Your Gateway to Logistics Excellence - Week of November 18th
Evans Transportation Services
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Transportation Updates
ILA breaks off East Coast port contract talks
FreightWaves: Nov 13th
The International Longshoremen’s Association (ILA) halted contract talks over proposed automation at East and Gulf Coast ports.
Employers, represented by the United States Maritime Alliance (USMX), proposed semi-automated equipment, which the ILA rejected, citing job elimination concerns.
A prior October strike by the ILA halted operations at 36 ports, costing billions, until negotiations resumed with government intervention.
The ILA agreed to a 62% pay increase but remains firm on opposing automation due to potential job losses.
USMX argues that limited technology upgrades are needed for safety, efficiency, and supply chain resilience without eliminating jobs.
FMCSA's CDL rule will be test for safety, freight capacity
FreightWaves: Nov 15th
Effective Monday, FMCSA's Clearinghouse II rule will suspend the driving privileges of nearly 200,000 CDL holders with drug or alcohol violations.
Affected drivers must complete the return-to-duty process, involving treatment and testing, before resuming safety-sensitive functions.
States have 60 days to record CDL downgrades, allowing some flexibility in implementation and potentially affecting safety and freight capacity.
Trucking companies are cautiously monitoring the rule's impact on capacity, uncertain about its enforcement and scope.
FMCSA estimates that 82% of affected drivers will complete their return-to-duty process before CDL downgrades, minimizing income loss.
US-bound imports see annual October gains
Logistics Management: Nov 11th
October US-bound imports increased 5.8% year-over-year to 2.79 million TEUs but declined 3.3% from September.
Early shipping to avoid the October port strikes and hurricanes contributed to the unseasonal monthly decline.
Year-to-date imports reached 26.86 million TEUs, an 11.8% increase from the same period in 2023.
Import trends varied by commodity, with declines in capital goods and autos, while apparel imports rose 20.8%.
Shippers may continue front-loading imports ahead of potential East and Gulf Coast port disruptions in January.
How shippers can navigate West Coast rail congestion
SupplyChainDive: Nov 15th
Rising container volumes at West Coast ports, driven by peak season and strike-avoidance efforts, are causing increased rail dwell times.
The Port of Los Angeles reported average rail dwell times near eight days, while the Port of Long Beach maintained a four-day dwell.
Rail operators like BNSF and Union Pacific are adding capacity with staging yards and managing increased international volume.
Shippers are using cross-dock facilities, alternative ports, air freight, and trucking to mitigate delays and maintain flexibility.
Experts predict rail congestion may ease in Q1 2025, contingent on stable operations and no further disruptions.
Logistics Outsourcing Market Is Expected To Reach a Revenue Of USD 1,637.8 Billion By 2033
Yahoo News: Nov 11th
The global logistics outsourcing market is projected to grow to USD 1,637.8 billion by 2033 at a 4.7% CAGR.
The US market is forecasted to reach USD 378.5 billion by 2033, driven by e-commerce growth and complex supply chains.
Key market segments include supply chain management and highway transportation, with e-commerce expected to dominate by revenue.
Sustainability trends are prominent, with firms adopting green logistics, alternative fuels, and energy-efficient practices to reduce environmental impact.
Asia Pacific is expected to lead the market by 2024, holding a 35.5% share due to rising demand in the region.
Economic Updates
Here’s the inflation breakdown for October 2024
CNBC: Nov 13th
US annual inflation rose to 2.6% in October, up from 2.4% in September, driven by high housing costs.
Gasoline prices declined 1% monthly and 12% annually, while grocery inflation remained minimal at 0.1% monthly.
Auto insurance premiums surged 14% year-over-year, impacted by previous car price increases and regulatory delays.
Housing costs remain the largest driver of inflation, with shelter inflation increasing 0.4% in October, slowing overall progress.
Economists forecast inflation could stabilize around 2.1% in 2025 without policy changes but could reach 3% if new policies are enacted.
OPEC Trims Demand Forecast for Fourth Straight Month
The Wall Street Journal: Nov 12th
OPEC reduced its oil demand growth forecast for the fourth month, now expecting 1.82 million barrels per day (bpd) growth this year.
Forecasts for China’s demand growth were lowered to 450,000 bpd, reflecting weaker consumption data in September.
Demand remains above pre-pandemic levels despite the revisions due to strong air travel, road mobility, and industrial activities.
OPEC+ has extended production cuts through December, prioritizing price stability over market share amid global supply concerns.
Economic growth estimates were raised to 3.1% in 2024, bolstered by positive US, Brazil, and China trends.
Private Equity Gears Up for Deals to Take Off
The Wall Street Journal: Nov 11th
Private-equity firms expect tax cuts and regulatory easing to stimulate dealmaking and boost fundraising efforts.
Major players like Blackstone, KKR, and Ares have deployed billions this year, preparing for increased deal activity.
The Federal Reserve’s recent rate cuts are expected to drive more investments, particularly in IPOs and buyouts.
Executives report heightened interest in transactions, with nondisclosure agreements rising and IPO discussions advancing.
Despite optimism, some caution remains over inflationary pressures and potential limitations on further rate cuts.
Specific Articles
TFI Buys Manitoba-Based TL, LTL Carrier Keystone Western
Transportation Topics: Nov 13th
TFI International acquired Manitoba-based Keystone Western, a TL and LTL carrier, enhancing its North American service network.
This acquisition is one of nine smaller deals for TFI in 2024, supporting its strategic expansion goals.
Keystone Western operates with under 100 tractors and has terminals in key Canadian locations, including Winnipeg and Vancouver.
CEO Alain Bédard confirmed TFI’s continued focus on acquisitions, projecting $200–$300 million in M&A investments annually.
TFI is also targeting major US LTL acquisitions, aiming to strengthen its position in the competitive US LTL market.
Kuehne+Nagel acquires majority share of US-based IMC Logistics
FreightWaves: Nov 14th
Kuehne+Nagel acquired 51% of IMC Logistics, a US-based marine drayage specialist, strengthening its North American market position.
IMC Logistics, headquartered in Tennessee, manages 2 million TEUs annually and recorded $800 million in revenue in 2023.
The acquisition aligns with Kuehne+Nagel’s strategy of organic growth through targeted acquisitions, particularly in Asia and North America.
Kuehne+Nagel will retain the IMC brand, combining IMC’s inland logistics expertise with its global network.
The deal, subject to regulatory approval, is expected to close in early Q1 2025.
PS Logistics acquires Fluker Transportation
American Journal of Transportation: Nov 11th
PS Logistics' subsidiary, Blair Logistics, acquired Fluker Transportation, a flatbed and heavy-haul trucking company in Louisiana.
Founded in 2011, Fluker specializes in transporting steel, construction equipment, and defense-related freight across the Southeast US.
This acquisition expands Blair's geographic reach and freight capacity, aligning with PS Logistics' growth strategy.
Fluker will operate under the Blair Logistics name, with both companies emphasizing driver support and customer service.
PS Logistics has acquired 27 trucking companies and five non-asset logistics firms since 2016, targeting family-owned businesses for expansion.
Very informative