Transportation Updates
???????????????? Journal of Commerce: Feb 14th
- LTL producer price index (PPI) rose 5.8% in January, the most significant monthly increase since Yellow’s collapse in August 2023.
- Industrial production and new manufacturing orders increased, with PMIs turning positive for the first time in over two years.
- LTL carriers secured contract rate increases, though shipment volumes remain weak, down 8.2% year over year in January.
- Shippers show growing optimism, expecting freight demand to improve, but uncertainty remains over potential tariffs.
- Freight recovery is likely to be gradual, with industrial shipments typically lagging PMI growth by two months, per Old Dominion Freight Line.
???????????????? Cass Information Systems, Inc.: Feb 14th
- Freight shipments fell 8.2% year-over-year, continuing a downward trend, with private fleet expansion reducing for-hire freight demand.
- Freight expenditures declined 4.8% month-over-month, though rates increased for the fifth consecutive month, up 0.5% from December.
- Truckload Linehaul Index rose 0.6% in January, marking five consecutive months of small increases from the August low point.
- Inferred Freight Rates increased 4.3% year-over-year, signaling a shift toward modest rate growth in 2025 after a 7% decline in 2024.
- Freight volumes remain soft, but capacity adjustments drive higher rates, with industry regulations expected to shape 2025-2026 trends.
???????????????? SupplyChainDive: Feb 10th
- January container imports reached 2,487,470 TEUs, surpassing the previous January record from 2022 by 21,455 TEUs.
- Imports rose 5.1% from December and 9.4% year-over-year, marking the seventh consecutive month of elevated volumes.
- Chinese imports increased 10.6% to 997,909 TEUs, just 2.4% below the July 2024 peak, despite tariff uncertainties.
- New US tariffs on Chinese goods (10%) took effect February 4, while planned 25% tariffs on Mexico and Canada were postponed until March.
- Despite high volumes, port transit delays remain stable, though businesses face risks from trade tensions and geopolitical instability.
Economic Updates
???????????????? The Wall Street Journal: Feb 12th
- Consumer prices increased 0.5% from December, the largest monthly rise since August 2023, surpassing expectations of 0.3%.
- Annual inflation reached 3% in January, up from 2.9% in December, complicating the Federal Reserve’s rate-cut timeline.
- Core inflation rose 3.3% year-over-year, with significant price hikes in used cars, auto insurance, and eggs (up 15%).
- Fed Chair Jerome Powell reaffirmed a restrictive policy stance as price pressures persist beyond housing and rental costs.
- Tariffs and seasonal price adjustments could further impact inflation, making rate cuts unlikely in early 2025.
???????????????? Bloomberg: Feb 9th
- President Trump announced 25% tariffs on all US steel and aluminum imports, affecting major suppliers like Canada, Mexico, and the EU.
- No exemptions are planned, with tariffs imposed under Section 232 for national security reasons, similar to 2018 measures.
- Markets reacted swiftly, with US steelmakers’ stocks rising, while auto manufacturers relying on steel saw mixed performance.
- The EU and other trading partners may retaliate, potentially reinstating tariffs on US goods if the measures proceed.
- The move adds uncertainty to global trade as businesses scramble to adjust supply chains ahead of the expected March implementation.
???????????????? FreightWaves: Feb 11th
- Mexico was the top US trade partner for the second consecutive year, reaching an all-time high of $840 billion in trade.
- US imports from Mexico rose 6% year-over-year to $506 billion, while exports to Mexico increased 3% to $334 billion.
- Port Laredo, Texas, was the busiest US trade gateway, handling $339 billion in two-way trade, surpassing Los Angeles and Chicago O'Hare.
- Mexico's top exports to the US were auto parts, worth $26.6B, passenger vehicles, worth $16.6B, and computers, worth $13.4B.
- Leading US exports to Mexico included auto parts worth $14B, gasoline worth $3.8B, and electric storage batteries worth $ 3.5 B.
???????????????? FreightWaves: February 10th?
- US container imports remain high as retailers frontload goods, anticipating further tariffs on China and other trade partners.
- December container imports reached 2.14 million TEUs, up 14.4% year-over-year, making it the busiest December on record.
- Total 2024 imports hit 25.5 million TEUs, nearing the 2021 record of 25.8 million TEUs, driven by tariff concerns and labor disputes.
- Trump imposed 25% tariffs on Canadian and Mexican imports (paused for 30 days) and 10% on Chinese goods (effective February 4).
- Ports expect strong volumes through May, with March projected at 2.14 million TEUs or +11.1% and April at 2.18 million TEUs or +8.2%.
???????????????? The Wall Street Journal: Feb 13th
- The vacancy rate for warehouses under 100,000 square feet dropped to 3.9%, significantly lower than the overall rate of 6.7%.
- Developers prioritize large warehouses over 100,000 square feet, limiting the new supply of smaller urban and suburban facilities.
- Businesses seek smaller warehouses to reduce costs and improve delivery speed by decentralizing inventory.
- Only 8% of new warehouse construction in 2024 was under 100,000 square feet, highlighting the supply-demand imbalance.
- Companies are expanding searches and optimizing storage due to a lack of availability in key regions.
Specific Articles
???????????????? FreightWaves: Feb 12th
- Knight-Swift, A. Duie Pyle, and TForce acquired seven Yellow terminals for a combined $15.1 million in bankruptcy sales.
- Knight-Swift purchased four terminals for $9.9 million, adding to its 29-terminal acquisition from Yellow since late 2023.
- Duie Pyle acquired two terminals for $4.5 million, following a previous $29.4 million purchase of four Yellow properties.
- TForce bought a 17-door terminal in North Carolina for $700,000, aligning with its goal of expanding before a planned spinoff.
- Yellow has sold nearly 200 terminals for over $2.2 billion, with the remaining properties set for auction later this month.
???????????????? SupplyChainDive: Feb 7th
- USPS Ground Advantage volume increased 16.1% year-over-year, with revenue rising 27%, exceeding market expectations.
- Over 1,000 direct customer contracts were secured in Q4, with thousands more in the sales pipeline, strengthening USPS’s package network.
- Parcel Services volume, used by consolidators, declined 3.1% as price hikes forced adjustments in consolidator strategies.
- USPS is shifting operations to compete with FedEx and UPS, aiming for $3.7 billion in annual savings through facility consolidations.
- Regulatory concerns persist, with critics questioning the impact of USPS’s changes on service reliability and long-term financial health.
???????????????? FreightWaves: Feb 10th
- Jack Cooper, a major unionized auto hauler, is closing after 97 years, following contract losses with Ford and General Motors.
- Ford terminated its contract on the first business day of 2025, triggering GM to seek alternative transport providers shortly after.
- GM stopped loading vehicles onto Jack Cooper trucks last Thursday, effectively ending their long-standing business relationship.
- Company leadership instructed most employees not to return to work, with only a few retained to assist in the shutdown process.
- Senators attempted to intervene in the Ford dispute, but efforts had no impact, leading to the company's closure.
???????????????? FreightWaves: Feb 10th
- ArcBest launched a forklift capable of capturing freight dimensions, enhancing efficiency, and reducing costs compared to static dimensioners.
- Vaux Vision uses 3D sensors on forklifts to record freight data, identifying damage, hazardous materials, and stackability in real-time.
- The Vaux Freight Movement System now accommodates air cargo containers, allowing for efficient loading of nonpalletized freight and vehicle racks.
- Autonomous mobile robot forklifts can now load/unload trailers, supporting double stacking and bulk stacking in warehouse environments.
- ArcBest’s Innovation Warehouse serves as a testing hub, refining autonomous and dimensioning technology for future logistics advancements.
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Director of Human Resources at D&H Industries
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