This week, significant events shaping the logistics and trade landscapes include the recovery efforts following the Francis Scott Key Bridge collapse in Baltimore, disrupting key trucking routes and impacting shipping flows. Meanwhile, Mexico sees a substantial influx of investments, with companies reallocating their supply chains and establishing new manufacturing facilities south of the border, reflecting a strategic shift towards nearshoring. The Panama Canal’s struggle to rebound from a severe drought highlights the vulnerability of global shipping routes to climate phenomena. Additionally, the dip below $4 a gallon for U.S. diesel prices for the first time in eight weeks signals a momentary relief for truck drivers amidst fluctuating fuel costs. Lastly, the jump in rail dwell times in the Los Angeles/Long Beach complex due to an import surge underscores ongoing challenges in managing increased cargo volumes. Read the full articles for detailed insights into these developments.
Weekly Freight Report: April 5, 2024
April 5th, 2024
Baltimore Preps Small, Temporary Channel for Essential Vessel Transit
Following the collapse of the Francis Scott Key Bridge, Baltimore is establishing a temporary channel to facilitate the transit of essential vessels as part of the initial steps to reopen the Port of Baltimore.
Investment Surges in Mexico as Companies Shift Supply Chains, Plan New Factories
Mexico experiences a significant surge in investment, receiving commitments worth over $31 billion in early 2024, as companies globally look to establish manufacturing and supply chain hubs in the country.
Baltimore Bridge Collapse Pressures Some Key Trucking Lanes
The collapse of the Francis Scott Key Bridge following a cargo ship collision significantly impacted key trucking lanes in Baltimore, with flatbed load volumes surging by 57% and rates on some routes increasing notably.
Panama Canal Will Need Rest of Year to Recover From Drought
The Panama Canal is expected to take the remainder of the year to recover from a severe drought in 2023 that significantly affected water levels and vessel traffic, with anticipated rains from La Niña providing essential relief.
US Diesel Averages Drop Below $4 a Gallon for 1st Time in 8 Weeks
For the first time in eight weeks, the average U.S. diesel price has fallen below $4 per gallon, marking a decrease across all regions, with the lowest prices recorded along the Gulf Coast.
Import Surge Shines Light on Dynamics Behind Jump in LA/LB Rail Dwells
The recent report by the Pacific Merchant Shipping Association highlights a significant increase in rail dwell times at the Los Angeles/Long Beach complex in February, attributed to a surge in imports at the beginning of the year.
