Shipping Industry’s Surprising Overcapacity


Shipping services in Bolingbrook, Illinois, and areas far beyond have been seeing an unexpected phenomenon recently—overcapacity. Considering the recent e-commerce boom that has surged global shipping demands, it’s a surprising turn.

On the contrary, a noticeable overcapacity in the shipping sector has been observed. Demand for freight in Illinois, and generally in the U.S., significantly dropped, resulting in an enormous number of idle containers stacked up at ports, particularly in China. Freight rates from China to the West Coast plummeted as much as 90%, reflecting the stark reality of the situation.

A vital part of the equation is intermodal freight transport, which counts for a substantial part of the logistics industry. It combines different modes of transport, like rail, truck, and ship, to move goods using a single delivery system, optimizing resources.

So, wondering what this overcapacity means for your cargo? Essentially, it indicates hundreds of thousands of square feet of unused transit space. It shows that more goods could be transported simultaneously, potentially lowering waiting times and costs, as shipping companies are eager to fill up these vacant spaces. However, it’s crucial to be cautious as the promise of extra space could lead to its own complications.

The situation highlights the versatility of trucking services. As a flexible and dynamic mode of transporting goods, trucking services can adapt more readily to fluctuating market situations, offering an alternative or supplement to sea and rail freight.

So to speak, the shipping industry’s surprising overcapacity highlights the essential role that efficient logistics and transport play in our global economy. Whatever the situation, let’s remember that strong collaboration is key to tackling shared industry challenges. Look to a trusted entity such as UKA TRANSPORTATION LLC for your logistics needs.

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