LM Viewpoint: 2022 Freight Rates Heading Up, Up and Away.

In following tradition, this marks the 17th year that Logistics Management has produced our Rate Outlook print feature and follow-up webcast (Jan. 27) combination. Our analytics have shown that this approach continues to yield our most-read magazine feature and our best-attended webcast of the year.

And over that time, we’ve never wavered from the simple premise: We lead off the January issue with a snapshot of the state of the global economy and fuel costs and then examine how those realities will affect freight rates and capacity levels across each mode of transportation over the coming year. The effort gives shippers a clear, 30,000-foot view of where freight costs are heading and why.

For the past 13 years, executive editor Patrick Burnson has taken the lead, and I’m happy to report that he’s done the same again this year. Over the course of the past two months, he’s surrounded himself with some of the leading economic, fuel and freight transportation analysts in the domestics and global markets—many of our top sources that we use over the course of our reporting year.

Following the many conversations, Burnson gathered their feedback, boiled it down and produced our Annual Rate Outlook cover story that begins on page 20. “While this is a rather daunting reporting task,” he says, “crafting this year’s forecast was quite straightforward, and certainly shouldn’t come as a surprise to anyone.”

Indeed, when you add up all of the elements on the seemingly interminable list of nagging supply chain issues—rising demand, tight capacity, shrinking labor pool, unsteady fuel costs, port slowdowns—it only adds up to a single sum: steadily rising rates.

“Every discussion led to the same conclusion,” says Burnson. “Across all modes, rates will be escalating. The carriers are now firmly in control, and don’t think for a moment that they won’t be exercising their leverage. And with no hint of hope on an improved labor situation, it’s clear that logistics managers will be mired in the same situation through 2022.”

Again, no surprises here. However, as with most difficult situations, there is a silver lining. As Burnson is quick to point out, the current situation has certainly helped to push logistics management into the upper echelon of consideration across every industry.

“Due to these challenges, a new, more progressive mindset is evolving to help transform our freight transport culture,” Burnson says. “As we’ve been following over the past year, logistics managers are now being considered the source of strategic innovation and an essential part of how organizations are competing and preparing for the next disruption.”

And after you digest the print version of the rate forecast, don’t forget to mark your calendar to join our 2022 Rate Outlook webcast taking place on Thurs., January 27.

Bon voyage: And while Patrick is traditionally the host of that webcast event, I’ll be stepping in as master of ceremonies this year. In fact, this is the last issue Patrick will be working on for us, as he has decided to step into retirement.

This marks the conclusion of an extensive 36-year B2B editorial career, and the end of a terrific 13-year tour of duty covering the global logistics and supply chain markets with us here at Peerless Media on Logistics Management and Supply Chain Management Review.

His depth of knowledge of the ocean cargo, trade and ports markets remains unparalleled, and his professional and gracious manner will never be forgotten by his colleagues and contacts in the markets he’s covered here in the United States and around the world.