Market Updates: July 9th, 2024

Domestic Market Updates –

Diesel Update: Another week, another increase for the average price of diesel. This week that price is up 5.2 cents a gallon to $3.865, per the U.S. EIA. 

Intermodal: The International Longshore and Warehouse Union (ILWU Local 1514) issued a 72-hour strike notice against DP World Canada that was set to start on July 8th at 6:30pm CST. However, that is not set to happen due to the Canada Industrial Relations Board (CIRB) ruling that strike vote by the union was illegal due to the union “failing to bargain in good faith when conducting a strike vote.”  

Intermodal: Border agents in Canada have ratified a new contract, which will last through June 2026. This comes after a tentative agreement was reached on June 11th, after nine days of mediation. The new contact includes wage increases and provisions for shift scheduling and leave time.

Weather: Hurricane Beryl has made landfall in Texas. According to Freightwaves, Ports in Houston, Corpus Christi, Galveston, Freeport and Texas City paused operations and vessel traffic after the Coast Guard issued the condition “Zulu” which states all vessel movement and cargo operations are restricted, per Freightwaves. Port Houston put out an update Monday afternoon saying all Port Houston terminals will remain closed Tuesday 7/9/24. They will put out another update later today, regarding operations on Wednesday.

As we’ve noted in the past, when a hurricane is expected “there’s usually huge demand for freight to be moved before it hits. This leads to very high rates and tightens capacity.” When a hurricane or tropical storm does hit, it can create delays or have truckers reroute out of the storm’s path.  

Infrastructure: U.S. West Coast ports Los Angeles and Long Beach are investing millions in charging infrastructure for EVs. Trucking interests have been asking for more investments into charging infrastructure in order to comply with rigorous zero-emission regulations in the future.

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