Transportation Updates
???????????????? Logistics Management: Mar 3rd
- Major NMFC rating changes begin July 19, expanding density ratings from 11 to 13 and eliminating 2,000 outdated items.
- LTL carriers and shippers must adjust to density-based pricing, focusing on space, loadability, and packability over weight.
- Shippers are urged to prepare now to avoid billing errors and rising costs, as inaccurate data may lead to higher rates.
- Dimension-measuring machines and updated TMS systems are key tools for accurately classifying freight under new rules.
- Freight All Kinds (FAK) rates will increase under new density guidelines, pushing shippers to classify freight more precisely.
???????????????? Journal of Commerce: Mar 3rd
- Cross-border truckload volumes between the US and Canada rose 40% year-over-year in early 2025, per Loadlink data.
- Dry van spot rates from Toronto to Chicago surged 7%, while volumes spiked 57% in late February amid looming tariffs.
- Average US-to-Canada spot rates climbed 18% since the election, reaching two-year highs, as firms rush to avoid tariffs.
- Canadian spot truck capacity fell 29% year-over-year in January, while cross-border loads accounted for 72% of total freight.
- Rates on US-Mexico lanes showed minimal increases, highlighting sharper US-Canada freight impacts due to upcoming US tariffs.
???????????????? FreightWaves: Mar 6th
- Over 14,300 freight-related workers were laid off since January, impacting manufacturing, distribution, logistics, and transportation sectors.
- Food distributors like Harvest Sherwood, Cargill, ADM, and Perdue Farms cut thousands of jobs due to rising costs and reduced demand.
- Automotive sector layoffs exceeded 2,000, including Goodyear, Bridgestone, GM, Nikola, and Volkswagen, driven by restructuring and slowing EV sales.
- Major 3PLs and trucking companies like DHL, UPS, Kuehne + Nagel, and SDK Logistics announced significant closures and layoffs.
- Canadian firm Sheertex furloughed 40% of its workforce, citing US tariffs on Canadian goods as a primary cause.
???????????????? The Wall Street Journal: Mar 4th
- BlackRock-led group to acquire Panama Canal ports from CK Hutchison for $22.8 billion, addressing US security concerns.
- Deal gives US firms control of Balboa and Cristóbal ports, handling 40% of canal container traffic, amid fears of Chinese influence.
- Trump administration pressured Panama and Hutchison over China’s port presence, threatening US takeover of the canal.
- Hutchison exits 43 global ports under US and Panamanian pressure but retains China and Hong Kong assets, earning $19 billion in cash.
- US officials cite risks of China using port equipment for surveillance; Panama withdrew from China’s Belt and Road as part of deal.
Economic Updates
???????????????? The Wall Street Journal: Mar 7th
- US added 151,000 jobs in February, below forecasts of 170,000 but stronger than January’s gain of 125,000.
- Unemployment rate rose to 4.1% from 4%, partly due to a loss of 10,000 federal jobs linked to hiring freezes.
- Healthcare led job growth with 52,000 new jobs; transportation and warehousing added 18,000; restaurants and bars lost 27,500.
- Average hourly earnings rose 0.3% month-over-month, marking a 4% increase from the prior year.
- Economists warn that future job growth could slow due to tariffs, government job cuts, and immigration restrictions.
???????????????? The Wall Street Journal: Mar 6th
- Trump grants temporary reprieve from 25% tariffs on some Mexico and Canada goods under USMCA, delaying them until April 2.
- Tariffs remain on non-USMCA goods like computers, phones, and medical equipment, causing ongoing trade tension and market drops.
- Canada and Mexico responded with mixed measures—Canada paused $87B in retaliatory tariffs but kept $21B in place; Ontario imposed export tax on US electricity.
- Auto CEOs pledged to shift supply chains back to the US, prompting Trump’s partial tariff pullback, though paid tariffs since Tuesday remain non-refundable.
- Confusion grows over tariff goals—Republicans and Democrats question whether tariffs target drugs, trade imbalance, or political leverage, as recession fears rise.
???????????????? Logistics Managers’ Index: Mar 4th
- LMI rose to 62.8 in February, driven by surging inventory levels (64.8) and costs (77.3), reaching the highest expansion since June 2022.
- Inventory buildup ahead of potential tariffs spiked warehousing prices to 77.0, while capacity tightened to near contraction at 50.5.
- Transportation capacity expanded to 55.1, but utilization (57.8) and prices (65.5) slowed as freight volumes became static.
- Future outlook shows continued inventory growth (69.1) with sharply rising cost expectations, suggesting sustained pressure on supply chains.
- Tariff uncertainties and rising inventories are shifting firms from just-in-time to just-in-case models, risking inflation resurgence.
???????????????? OilPrice: Mar 4th
- WTI Crude is trading at $66.51 and Brent at $69.78 as sufficient OPEC+ spare capacity keeps prices in the low $70s.
- Tariffs on Canada, Mexico, and China are creating uncertainty, likely slowing US economic growth and reducing oil demand.
- OPEC+ plans gradual supply increases, adding 138,000 bpd in April, but remains flexible depending on market conditions.
- Hedge funds aggressively cut bullish oil bets, with WTI net long positions falling to the lowest level in nearly 15 years.
- Forecasts see Brent averaging $74.63 and WTI $70.66 per barrel in 2025, but potential economic downturns could pressure prices lower.
???????????????? TruckingDive: Mar 4th
- US manufacturing grew in February as firms rushed orders ahead of Trump’s upcoming tariffs, pushing PMI to 52.7.
- Tariff fears drove commodity prices, including steel and aluminum, up 20% month-over-month, pressuring input costs.
- Supply chains strained as suppliers delayed orders over tariff cost disputes, slowing deliveries and raising prices.
- Manufacturing employment index fell to 47.6% as firms reduced layoffs but relied on attrition amid economic uncertainty.
- Manufacturers fear sustained cost hikes and inflation, with tariff-driven input cost inflation reaching its highest level since 2022.
Specific Articles
???????????????? FreightWaves: Mar 5th
- A Duie Pyle will open three new Ohio service centers to offer faster, next-day LTL service and reduce transit times.
- Expansion aims to replace reliance on Dayton Freight for Ohio shipments, cutting a full day from delivery timelines.
- Pyle acquired a former Yellow terminal in Bowling Green, leased a Columbus site, and is pursuing a Cincinnati facility.
- Despite expansion, Pyle will maintain its partnership with Dayton Freight for shipments beyond Ohio, like Michigan and Indiana.
- Pyle’s growth increases its terminal network from 13 in 2010 to 34 by mid-2025, driven by rising demand for direct service.
???????????????? Transport Topics: Mar 6th
- A Duie Pyle opened a 186,000 sq. ft. warehouse near Charlotte, NC, expanding services beyond the Northeast.
- The facility offers warehousing, hazmat storage, consolidation, and trailer parking for up to 75 trailers.
- Pyle continues growing by acquiring former Yellow Corp. terminals, including Ohio, West Virginia, and Pennsylvania locations.
- A new fleet maintenance facility in Richmond, VA, supports LTL and dedicated fleets, featuring three bays and a truck wash.
- Future terminals are planned in Altoona, PA; Burlington, VT; Fredericksburg, VA; northeast Maryland; and Norfolk, VA by 2026.
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