Shipping and Warehousing Prices Soar as Supply Chain Chaos Lashes Economy

The costs of moving goods around the United States has soared over the past year, adding to the inflationary pressures that have sent consumer prices skyrocketing, data from the Department of Labor showed Thursday.

Businesses that arrange for the transportation of freight and cargo raised their prices 10.9 percent in September. Compared with a year ago, these logistics businesses now charge 71.77 percent more.

The price of transportation of finished products to households and businesses by truck rose 0.8 percent in September and is up 15 percent compared with one year ago, according to the Department of Labor’s Producer Price Index data.

Rail transportation of goods for final demand costs 6.8 percent more than a year ago after rising 0.4 percent in September. Air freight costs rose 2.3 percent in September and are now up 5.2 percent year over year.

Courrier, messenger, and postal service prices rose 2.6 percent in September and are now up 7.2 percent annually.

The Producer Price Index looks at inflation from the point of view of businesses, measuring prices received by sellers. In addition to “final demand” prices of goods and services sold to households, businesses, government, and as exports, PPI tracks prices paid higher up in the supply chain, measuring costs paid by businesses for components, materials, and services that go into products and services they sell to consumers and other businesses. These so-called “intermediate demand” prices show even more inflation right now. – READ MORE