Commerce Express Weekly Road Map:
September 10th, 2024
Keeping you informed on the latest news/insights in our industry.
AccuWeather Lowers 2024 Atlantic Hurricane Season Forecast After Quiet August
After an unusually tame month of August, AccuWeather has toned down their Atlantic Hurricane Season forecast for the reminder of this year.
AccuWeather now forecasts sixteen to twenty named storms and six to ten hurricanes, with three to six expected to be major. They also predict that four to six storms will impact the U.S. “This update is based on such constant scrutiny of our seasonal hurricane forecast,” AccuWeather Chief Meteorologist Jonathan Porter explained.
Interestingly enough, per Freightwaves, Louisiana is under a hurricane watch as Tropical Storm Francine strengthens.
Hurricanes/Tropical Storms can disrupt truckers and shippers by causing road closures, delays, and increase operational costs. Due to the severe weather it often leads to route changes, potential cargo damage, and facility closures, all of which can delay shipments and increase costs. Additionally, heightened safety risks and potential driver shortages can complicate the supply chain, while increased demand for emergency supplies puts additional pressure on the supply chain.
The Atlantic hurricane season reaches its peak on September 10th and officially concludes on November. However, Poter suggests that tropical threats might persist through November and potentially into December this year, partly due to unusually warm water temperatures.
Commerce Blog
Montana is the latest state to put a hardhat on and contribute towards the greater effort against the country’s outstanding truck parking shortage.
Since spring, the Montana State Department of Transportation has undergone a restoration project aimed at enhancing a pair of rest stop facilities on Interstate 90 near Billings, the state’s most populated city.
Expected to be completed by May 2025, the new facelift of the Hardin Rest Area will include a new weigh station, added security, and, to the relief of trucking stakeholders, an expanded offering of 58 truck parking stalls. The Hardin Rest Area consists of two twin facilities along I-90; one serves westbound traffic, while the other serves eastbound traffic.
The 58 truck parking slots will be divvied nearly equally across the two sites. The westbound one will total 30 spaces, while the eastbound one will have 28 spaces.
Truckload Market:
The Labor Day holiday showed minimal impact on the U.S. trucking market, as rates remain steady. Per Freightwaves data, national dry van spot rates declined leading up to the holiday, while tender rejection rates briefly increased before seeing a decline this past week.
U.S. Labor Uncertainty:
The ILA has wrapped up their two-days of meetings (Sept 4th-5th) during which it updated their wage scale committee on proposed contract terms and prepared members for the potential of a work stoppage at East/Gulf Coast ports. The President of the ILA, Harold Daggett, said they will hit the streets on October 1st, if they don’t receive the contract they feel they deserve.
For months the ILA and USMX have been at an impasse, following a halt in talks back in June when the union learned that automated systems were being used at some ports to process trucks.
Port Infrastructure: The Los Angeles Harbor Commission greenlights $52 million for on-dock rail capacity upgrades for Pier 300 terminal, per the port in a press release. Construction is expected to start in 2025 and will include the addition of five new loading and unloading tracks in the intermodal yard, the port said in a press release.
Canada Labor Uncertainty:
The Canadian Teamsters (TCRC) filed four separate appeals, contesting the Labor Minister’s arbitration order and the CIRB’s decision to end the lockout and work stoppage, per Freightwaves. Two appeals are related to each railroad. This action follows the union’s pledge to challenge the ruling.
The parties involved have been ordered to binding arbitration and the CIRB has issued an order for no additional strikes/lockouts to occur during this process.
Port of Portland: A group of shipping stakeholders have given Oregon Governor a business plan to maintain international container service at the Port of Portland’s Terminal 6. The plan addresses past issues with container volumes and outlines efforts to increase vessel allocations. The port aims to double container volumes at T6 by 2032 and has agreed to raise carrier rates by 16-20% starting in 2023.
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