Transportation Updates
???????????????? Reuters: Jan 9th
- A tentative six-year labor agreement was reached, avoiding a dockworker strike at East and Gulf Coast ports.
- The deal resolves automation concerns, ensuring job protection while modernizing ports for efficiency and capacity.
- Ports from Maine to Texas, handling over half of US container imports, will continue operating under the current contract until ratification.
- A three-day October strike caused cargo backlogs and increased shipping prices, highlighting the stakes.
- Modernization efforts under the deal aim to strengthen supply chains and support long-term port growth.
???????????????? Journal of Commerce: Jan 6th
- LTL consolidation accelerates in 2025, with regional carriers seeking scale and density to improve service and profitability.
- Midwest LTL market sees heightened activity after Yellow's 2023 closure, leaving gaps in premium next-day service offerings.
- Pitt Ohio's acquisition of Sutton Transport expands its Midwest footprint, following other recent deals like Moran-RMX.
- Rising operating costs and pricing pressures push smaller carriers toward mergers or acquisitions to stay competitive.
- The top 40 LTL carriers dominate 84% of the $62.2 billion market, and their leaders are vying for further growth and efficiency gains.
???????????????? Logistics Managers’ Index: Jan 6th
- The December 2024 Logistics Managers’ Index (LMI) decreased to 57.3, reflecting seasonal slowdowns in inventory levels and costs.
- Inventory levels varied, with upstream firms expanding (57.9) and downstream retailers contracting sharply (33.9) after strong holiday sales.
- Transportation prices grew to 66.8, their fastest expansion since April 2022, driven by strong e-commerce and last-mile delivery demand.
- Future forecasts predict significant inventory growth (70.3) and continued warehousing and transportation price increases in 2025.
- Warehousing utilization (61.7) and capacity (56.9) expanded, with downstream firms anticipating tighter capacity and higher costs next year.
Economic Updates
???????????????? CNBC: Jan 10th
- December payrolls exceeded forecasts, rising by 256,000 compared to an expected 155,000, reflecting strong labor market growth.
- The unemployment rate dropped to 4.1%, while broader unemployment fell to 7.5%, its lowest since mid-2024.
- Wage growth slowed, with hourly earnings rising 3.9% annually, slightly under expectations, easing inflationary wage concerns.
- Stock futures fell, and Treasury yields climbed as stronger job data reduced expectations for Federal Reserve rate cuts.
- Job gains were concentrated in healthcare, leisure, hospitality, and retail, showing ongoing labor market stability despite economic uncertainties.
???????????????? The Wall Street Journal: Jan 8th
- Laredo, TX, and Detroit, MI, thrive on cross-border trade, with Laredo now the top US trade port by value.
- Potential 25% tariffs on Mexico and Canada could disrupt these economies, affecting industries and consumer prices.
- Post-Covid nearshoring boosted trade in Laredo, while Detroit benefits from rising electric vehicle and battery manufacturing.
- Business owners brace for tariffs by reviewing cash flows while trade-related jobs and infrastructure expand in both cities.
- Tariffs may raise costs on essential imports like auto parts and avocados, challenging companies dependent on supply chain predictability.
Specific Articles
???????????????? Urban Milwaukee: Jan 6th
- Evans Transportation projects 20%+ growth in 2025, building on significant 2024 market expansion and service enhancements.
- The company expanded into Mexico, offering inbound, outbound, and intra-Mexico shipping solutions to address growing cross-border trade.
- Evans received multiple industry awards in 2024, recognizing growth, workplace culture, and contributions to the local economy.
- The company emphasizes a customer-first approach, fostering innovation and trusted client relationships through the "Evans Experience."
- Evans serves as a single-source logistics provider for diverse industries, including automotive, energy, food, healthcare, and manufacturing.
???????????????? The Wall Street Journal: Jan 9th
- US warehouse rents increased 61% since 2019, averaging $10.13 per square foot in Q4 2024.
- Declining construction reduced new warehouse space by 31% in 2024, keeping supply constrained and rents elevated.
- Tenants renewing pandemic-era leases face steep increases, sometimes two to three times higher than five years ago.
- Some markets, like Southern California, offer minor rent reductions or concessions, such as free rent months.
- Companies often relocate to reduce costs despite high expenses for moving inventory and updating infrastructure.
???????????????? The Wall Street Journal: Jan 6th
- New York's congestion pricing plan imposes a $21.60 toll for trucks entering Manhattan's business district, increasing to $36.00 by 2031.
- Truckers face mounting costs, including tolls, fines, and operational expenses, which are already among the highest in the US.
- The toll aims to reduce traffic and fund transit improvements but adds significant financial strain to businesses and carriers.
- Carriers say overnight deliveries could lower costs, but many customers lack overnight staff or secure facilities.
- Freight operators fear losing customers and profitability as they pass rising costs to businesses already on tight margins.
???????????????? OilPrice.com: Jan 6th
- Tech giants are fueling nuclear energy demand, with Microsoft, Google, and Amazon investing heavily in nuclear power for data centers.
- Uranium supply constraints loom large, as US nuclear reactors heavily rely on geopolitically sensitive sources like Russia, which provides 27% of enriched uranium.
- Nuclear power is critical for net-zero goals, as financial and operational challenges hinder wind and solar energy from serving as primary energy sources.
- Canada emerges as a key uranium supplier, exporting 80% of its production and positioning itself to meet surging global demand.
- Uranium prices are expected to soar, driven by rising global demand, plans to triple nuclear power capacity by 2050, and supply deficits.
???????????????? FreightWaves: Jan 7th
- Over 4,500 freight-related layoffs were announced nationwide across several companies and locations, including Big Lots, DMSI, and FedEx.
- Big Lots filed for Chapter 11 bankruptcy, potentially closing three distribution centers, affecting 2,230 employees.
- DMSI layoffs in California, impacting 1,683 workers, result from Ross Dress for Less transitioning to a new 3PL provider.
- FedEx and Ryder cited non-renewed contracts as reasons for layoffs, with FedEx cutting 341 jobs under its Network 2.0 initiative.
- Rising cost pressures and restructuring in logistics are driving layoffs, warehouse closures, and shifting operational strategies.
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