Newsletter - May
Market Updates
Shipping/Container rates continue to escalate and are expected go higher based on spot market rates, availability of slots on vessels, and insatiable demand for ocean transport. Spot rates are extremely volatile and increases are announced on a daily basis.
-Hapag-Lloyd rocks already hard-hit transpac shippers with a $3,000 GRI - The Loadstar
TiO2 supply restrictions have been seen from all manufacturers due to increased demand and the ongoing issues with ocean freight availability.
Significant increases in various commodities are continuing to drive key feed stocks higher supporting inflationary concerns (see Commodity report link below; e.g. Crude Oil, Soybean Oil, Palm Oil, Zinc, Methanol, Beef Tallow, Coconut Oil, Copper)
Demand for building materials continues to impact lumber rates and availability with increases as high as 30-40% for reconditioned shipping pallets. Contributing effects are increases in fasteners (steel), availability of lumber from outside the United States, and reduction in saw-mill capacity during COVID.
-Producer Price Index by Commodity: Lumber and Wood Products: Wood Pallets and Pallet Containers, Wood and Metal Combination (WPU08410101) | FRED | St. Louis Fed (stlouisfed.org)