To help you understand what's going on with the global supply chain and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
The near-term outlook for freight shipping costs: mixed. For trucking, expect a 5%-10% increase in medium-distance rates, due to the bankruptcy of venerable Yellow Trucking, the fifth-largest firm in the less-than-truckload sector. The loss of that capacity figures to halt and even reverse the recent slide in rates. Dry-van rates are off 22% vs a year ago. Flatbed rates: down 8% in the past two months.
Air cargo costs should come down soon, due to declining cargo volumes, now that ocean shipping bottlenecks have mostly eased. The cost of shipping by air from Europe to the U.S. is already back to pre-pandemic levels. China-to-U.S. rates are still a third above the pre-pandemic level, due to some expensive contracts that were signed during the peak of the air shipping boom. Those will expire shortly.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Watch out for a jump in lumber prices. The bad wildfire season in Canada, which supplies 80% of U.S. lumber imports, has burned 9.2 million hectares of forest, with another couple of months to go before cooler and wetter weather ends the danger.
Lumber prices are down recently due to softer home-building activity in early summer. But with inventories of existing homes for sale so thin, construction should pick up. The combination of rising demand and reduced supply could up lumber prices by 20%.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
-
Mortgage Demand Ticks Up for First Time in 3 Weeks
Weekly mortgage applications improve despite the 30-year fixed rate edging back up to its highest level in 4 weeks, economist says.
-
How To Get the Best Savings Account Bonuses
By opening the right savings account today, you could be maximizing your earnings through both compound interest and cash bonuses.
-
Investments In U.S.-Made Drone Technology Are Gaining Strength — The Kiplinger Letter
The Kiplinger Letter The U.S.-Made drone aircraft, software sector has been boosted by a crackdown on Chinese drones amid security concerns.
-
Auto Industry’s Electric Transition Sparks Tension With Autoworkers: The Kiplinger Letter
The Kiplinger Letter DoE announces $12 billion to support factory retrofits, which autoworkers fear may mean the end of numerous auto manufacturing jobs.
-
Will the U.S. Dodge a Recession?: Kiplinger Economic Forecasts
Kiplinger Economic Forecasts The labor market is healthy enough to dodge a recession, even though job growth is lethargic.
-
Don't Overlook Tax on Crypto Staking Rewards: Kiplinger Tax Letter
Tax Letter The IRS has issued guidance on crypto staking rewards, but broker reporting on digital asset sales won't start until 2025.
-
New Regs Crackdown on Incandescent Bulbs and CTC Exposure: Kiplinger Forecasts
Economic Forecasts The EPA and Dept. of Energy are planning to enforce rules on hazardous CTC and inefficient incandescent light bulbs.
-
Falling Prices in China Could Be a Boon For the U.S.: Kiplinger Economic Forecasts
Economic Forecasts Falling prices in China could be a boon for the U.S. as the country's weakened economy shows no clear signs of improvement.
-
Domestic Airfare Is Still Cheaper Than Pre-Pandemic Prices: Kiplinger Economic Forecasts
Economic Forecasts Although domestic airfare is cheaper, some international flights are still more expensive than usual.
-
Five Reasons Your Healthcare Costs Will Ease: Kiplinger Economic Forecasts
Economic Forecasts From technical advancements to cheaper drugs, healthcare cost relief is coming.
