Commerce Express Weekly Road Map:
May 14th, 2024
Keeping you informed on the latest news/insights in our industry.
Domestic Market Updates –
- Diesel update: As of May 14th, the average price of diesel was $3.848 a gallon. Seeing a 4.6 cent decrease from last week – per the EIA.
- Labor: The Canada Industrial Relations Board (CIRB) is assessing if a potential strike by CN and CPKC rail workers could impact the health and safety of Canadians, per the JOC. This ongoing situation delays the potential strike, which could have taken place as early as May 22nd. Take a closer look at these negotiations.
- Equipment: Recent data shows U.S. Class 8 truck sales reach a double digit decline (13%) in April, per Ward Intelligence.
- Baltimore Bridge: Maryland DOT reports a new bridge to replace the Francis Scott Key Bridge, could be completed and opened by fall 2028.
Reminder: It’s International Roadcheck Week
Starting today through Thursday, May 16th, there will be an increase in enforcement of inspections involving commercial motor vehicles all throughout North America. The focus for this year’s Roadcheck is on tractor protection systems and alcohol/drug possession.
Last year it was noticed that load rejections saw increases in the days leading up to and during Roadcheck. Will that happen again this year? Time will tell but it’s something to be aware of as capacity typically decreases (slightly) and in turn rates increase, during this event.
Here’s a couple resources if you want to read more about the background of Roadcheck, the Roadcheck inspection process entails, and what carriers can do to prepare for Roadcheck this week.
Learn more about the In’s and Outs of International Roadcheck 2024
How does one earn a passing stick at International Roadcheck?
Cross-Border: Tractor-Trailer Thefts In April Increased Year-Over-Year
In Mexico, a total of 153 incidents of tractor-trailer thefts occur in April, according to the National Association of Vehicle Tracking and Protection Companies (ANERPV) – an organization for vehicle security and tracking sector in Mexico. These thefts have seen a 7.7% increase from April last year.
Additionally, ANERPV reports the majority of the thefts (33%) happened in the early/late mornings.
What type of trailer was most sought after? That would be dry van trailers per the Mexican Association of Insurance Institutions (AMIS), an organization that looks into and tracks cargo thefts.
Have questions? Reach out to our team today.
Commerce Blog
At the start of the month, railway Union Pacific announced that a premium domestic service has reduced transit time down to three days for its shipper-customers moving cargo from Southern California to an inland hub in the Chicago area.
UP’s new service, which launched Apr. 28, runs daily from the railway’s intermodal terminal at the City of Industry in California to Global 2, a facility in Northlake, IL, west of Chicago and within the city’s metropolitan area.
The premium service is now the second one UP offers daily between the Los Angeles and Long Beach area and Chicago.
Minnesota Receives Funds for Eleven Freight Rail Projects
Last Tuesday the Minnesota Department of Transportation (MnDOT) announced $9.6 million in funds going towards eleven freight rail projects, part of their Rail Service Improvement program.
Few of the projects that were selected, per the MnDOT –
- Seven Rivers Intermodal Terminal LLC in Winona, MN: $511,446 that will create an additional 2,440 feet of track and two internal switches at a terminal to help increase capacity and inbound shipments.
- Louisiana-Pacific Corporation in Watkins, MN: $1.5 million to set up new offloading stations for railcars, along with upgrades for material handling and outdoor storage.
- DeRock Capital Group, LLC in Hector, MN: $246,000 to enhance the sidetrack by adding a switch, 350 feet of rail, ties and updating two rail loading docks. In addition to prepping groundwork next to the rail spur to boost transloading capabilities.
U.S. Rail Traffic From the Week Ending May 4th, 2024:
- Weekly U.S. rail traffic data saw no gain this week compared to the same time last year. The AAR reports 463,106 carloads and intermodal units – which was up 0% from last year.
- Intermodal volume in the U.S. on the other hand saw an almost 5% increase (4.9% to be exact) from the same week last year at 249,696 containers and trailers.
- Commodities including petroleum and petroleum products, miscellaneous carloads, and grain all saw increases. On the flip side, coal, non-metallic minerals, and farm products (excluding grain and food) all saw decreases.
- For the first 18 weeks of this year, rail volume in North America saw a 2.1% increase (11,813,804 carloads and intermodal units) from last year.
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