Commerce Express Weekly Road Map:
June 25th, 2024
Keeping you informed on the latest news/insights in our industry.
Tropical Storm, Atlantic Hurricane Season is Here
NOAA anticipates an above -average Atlantic hurricane season, they announced last month, driven by several factors.
Those factors include unusually warm ocean temperatures in the Atlantic, the emergence of La Nina conditions in the Pacific (which influence global weather patterns), decreased Atlantic trade winds (blowing from East to West across the Atlantic), and lower wind shear (a change in wind speed or direction over a short distance in the atmosphere). These conditions collectively support the formation of tropical storms.
NOAA, say with 70% confidence, forecast 17-25 named storms and of those 8-13 are predicted to become hurricanes – which is when winds of 74 mph or more occur. They also forecast 4-7 to become major hurricanes (category 3,4,5 – with wind 111 mph or higher).
In fact, one of those forecasted storms recently occurred this past week in parts of South Texas and Northern Mexico. Tropical Storm Alberto caused heavy flooding and power outages to many areas, creating impacts to freight.
Commerce Corner:
If you have any additional questions or concerns regarding hurricane season, reach out to our team today.
Commerce Blog
While government officials have temporarily curtailed a work stoppage from occurring on Canada’s railroad network, unionized rail workers are still polishing their pickets as negotiations for a labor contract with their railroad-employers stall.
Rates and Capacity: Produce season continues to influence the overall truckload market in the U.S. Southeast, increasing rates and impacting capacity.
Diesel Update: As of Jun. 24, the average U.S per-gallon price of diesel was $3.769, an increase of three cents from Jun.17, per U.S. EIA. Diesel prices are highest in California where the latest average was reported as $4.913 per gallon.
LTL Shipping: The less-than-truckload market is footing after nearly a year removed from last year’s closure of LTL carrier Yellow Corp. Formerly one of the sector’s largest carriers, Yellow’s departure left a volume vacuum in the market as remaining carriers and former Yellow customers (shippers) transitioned to the major change.
Intermodal: The threat of a rail strike across Canada’s Class I networks remain a possibility as early as July, an event that could halt the country’s freight rail movement, including to and from the U.S. For the latest on the situation.
Holiday Impact: Expect an increase in demand in the days leading to July 4 (Fourth of July holiday) as shippers push to get orders out before they and/or their transportation providers temporarily close or limit operations. Truckload rates around the holiday are typically at premium levels.
What makes Commerce Express stand out from the rest? Let me introduce you to our ENABLE Protocol.
Our ENABLE Protocol allows our customers to be ABLE to Analyze, create a strategic Blueprint, Leverage, and Execute their current shipping process to improve their supply chain and ENABLE quantifiable results.
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