Commerce Express Weekly Road Map:
September 24th, 2024
Keeping you informed on the latest news/insights in our industry.
Despite Slowly Growing Freight Volumes, Truckload Rates Remain Stagnant
U.S. truck and rail freight volumes seem to be slowly increasing, as indicated by a 1% rise in the Cass Freight Shipments Index in August, following a 3% increase in July. Despite these gains, truckload rates have not seen substantial increases, as the Cass Truckload Linehaul Index dropped 0.6% in August, marking four consecutive months of decline.
Retail sales also saw a year-over-year increase of 2% in August, with e-commerce rising by 7.8%, but the overall retail price index fell slightly, the JOC reported on. Consumer price inflation reached a three-year low of 2.5% in August, yet these positive retail trends have not translated into higher truckload pricing.
With a potential East/Gulf Coast strike getting closer, truckload rates on the West Coast could see a boost. Our market update section has more insights on that labor uncertainty.
Commerce Blog
On Monday, the Surface Transportation Board, an independent federal agency which oversees regulation of the rail industry, held its first day of hearings focused around rail’s lack of growth, especially in its competition for freight business against trucking, a bout the latter has dominated.
In what’s designed to be a forum where stakeholders converge and share uncomfortable truths, railroad executives skewed in another direction. Class I railroads reminded those in attendance of their successes and advantages to customers, whether through expanded intermodal offerings or cheaper freight rates (compared to truckload).
Read more…
U.S. Labor Uncertainty: More questions will hopefully be answered next week, as the looming ILA/USMX contract expiration date arrives, on September 30th. The ILA leadership has stated they will hit the streets on October 1st, if they do not reach a new contract agreement.
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.
Have questions? Get in touch with our team today.
Weather: Ports along the Gulf Coast (Louisiana to Florida’s West Coast) are monitoring a tropical storm that could develop into a hurricane and hit the regions on Thursday.
Port Infrastructure: The Ports of Indiana-Burns Harbor is investing $25 million for infrastructure improvements, including the addition of two new railyards and the first entirely new dock in twenty years, per Freightwaves. Back in June, Indiana Ports received approval from the U.S. CBP to begin developing an international ocean container terminal, set to open in 2026.
Diesel Update: After a 10 week decline, this week the average price of diesel increased 1.3 cents to a gallon, per the U.S. EIA.
Trucking Championships: The National Truck Driving & Step Van Driving Championships are coming to Minneapolis, MN in 2025! During the NTDC, drivers display their skills, knowledge, and professionalism through a written exam, pre-trip inspection, and a skills test.
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