Commerce Express Weekly Road Map:
January 9th, 2024
Keeping you informed on the latest news/insights in our industry.
Will Red Sea Challenges Impact Domestic Shipments?
Many have been aware of the ongoing challenges and conflict in the Red Sea, some may wonder if those challenges will have an impact on domestic shipping.
While it is hard to say how, if any, impact this has had (or will have) on domestic shipping, we are aware that the USWC has seen and may continue to see rate increases due to shippers feeling more “incentivized” to ship out West than to the East/Gulf Coasts, who are facing challenges due to the Panama Canal and Red Sea.
If you are concerned on how this may impact your domestic shipments, please feel free to reach out to us.
Trucking –
- As of January 8th, the national average price of diesel is $3.828.
- Seeing a 4.8 cent decrease compared to the week prior.
- Port of Los Angeles plans to add a near-dock chassis facility and container storage yard
- The facility will be used for storing, maintaining and repairing chassis. Plus, a temporary storage yard for empty containers.
Rail –
- Rail capacity continues to remain plentiful, and rail transits are continuing to be at five-year averages, some even higher.
- Union Pacific is expanding their on-dock rail service at Port Houston – including access to four more inland markets.
Cross-Border –
Mexico:
- The Mexican Tax Authority will be enforcing the new Carta Porte compliance rules starting January 1st. This is for all modes of transportation on any cross-border and/or Mexico domestic shipments.
- Additionally starting January 15th, hazardous material shipments will be required to provide Mexico Hazardous Packaging Code and Mexico Unit Packaging Code, BNSF Railway said in a statement.
Pennsylvania Turnpike Will See Toll Increases Go In Effect
The Pennsylvania Turnpike Commission approved a 5 percent increase for E-ZPass and Toll By Plate customers, last July, and is expected to go into effect starting Sunday January 7th.
As FleetOwner reports, the most common toll for a Class 8 tractor-trailer will increase from $14.40 to $15.20 for E-ZPass and $29.40 to $30.90 for Toll By Plate.
The Commission states their per-mill toll rates are lower than the national toll averages and are in the midrange of the 47 toll roads in the U.S.
New Law May Accelerate Texas Bridge Cargo Projects
A new law took effect that will “speed up” the federal approval process that is needed to expedite several bridge projects on the Texas-Mexico border.
In this new law, the State Department has 60 days to make their recommendation to the President on whether a permit should be approved. Then, the President has 60 days to approve the permit request, if no response occurs, the permit is automatically approved.
Furthermore, this bill, as Freightwaves reports, which has a maximum 120-day timeline for the President to reach a decision on approving a permit, was signed into law by President Biden on December 22nd.
The original process would have required an environmental review, which had the potential to take several years to get approved.
The goal for these new projects is to decrease wait time for cargo trucks that trek along the bridges.
Commerce Blog
Being smack dab in the country means the city is, at most, four days out from major U.S. markets. All while, access to the Mississippi River, Class I railroad networks, and interstates presents shippers multiple options with moving freight.
Already renowned as one of the country’s top inland ports, St. Louis is not standing pat. The city’s regional transportation systems are undergoing ever-changing improvement projects. City officials are touting the collaborative efforts and infrastructure advancements made in 2023.
BNSF Production/Departure Performance Records at Two Facilities
BNSF’s Chicago based Intermodal Terminal Corwith saw an all-time production performance record, marking a 25 percent increase in intermodal traffic compared to previous months at the terminal, Railway Age notes.
Chicago brings in a significant amount of intermodal volume, due to the city being one of the biggest connection points in the U.S.
Additionally, BNSF’s Los Angeles Hobart Intermodal Facilities saw an all-time departure record, leading to the facility’s “most efficient year in a decade,” BNSF said in a statement.
Total Weekly Rail Traffic for the Week Ending December 30th, 2023
- For the week ending December 30th, total U.S. weekly rail traffic was 370,800 carloads and intermodal units – up 3.4 percent compared to the same time last year, per AAR data.
- U.S. weekly intermodal volume was 188,738 containers and trailers – up 2.7 percent.
- Chemicals, farm products (excluding grain and food), and petroleum and petroleum products all saw increases. While motor vehicles and parts, miscellaneous carloads, and non-metallic minerals all saw decreases.
- For the first 52 weeks of last year, North American rail volume was 34,105,519 carloads and intermodal units, down 2.1 percent compared to 2022.
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