🎣 Southern Snowstorm Freezes Freight

Happy Hump Day. A lot of you in the South are waking up to a rare sight as snow blankets much of the region. Today's feature covers the snowstorm and its impact on freight and safety.

Plus:

• 🚨 Trump's Trade, Panama Canal, & Energy Update
• 📈 Warehousing Giant Exceeds Expectations
• 📉 Decline in Asia-US Shipping Rates
• & more...

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚨 Trump's Trade, Panama Canal, & Energy Update. President Trump announced plans to impose a 25% tariff on imports from Mexico and Canada, possibly starting February 1. He stated, “We’re thinking in terms of 25% (levies) on Mexico and Canada, because they’re allowing a vast number of people over the border.” The president also called Canada a “very bad abuser.” Industries, including motor vehicles, crude oil, and electronics, are likely to be impacted by the new regulations, according to Jason Miller. Trump also reiterated his goal to "take back" control of the Panama Canal, citing unfair fees for U.S. ships. On energy, the administration is reviewing policies favoring electric vehicles. This includes freezing EV charging station funding from the Infrastructure Bill and challenging California's zero-emission mandates, aiming to protect gas-powered vehicle sales.

📈 Prologis Exceeds Q4 Expectations. Prologis, a major real estate investment trust (REIT) specializing in logistics and warehouses, reported strong Q4 results. Prologis earned $1.50 per share in Q4, beating forecasts by $0.11. Despite a slight drop in occupancy to 95.6% compared to last year, leasing activity surged post-election, with total leases up 6.4%. “Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point,” said Hamid Moghadam, Prologis CEO. Prologis remains optimistic about the market’s growth potential, supported by ongoing customer demand.

📉 Decline in Asia-US Shipping Rates. Container shipping rates from Asia to the U.S. have fallen during the slower pre-Lunar New Year season:

• West Coast: Rates dropped 10% to $5,321 per FEU (Forty-Foot Equivalent Unit, a standard 40-foot shipping container).
• East Coast: Rates dipped 3% to $6,715 per FEU.

The decline is driven by early shipment activity and increased competition among carriers. Rates might rebound after Chinese New Year (January 29th) if backlogs arise, though this is less likely for Asia-Europe routes. Tariff uncertainties and disruptions in the Red Sea are adding to market instability. Long-term rate recovery depends on adjusting capacity, but oversupply could push prices to loss-making levels, similar to late 2023, according to Judah Levine from Freightos.

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Southern Snowstorm Freezes Freight Movement

A rare snowstorm swept across the Southern U.S., bringing record-breaking snowfall and dangerously icy conditions from Texas to the Carolinas. Tragically, the storm has claimed at least 10 lives, with authorities reporting accidents and exposure-related fatalities.

For an area unaccustomed to such extremes, the storm is wreaking havoc on transportation, logistics, and public safety.

Snow Hits Unlikely Spots

The Gulf Coast bore the brunt of the storm, with snow totals breaking records in several cities:

• New Orleans: 8 inches, more than tripling the previous record.
• Mobile, AL: 7.5 inches, shattering its 1973 record.
• Pensacola, FL: 7.6 inches, topping the 1954 record.

Houston, Savannah, and Charleston also saw significant snow and ice, with conditions expected to remain treacherous through Thursday as melting snow refreezes.

Freight & Road Disruptions

The storm has paralyzed major transportation corridors. The WeatherOptics Road Conditions Index rates several key routes as “extreme risk” for accidents and closures:

• I-10 (Houston to Tallahassee): Rated High to Extreme Risk (7.0 - 9.0) due to heavy snow, sleet, and significant ice-over risks, especially in Florida. Dangerous conditions are expected to persist beyond the storm’s peak as snow and ice linger on roads.
• I-40 (Little Rock to Memphis): Facing moderate delays from sleet and freezing rain, with icy patches making travel hazardous.
• I-55 (Jackson, MS to Memphis): Heavy snow and ice accumulations are causing a High Risk of accidents and closures.
• I-95 (Brunswick, GA to I-26): Rated Moderate to High Risk (6.0 - 7.0) due to heavy snow, sleet, and freezing rain. Hazardous travel conditions will linger post-storm.
• I-75 (Macon, GA to Lake City, FL): Moderate snowfall and freezing rain have created a Moderate to High Risk (5.0 - 7.0) corridor.
• Houston I-69 Crash: Black ice caused a crash involving four semi-trucks on I-69 in Houston, severely impacting freight movement. Delays are expected as crews work to clear the scene.

Black ice in Houston causes I-69 crash involving four semi trucks

An unusual winter storm in Houston caused a wreck involving four semi trucks on black ice on Tuesday morning. The incident happened at about 3:30

CDLLifeWimberly Patton

Freight movement along these routes is delayed, with last-mile delivery operations in cities like New Orleans, Savannah, Houston, and Tallahassee severely impacted. Officials urge drivers to avoid travel unless absolutely necessary.

What This Means for Trucking

Supply chain delays are piling up as the storm disrupts freight across the Southeast:

• Frozen freight hubs: Major logistics centers like Houston and Mobile are struggling to clear roads and resume operations.
• Ripple effects: The storm’s impact could extend beyond the region, delaying shipments nationwide.
• Preparation gaps: The South’s lack of snow-clearing infrastructure exposes a vulnerability to extreme weather events.

A Changing Climate or Just a One-Off?

According to the National Oceanic and Atmospheric Administration (NOAA), the storm is tied to a polar vortex event bringing Arctic air deep into the South. While rare, events like this are becoming a topic of interest in climate discussions.

Studies suggest polar vortex disruptions may become more likely due to climate change. Regardless, trucking companies will need to adapt to unpredictable weather patterns to avoid costly delays.

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🌎 AROUND THE FREIGHT WEB

🚚 BGSA Conference. Top freight CEOs are gathering in West Palm Beach, FL, today through January 24 for the BGSA Supply Chain Conference. This invite-only premier event will focus on advancements in the supply chain sector.

📞 Broker vs. Double Broker. Here’s a funny recording of a phone call between a broker and a double broker.

🔥 Battery Fire. A charging lithium-ion battery caused a fire that destroyed a family-owned trucking business in Wisconsin. It took seven fire departments and over 100,000 gallons of water to extinguish the flames and hot spots.

🤖 Walmart Embracing Automation. Walmart is increasing its automation efforts and selling its advanced systems and robotics as part of an agreement with Symbotic. This initiative aims to enhance online order pickup and delivery services.

⚖️ Tyson Explosion Update. Georgia senators are pushing for answers on the Tyson plant explosion that tragically claimed the life of a trucker’s wife.

🎣 THE FREIGHT CAVIAR CORNER

• Conferences: Time is running out! In less than a month, Manifest: The Future of Supply Chain & Logistics will bring together 6,000+ attendees and 350+ speakers across 150+ sessions in Las Vegas for the industry’s most anticipated event. Save $200 on the current registration rate ($600 off on-site) here.
• FreightCaviar Podcast: This week on The FreightCaviar Podcast, NFL start turned Brokerage CEO Desmond Clark shares how outsourcing, mindfulness, and smart strategies transformed his business. Catch it now on YouTube, Spotify, or Apple Podcasts.
• Find Shippers Fast: Looking for customers? Check out Shipper CRM, the world's largest shipper database, and apply for access here.

FREIGHT MEME OF THE DAY