Domestic Market Updates –
U.S. Labor Uncertainty: The ILA and USMX are reportedly set to resume negotiations Tuesday, January 7th, as the current Master Contract is set to expire next week, January 15th. U.S. East/Gulf Coast dockworkers are expected to go on strike if a tentative contract is not reached by January 15th or an extension is made.
Weather: Significant winter weather conditions have made their way to regions in the U.S., making traffic potentially difficult for some truckers.
Ohio Valley to the mid-Atlantic: A significant winter storm, including snow, ice and freezing rain, made its way starting yesterday (January 6th). This region is expected to get hit by a winter storm again, later this week Thursday/into Friday.
Down south: On Thursday and into early Friday morning, parts of the southern Plains (Texas, Oklahoma, etc..), is expected to receive rain, snow, ice, and cold temps.
As a reminder – winter weather can create disruptions for truckers and shippers of domestic freight. Be on the lookout for possible delays throughout this week, with possibly fluctuations in rates/demand.
Diesel Update: The average price of diesel increased 5.8 cents a gallon, putting the average price of diesel at $3.561 a gallon, according to the U.S. EIA.
Truckload Rates & Capacity: FreightWaves SONAR data reveals a notable surge in the dry van market over the past week, although it remains lower on a year-over-year basis. In contrast, the reefer market continues to show robust strength, with both weekly volumes and year-over-year figures reflecting significant increases. Furthermore, high-demand markets like Atlanta and Dallas are experiencing a return of capacity.
Infrastructure: Reopening on Interstate 40 along the Pigeon River Gorge have unfortunately hit a roadblock. With reopening originally projected to happen in early January, it is now being delayed, due to a chunk of asphalt falling from an eastbound lane of I-40. Damage will need to be properly assessed before the area is safe for drivers to use the narrow, two lane.
Cross-Border Rail: A new railway bridge (Patrick J. Ottensmeyer International Railway Bridge) connecting Texas to Mexico has officially opened. Construction began in fall 2022 and reached completion mid-December this year. Per Transport Topics, freight capacity is expected to double along the Laredo and Nuevo Laredo rail route.
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