022 January). Maersk Reports 2021 Earning Will Exceed Forecasts by $1 to $2 Billion
The Maritime Executive (2022 January). Shell Signs Contract for Green Hydrogen Plant in Rotterdam
Hellenic Shipping News. (2022 January). U.S. drillers add most oil and gas rigs in a week since April – Baker Hughes
census.gov (2022 January). Manufacturing and trade inventories and sales, November 2021
Slav, I. (2022 January). A Watershed Moment That Could Send Oil Prices to $100
Sharkey, G. (2022 January). After record-breaking Q4, project44 begins 2022 with $2.4B valuation
Brown, S. (2019 August). Supply Chain Visibility boosts consumer trust, and even sales