Commerce Express Weekly Road Map:
December 17th, 2024
Keeping you informed on the latest news/insights in our industry.
Impact Winter Weather has on Truckers, Shippers/Consumers
In the trucking industry and beyond, winter weather can create a variety of challenges.
A key impact winter weather has on truckers is making sure their trucks are winterized for the harsh conditions. This can include chaining up their tires, conducting a thorough pre/post trip inspection, checking brake systems, and ensuring they have sufficient food, water, and an emergency kit. Truckers must also stay aware about their routes and current road conditions, adjusting their plans if winter weather is expected.
As highlighted above, weather events can lead to fluctuations in rates and demand, causing shippers to face higher rates and truckers to be in higher demand. This also affects consumers. We’ve all been there—waiting for a package to arrive on the scheduled date, only to see the dreaded message: “We’re sorry, your package has been delayed until tomorrow” or another unexpected date.
Whether you’re a shipper anxiously awaiting a delivery at your warehouse, a trucker navigating winter driving conditions, or a consumer hoping your package makes it to your doorstep on its scheduled delivery date, we all understand the frustration winter weather can have on the supply chain.
Commerce Blog
In the modern day, all marketplaces are vulnerable to this phenomenon, including the trucking industry. Since the days when the first fleets of commercial trucks hit the roads, cargo theft has afflicted stakeholders: carriers; brokers; shippers; and government agencies.
However, gone are the days of crowbars and broken padlocks. The advent of more technologically advanced, and subsequently dependent, supply chains has led to an evolution in the execution of cargo theft. Today, instances of it are smarter, faster, more cunning, more deceiving, and more prevalent than any other period in trucking’s history.
Diesel Update: The average price of diesel increased 3.6 cents a gallon, putting the average price of diesel at $3.494 a gallon, according to the U.S. EIA.
Toll Rates: Several U.S. states are set to see toll price hikes next year. As reported by Transport Topics, tolls in Oklahoma, Ohio, Pennsylvania, New Jersey, and New York will increase by 3-15% for both passenger and commercial vehicles. Additionally, starting July 6, 2025, the Port Authority of New York and New Jersey will discontinue its truck volume discount program. This means that companies with trucks making more than 100 off-peak trips per month will no longer receive the 10% discount.
Furthermore, an appeals court in Rhode Island ruled that the RhodeWorks toll program was only unconstitutional for its toll cap, but the overall system can remain in place, FleetOwner reports. This allows the state to continue to run tolling programs that have a large focus on Class 8 tractor-trailers. Read more about Rhode Island’s tolling plan.
Truckload Rates/Capacity: Volumes throughout various mile ranges are continuing to recover, post-Thanksgiving holiday. According to data from Freightwaves, local haul volumes have rose by 3.12% compared to last year, while long-haul volumes have decreased by almost 10% year-over-year.
Throughout some of the largest domestic markets, many have seen increases in the past week. According to SONAR data from Freightwaves, here’s a break down on tender volumes based on the U.S. region:
Starting with the East Coast, Atlanta tender volumes rose by more than 10% week-over-week, while in Harrisburg, volumes saw an 8.1% increase. On the West Coast, Los Angeles tender volumes rose 9.43% week-over-week, while long-haul volumes increased by 5.76%. Over in the Midwest, Dallas tender volumes grew by 9% but tender volumes from Chicago saw a decrease of 12.6% week-over-week.
USEC/USGC Labor Negotiations: As a reminder, the current master contract between the ILA and USMX expires in less than a month (January 15th).
Truck Parking: The state of Connecticut has put forth $31 million to invest in truck parking throughout the state. Per the CTDOT, five key locations will see this funding go towards more truck parking spaces.
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