The surging spot shipping rates of the past year are set to translate into steep price increases in 2022, the Wall Street Journal writes, as freight carriers and other operators across supply chains flex their leverage in new contract negotiations. Experts say shipping demand still far outweighs tight capacity across most transportation and logistics markets. Executives say container shipping rates could double the level of annual agreements that were struck in early 2021, and some trucking companies are asking for and getting double-digit increases in contract pricing.
Operators say their expenses are also rising, including higher labor costs as they raise wages to retain workers. Big retailers and manufacturers may have the scale to minimize some cost increases, but smaller shippers likely have little room to shop around.
