Diesel Update: The average price of diesel decreased by 4.8 cents a gallon. Putting the average price of diesel at $3.727, per the U.S. EIA.
Mixed bag this week around the nation, the Midwest region was down 6.2 cents, USWC was down 3.7 cents, the USGC was down 6.7 cents, and the USEC was down 1.5 cents.
Tariffs:
Trade negotiations continue between the U.S. and other countries, but in an interview over the weekend on Fox News President Trump said he does not expect to extend the 90-day pause on tariffs on most countries beyond the original July 9th deadline. Additionally, as AP News reports, the administration will inform countries that the trade penalties will take effect unless deals are in place.
Intermodal: Canadian Pacific Kansas City (CPKC) is continuing efforts to stabilize rail operations in the southern U.S. after a systems integration, but the focal point of delays has now shifted from Texas to key hubs in Louisiana and Mississippi.
The initial congestion began in early May in Laredo and Wylie, Texas, after a systems upgrade of CPKC transitioning Kansas City Southern’s legacy platforms to the CP network. As service in Wylie continues to recover, new chokepoints have been brought to light in Shreveport, Louisiana, and Jackson, Mississippi. This has caused some disruptions in the movement of freight between Mexico and the U.S. Southeast, per JOC reports.
Capacity: Starting next month, Port Houston will be implementing some fees in order to address the excessive dwell times for reefer containers at the port, the JOC reports. The fees begin on July 1st and kick in after one week of free time for most cargo. These new fees also override the current sustained import dwell fee (at $45/day after one week).
Regulatory: The Department of Transportation (DOT) recently announced a new federal grant program ($275m) that will strengthen truck parking and prune regulations. More details can be found, here.
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