Did Frieght Traffic Slip This Past Year?
Large ship carrying cargo.
Many companies are still experiencing shipping issues since the 2019 Pandemic. Although some shipping companies use different shipping services, each service operates at a different rate. This is especially true for freight shipping services. Last year, freight traffic experience reduced rates, which disrupted other forms of traffic and relayed the transportation of thousands of shipments. The current concern is whether this traffic issue will continue in 2023 and how it will affect the future of many businesses.
Did Freight Traffic Slip This Past Year?
According to the Association of American Railroads, the amount of cargo handled by freight railroads last year was approximately 2.8% lower than 2021. Carload and intermodal rail traffic also suffered. Experts notice the reported cargo volume did not affect the traffic rates at all. Chemicals, grains, and non-metallic minerals being transported caused traffic speeds to remain the same. If traffic was doing fine in 2021 shortly after the Pandemic crisis, why then did freight traffic fall in 2022?
What Is Going On With Freight Traffic?
According to the truckload traffic data chart, it’s uncertain the exact factors that contributed to slower traffic volumes in 2022. However, experts believe the issue is not only from worker shortages or issues with supply and demand, but also from other factors. Some of these factors include harvest grain levels, gas prices, and, of course, inflation. Many people wonder why inflation continues to rise if the supply chain appears more level. While experts can’t say for certain, they are confident that inflation fears are interfering with freight traffic.
Will Freight Traffic Issues Continue?
As non-service factors continue to increase and decrease, freight traffic may continue to experience a slip in the coming year. Experts also believe that because railroads are constantly changing, freight traffic experienced a dramatic shift last year. Coal carloads increased because of natural gas prices, but the rise in natural gas negatively affected chemical rails. Grain carloads in 2022 increased compared to 2021 and intermodal rail volumes decreased from the previous year.
Labor issues were also a problem between the U.S. and Canada in 2022 as workers unionized over better pay and benefits. This issue definitely contributed to the reduced freight traffic. However, since the issue has been resolved and management worked to improve conditions, freight traffic issues may ease in the coming year. It’s important for businesses to remain aware of the freight shipping issues, especially businesses with time critical shipping needs. Although railroads have shown they’re willing to improve operations, non-service factors may continue to affect operations beyond their control.
Partnering With Trifecta Transport Can Help Your Business
If you operate a business that heavily relies on shipping, you understand the frustration of transporting and receiving goods on time. Partnering with a company like Trifecta Transport can help you manage your shipping needs and ensure your goods arrive on time. You don’t have to worry about time critical logistics because we work out the details for you.
We are a dedicated team of professionals who work with many businesses and help them navigate the shipping issues of today. Our team helps you find the right shipping method for your business needs, so you can give your customers peace of mind and increase your clientele. Whether you need to ship by ground or air, our team has you covered. We will find the best method that works with your business budget.
Contact Us For A Quote Today
The team at Trifecta Transport is ready to help you navigate the logistics of your business and ensure smoother operations for your company. Contact us today for a quote on our services.
