Commerce Express Weekly Road Map:
June 11th, 2024
Keeping you informed on the latest news/insights in our industry.
Domestic Market Updates -
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Rates and Capacity: it’s produce season, which means rates are increasing, especially in the Southeast, impacting capacity.
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Diesel update: As of June 10th, the average price of diesel was $3.658 a gallon. Seeing a 6.8 cent decrease from last week, per the EIA.
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Equipment: Class 8 net truck orders see a robust May, preliminary data shows. Data from both FTR and ACT Research show orders up both month-over-month and year-over-year.
Specifically, FTR data shows class 8 net orders at 18,900 units in May, an increase of 25% from April and a 37% increase y-o-y. While ACT data shows 23,200 units in May, an increase of 46% from April and a 49% increase y-o-y.
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Regulation: The proposed congestion fee toll in New York, that was set to go into effect at the end of June, has been paused, per NY governor’s orders. Check out our blog about the details of this once proposed plan.
Cross-Border: Mexico was the Top U.S. Trading Partner in April
In the month of April, data from the U.S. Census Bureau has Mexico as the top U.S. trade partner, with $72.5 billion in total trade. Imports saw $43.1 billion while exports saw $29.4 billion – Canada did top Mexico in the April exports category.
Nearshoring has become a popular topic as some U.S. companies have started or have been considering relocating their production and manufacturing operations to a country closer to their shipper.
Do you ship to/from Mexico? Is this something your company has considered? Click the button below if you’re interested.
Baltimore Bridge: Main Shipping Channel Fully Open
The U.S. Army Corps of Engineers announced yesterday the main shipping channel through the Port of Baltimore is fully open. Removal of steel and surveying at and below the 50-foot mudline will continue, to make sure future dredging projects are not impacted, per the statement.
This is welcome news to shippers and industry stakeholders alike. Eleven weeks ago, the unfortunate collapse of the Baltimore Bridge caused a domino effect all throughout the region and beyond.
Commerce Blog
Intriguing data points in the trucking industry saw some ups and downs in May. On the one hand, orders for heavy-duty trucks saw an increase, while on the other, industry job growth over the 30-day period stalled.
Update: Labor Negotiations in Canada
Couple labor negotiation situations happening out in Canada. Here’s what we know (so far) about each of these situations.
Canada border agent negotiations:
Near the end of May the union voted enormously to authorize a strike, which could have started as early as last Friday (June 6th). However, no strike has been issued as of yet as the union and the Canadian government continue talks, until at last the middle of this week, per Supply Chain Dive.
It should also be noted that these border agents are essential workers, meaning the Canada border would not be closed, even if a strike takes place. However, productivity could decline, which would create processing and traffic delays at various entry points, for those transporting freight between the U.S. and Canada.
Canada rail union negotiations:
Negotiations still continue as no tentative agreement has been reached for a new contract involving rail unions at CN and CPKC.
Last week the union and CN Railway were scheduled to continue bargaining talks. Those talks unfortunately fell apart after the first day of the meeting, per a statement from the union, due to the parties not seeing “eye-to-eye.”
As a reminder, in early May the rail union voted to authorize a strike, the earliest (at that time) a strike could have occurred was May 22nd. However, the Canada Industrial Relations Board (CIRB) was requested to review the impact on public safety if a strike occurred. The investigation is continuing, which means no strike or worker lockouts can occur until a decision is made.
U.S. Rail Traffic From the Week Ending June 1st, 2024:
- Weekly data shows U.S. rail traffic at 450,077 carloads and intermodal units – seeing a 2.4% increase from the same time last year, per AAR data.
- Intermodal volume in the U.S. saw an 10.7% increase (243,841 containers and trailers) from the same period last year.
- Commodities including grain, farm products (excluding grain and food), and petroleum and petroleum products all saw increases. While coal, non-metallic minerals and miscellaneous carloads all saw decreases.
- In the first 22 weeks of this year, rail volume in North America was up 2% (14,459,420 carloads and intermodal units) when compared to last year.
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