Good morning. We're bringing you the top insights for freight brokers from Arrive's September 2024 Freight Market Update. Watch out because impending East and Gulf Coast port strikes and hurricane fallout can stir things up.
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The FreightCaviar Podcast: Check out this week's episode on the importance of training and networking in logistics.
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🌀 Helene Makes Landfall As A Category 4.Hurricane Helene slammed into Florida’s Big Bend as a powerful Category 4 storm around 11:10pm EST Thursday night, packing 140 mph winds and sparking widespread destruction. The storm surge, deemed a "nightmare," caused devastating flooding, while tornadoes hit Georgia. Over a million lost power across Florida and Georgia, with three reported deaths. Officials urged evacuations as Helene threatened the Southeast, extending warnings into Georgia, the Carolinas, and beyond.
🚛 Next Trucking Furloughs Workers After Critical Loss. Next Trucking looks to be on the brink of collapse after losing key clients Amazon and Tesla, furloughing most employees. The company faces accusations of failing to pay carriers, pushing many toward financial ruin. A turning point came when Tesla rerouted a $3.5 million payment to carriers after learning of Next’s debts. With millions owed to vendors, repossessed assets, and an unpaid workforce, things don't look good. Executives are scrambling for last-minute funding while their new venture, Batch Freight, raises suspicions.
🚛 FMCSA’s Fraud-Fighting Renovation. FMCSA is cracking down on freight fraud, which has surged 600%, with a new registration audit and identity verification system to purge scammers. Speaking on "The Bodacious Cowboy Podcast," FMCSA's Ken Riddle broke down the plans like hiring a fraud team and launching a partnership with Ideamia for ID verification by 2025. Freight fraud vigilante Dale Prax praised the agency for reducing fraudulent registrations, citing he’s seen a “massive improvement” from FMCSA. These improvements include auditing all current registrants and eliminating MC numbers, streamlining registration with enhanced oversight, especially for hazmat carriers, ensuring safer and more transparent operations.
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A significant port strike is set to begin on October 1st, potentially affecting over 30 ports along the East and Gulf Coasts. This comes at a time when import volumes are surging:
High Import Volumes: The National Retail Federation forecasts 25 million TEUs (Twenty-foot Equivalent Units) for 2024, a 12.1% increase from 2023.
August Surge: August imports are up nearly 16% compared to the same period in 2019.
With more goods arriving than ever, a port strike could have amplified effects. If the strike happens and lasts a while, it could lead to significant delays and a spike in demand once operations resume, as backlogged shipments work their way through the system.
Hurricane Helene
Although freight demand in the Southeast is currently low, Hurricane Helene is gaining strength and could:
Cause shipping delays.
Increase the need for inbound freight to support recovery efforts.
Impact oil rigs in its path, potentially leading to temporary shutdowns and a slight rise in fuel prices.
Market Overview
The freight market has been stable throughout August and early September, following the usual seasonal patterns.
There's also a lot of capacity available. Carriers are sticking to their contracts even with low rates, which helps keep rates stable and reduces the chance of major market swings in the near future.
Cross-Border Freight
Canada: After a brief rail strike that lasted less than a day, operations are back to normal. The market is stable and is expected to stay that way into early Q4.
Mexico: In some regions, rates are dropping because capacity is loosening up.
Reefer: Capacity is tightening along the Atlantic Coast, causing regional rate increases. With the holiday season approaching, expect higher demand in areas like the Pacific Northwest and Upper Midwest.
Flatbed: Demand for flatbed services is steady, and rates are following typical seasonal trends. As construction projects wrap up before winter, rates are expected to soften.
Freight Market Outlook
The Federal Reserve recently cut interest rates by 50 basis points for the first time in four years. While this probably won't affect freight demand right away, future rate cuts could boost consumer spending in 2025, which might increase freight volumes.
At the moment, demand is stable, capacity is abundant, and rates are likely to mirror what we saw in 2023. Even though the potential port strike and Hurricane Helene could cause some regional bumps, significant changes in the overall market aren't likely in the coming months.
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McLeod CEO Tom McLeod at the 2024 McLeod Software User Conference. Image Source: Jade Brasher/FleetOwner
📊 McLeod's Seasoned Freight Forecast. Software CEO Tom McLeod offers pragmatic economic outlook based on four decades of freight cycle observations, providing industry-wide insights.
🔄 TIA Leadership Change. Christopher Burroughs, long-time government affairs VP, appointedas new president and CEO of Transportation Intermediaries Association, succeeding Anne Reinke.
📺 Driver Sentenced for Netflix Crash. David Herring, a distracted truck driver, was sentenced to five years in prison for the fatal crash that sandwiched a car between two semi trucks as he streamed a show on Netflix.
🧀 Officials Charged in Crash Looting. Three county officials are facing charges for allegedly stealing fuel, cheese, and meat from wrecked semi-trucks during crash investigations they were overseeing.
📈 RXO Gains S&P Backing. RXO secured S&P support after two major sales of company stock, further fueling its acquisition of Coyote Logistics as an excellent strategic growth move.
🎣 THE FREIGHT CAVIAR JOB BOARD
NOW HIRING:The AGL Group is looking for a Domestic Business Development Representative in Jacksonville, FL. If you or someone you know may be interested in this position, you can apply directly from our freightjobs.co job board.
I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
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