OCTOBER NEWS

??? Hurricane Milton Update: Port Closures ???

Hurricane Milton has made landfall, leading to the closure of several key Florida ports to commercial vessels, including Port Tampa Bay and Seaport Manatee, both under a “Zulu” port condition from the U.S. Coast Guard.

Port Tampa Bay, which supplies 43% of Florida's fuel, is currently assessing damage and is without power, though no significant dock damage has been reported. Seaport Manatee, vital for fresh produce imports, is also facing power outages and is evaluating its facilities.

Additionally, other Gulf Coast ports like Colonel’s Island and Port Panama City are impacted, with operations either suspended or gradually resuming.

Our thoughts are with everyone affected by this storm. We urge everyone in the logistics community to prioritize safety during this time. We will continue to monitor the situation and provide updates as they become available.

?#Logistics #HurricaneMilton #PortUpdates #FloridaPorts #SafetyFirst

Source: FreightWaves

?? Market Update: Pricing Power Index Insights ??

This week, the freight market is experiencing notable changes as we assess the impact of Hurricane Milton in Florida. Here are the key highlights:

?? Rebound in Tender Volumes: The Outbound Tender Volume Index (OTVI) increased by 2.91% week-over-week and is now 8.3% higher compared to last year, primarily driven by short-haul loads.

?? Increase in Tender Rejection Rates: The Outbound Tender Reject Index (OTRI) has reached 5.66%, signaling tighter market capacity as we approach peak season.

?? Spot Rate Trends: While spot rates have slightly decrease, the gap between spot and contract rates is widening, indicating ongoing market adjustments.

?? Regional Impacts: Areas preparing for hurricane relief have seen the most significant increases in rejection rates, highlighting immediate logistics challenges.

As we prepare for the busy months ahead, NGL Transportation is committed to adapting to these market dynamics to ensure we continue delivering excellence in service. Stay safe and stay informed!

#Logistics #SupplyChain #FreightMarket #HurricaneRelief #PricingPowerIndex

Source: FreightWaves

?? Important Update on the Port of Montreal ??

We’d like to highlight an important situation unfolding at the Port of Montreal. The Longshoremen’s Union Local 375 has commenced an overtime strike, which could significantly impact cargo operations.

Negotiations have stalled, and the previous contract expired on December 31, 2023. The Maritime Employers Association warned that even minor job actions could lead to a complete shutdown of operations, and workers assigned shifts but unable to work will not be compensated for those hours.

For businesses that rely on this port, we encourage you to stay informed about this potential supply chain disruptions.?

#Logistics #SupplyChain #PortOfMontreal #UnionStrike

Source: FreightWaves

?? Prologis Q3 Update: Navigating the Current Market Landscape ??

In a recent earnings call, Prologis addressed the ongoing challenges in warehouse leasing demand. The company anticipates that this downturn will extend into mid-2024, though it remains cautiously optimistic about the future.

Here are some key highlights:

- Q3 Performance: Core FFO of $1.43 per share, exceeding expectations, with revenue up 6% year-over-year.

- Leasing Activity: Over 50 million square feet leased, reflecting a 10% increase. Occupancy remains strong at 95.9%, outperforming the broader market.

- Market Dynamics: While global rents are down 3%, Southern California portfolio shows resilience with significant rent stability.

- Future Outlook: Rise of vacancies expected but believe the long-term impact on earnings will be minimal, supported by strategic lease timing and recent legislation in California that may drive rents higher.

Despite revising our development starts guidance, Prologis is raising its acquisition targets and remains optimistic about a market recovery expected after 2026..

#Logistics #RealEstate #Prologis #MarketUpdate #WarehouseLeasing #InvestmentInsights

Source: FreightWaves

?? The Rising Threat of Cargo Theft and Freight Fraud??

In recent years, the logistics industry has experienced a concerning rise in cargo theft and freight fraud. This trend presents serious challenges for shippers, brokers, and carriers, highlighting the urgent need for action.

In a recent episode of the 10-44 podcast by CCJ Digital, Frank Matarazzo, CEO of Fusion Transport, highlighted the pressing need for a "Cargo Theft Playbook." Here are some key insights:

Understanding the Threat ?

Identity theft in transportation is a significant issue, as fraudsters are increasingly impersonating legitimate carriers to steal valuable cargo. This kind of theft can lead to considerable losses, frequently leaving affected parties with few options for recourse.

Economic Factors at Play

Ongoing economic pressures have prompted many individuals to take greater risks, heightening the chances of cargo theft. As the dynamics of risk and reward change, it’s essential for us to stay alert.

Government Initiatives??

While the FMCSA (Federal Motor Carrier Safety Administrator) is working on reforms and Congress is considering legislation to address these issues, we cannot afford to wait for these changes to take effect.?

Preventative Measures?

To protect the shipments, rigorous verification of carrier credentials is essential. Basic checks can go a long way in preventing theft and ensuring the integrity of our operations.

Embracing Technology??

Implementing GPS tracking and performing thorough inspections are essential measures for monitoring and protecting our shipments.

The Upcoming Cargo Theft Playbook??

The playbook will outline best practices and provide a checklist for shippers and warehouses to implement, helping to reduce cargo theft significantly.

As an industry, it’s vital that we share knowledge and adopt these best practices. Together, we can create a safer logistics environment for all.

#Logistics #CargoTheft #FreightFraud #SupplyChainSecurity #IndustryInsights

Source: CCJ Digital

?? Industry Update: Decline in Trailer Orders

Recent data from FTR Transportation Intelligence and ACT Research showed a significant decline in U.S. trailer orders for September. There was a 63% drop compared to the same month last year and markets the lowest total since 2016. While there was a slight month-over-month increase, these figures still fell short of industry expectation. This raised concerns as we are headed into the new order season.?

Navigating these challenging market conditions is crucial for logistics companies to stay informed and agile. The current freight landscape is affecting both trailer demand and production rates, prompting many fleets to prioritize investments in new power units instead.

With trailer net orders for 2024 down 34% from last year and total production declining, the industry could experience extended effects into 2025. High cancellation rates and shrinking backlogs add further complexity to the situation.

At NGL, we do our best in adapting to these changes and delivering the best possible solutions to clients in a fluctuating market. Let’s stay connected and support each other through these challenging times!

#Logistics #FreightMarket #TrailerOrders #SupplyChain #IndustryInsights

Source: CCJ Digital

?? Record Volumes at the Port of Los Angeles!??

In September, the Port of Los Angeles achieved an impressive milestone, reaching a record volume of 954,706 TEUs, which represents a 27% increase compared to the previous year. This growth played a key role in reaching an all-time high of 2,854,904 TEUs for the third quarter.

Key highlights:

- Imports: Increased by 26% to 497,803 TEUs as retailers prepare early for the holiday season.

- Year-to-date: Total volume reaches 7,586,395 TEUs, marking an 18% increase.

- Future Growth: A new truck reservation system launching in November will enhance container traffic efficiency.

Despite increased rail dwell times, port operations continue to run smoothly, supporting the ongoing strength in retail sales and consumer demand.

Executive Director Gene Seroka expects October volumes to reach the mid-800,000 TEU range, reflecting solid activity even during the usual slack season.?

As we navigate potential supply chain challenges, it’s crucial for all ports to operate at peak efficiency for continued economic growth. Let’s keep the momentum going!?

#Logistics #SupplyChain #PortOfLosAngeles #Shipping #Retail #EconomicGrowth

Source: FreightWaves