Category Archives: Industry Insights

PGL had a great month of September. Take a look at some of the moving parts.

• We celebrated Labor Day and World Maritime Day.
• PGL sponsored the Freeman Golf Tournament in Chicago as well as Tee It Up For The Troops in North Texas.
• Please help us welcome Kris Rostan, PGL’s new Director of Commercial Strategy and Operations.
• Plus, a recap of the key moments that impacted the supply chain in September.

That’s it for now. We’ll see you next month and, as always, PGL is here 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Industry Insights

September 2024

By PGL

Welcome to the PGL Industry Insights report for September 2024

We start with news about the the benchmark diesel price used to calculate most fuel surcharges, which rose last week for the first time in 10 weeks, with the price rising to just over $3.50 per gallon, still well below the 4 dollar mark where the price usually hovers over the last few years.

In Asia, the typhoon season has been more destructive than normal, having significant impact on port operations. The Atlantic Ocean and Gulf of Mexico are in for a continued rough season as well, as we soldier on through a season that’s been forecasted to be tougher than most. For example, the World Trade Bridge in Laredo, Texas, the busiest U.S.-Mexico commercial crossing in the nation was forced to shut down temporarily on September 14 due to hurricane Francine causing a roof collapse in the customs area and Hurricane Helene has beared down on Florida and the East coast just this weekend.

In labor news, International Longshoremen’s Association East and Gulf Coast dockworkers are threatening to strike on October 1st. Bargaining talks broke down months ago, and at the time of this recording, talks have still not restarted.

On September 18, the US Department of Justice filed a claim for over $100 million against the owner and operator of the Dali, the container ship that struck the Francis Scott Key Bridge in March. A DOJ representative described the incident as “an entirely avoidable catastrophe”.

Continued hostility in the Red Sea is having a dramatic impact on insurance rates, especially for vessels with ties to the US, UK and isreal. Some coverage is available, but insurance companies are becoming more selective and imposing rising costs and restricted options for shipowners.

In Intermodal news, US rail is performing well with container and trailer volume up 13.% year over year. You’ve just taken a big step to being more informed.

Subscribe to our channel to make sure you get the latest supply chain insights. As always, PGL will be here to keep you informed 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.

PGL had a great month of August. Here’s a glimpse at some of the moving parts.

– We celebrated National Aviation Day and attended the ACPC in Dallas, Texas.

– Check out our latest Warehouse Walk with Dalton Wolf as he highlights PGL’s hospitality services with Global Sales Executive, Natalie Cannon.

– Plus, a look at the key insights and events that shaped the supply chain in August.

That’s it for now. We’ll see you next month and, as always, PGL is here 24/7/365.

Stay tuned for next month’s update! #shipPGL

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Industry Insights

August 2024

By PGL

Welcome to the PGL Industry Insights report for August 2024

The Houthi-rebels have struck again. Sounion, a Greek-flagged oil tanker carrying 150,000 tons of crude oil across the Red Sea, exploded when Houthi rebels attacked on August 21, with fires still visible almost two weeks later, sparking fear of environmental disaster. If a spill occurs, it could be the worst oil spill in history. The Sounion is the third vessel operated by Athens-based Delta Tankers to come under Houthi attack this month. The militants said Delta Tankers had violated their ban on “entry to the ports of occupied Palestine”. The Houthis continue to target tankers, with two hit with ballistic missiles and a drone on Monday.

August has brought a surge in ocean freight rates, driven by an early peak season demand, coupled with congestion and ongoing labor issues at major ports. Despite shipping lines rolling out new vessels, the capacity is struggling to keep pace. Initially, rates are expected to stay high, but there’s some good news on the horizon – they might start to ease as the month progresses.

In Europe, we’re seeing strong import growth, particularly from China, fueled by the e-commerce boom. However, while rates from Asia to Europe remain steep, rates from Europe to other regions have seen a decline. Plus, new inland infrastructure developments in the UK are set to enhance supply chain efficiency, especially with the opening of Maersk’s inland container depot in the Midlands Freeport Zone.

But it’s not all smooth sailing – geopolitical tensions, particularly in Ukraine and the Middle East, and an above-average hurricane season in the Atlantic pose significant risks to the supply chain. These could lead to delays and increased costs across the board.

On the labor front, an order was issued on August 24 from the Canada Industrial Relations Board imposing binding arbitration between the Company and the Teamsters Canada Rail Conference. This action voided the pending strike and requires that no labor stoppage can occur during the arbitration process.

Those in the trucking industry also face some challenges. Driver shortages and rising fuel costs are driving up transportation expenses and causing delays. New emissions regulations are pressuring companies to upgrade their fleets, but the high costs and slow adoption of automation and electric vehicles are adding to the strain.

As of today the diesel benchmark price has remained steady at $4.2 per gallon, following a significant increase from last week. This stability contrasts with recent volatility in the futures market, where ultra-low sulfur diesel prices saw fluctuations.

In a landscape as complex as this, staying agile and well-informed is key. Subscribe to our channel to make sure you get the latest supply chain insights. As always, PGL will be here to keep you informed 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.

PGL had a great month of July. Here’s a glimpse at some of the moving parts.

– PGL sponsored the 2024 EAF Auction and Golf Tournament, the 4th Annual Southwest Airlines MDW Tech Ops Charity Golf Outing for Caring Patriots, and Ronald Mcdonald House for Kids.

– Check out our first Warehouse Walk with Dalton Wolf as he discusses PGL Recruiting with VP of sales development, Blake Fletcher.

– Plus, a recap of the key moments that impacted the supply chain in July.

That’s it for now. We’ll see you next month and, as always, PGL is here 24/7/365.

Stay tuned for next month’s update! #shipPGL

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Industry Insights

July 2024

By PGL

Welcome to the PGL Industry Insights report for July 2024.

The gulf coast got it’s first taste of the NOAA’s predicted “aggressive” hurricane season in early June, as Hurricane Beryl rocked the Texas coast on July 8, leading to multiple temporary port closures and at least 20 Houston area deaths.

A new bill proposed by Representative David G. Valadao introduced the bipartisan Safeguarding our Supply Chains Act to combat organized cargo theft. The bill aims to improve coordination between the Department of Homeland Security and the FBI, establishing the Supply Chain Crime Coordination Center and a Supply Chain and Theft Task Force.

In Ocean Freight, spot rates are soaring, driven by continued hostilities in the Red Sea and limited capacity. We’re about halfway through the traditional busy summer in preparation for the holiday season, so it will be interesting to see how this plays out.

There is trouble brewing in Canadian rail labor, as Canada’s Minister of Labour asked the board to decide on maintaining critical shipments during a work stoppage, delaying potential strikes by the Teamsters Canada Rail Conference to August 9th.

In trucking, reporting has shown a lack of capacity growth for the first time in two years. This could be an indicator of normalization for the trucking industry, leading to fewer empty trailers and stabilization of pricing.

The diesel benchmark price has fallen a bit after 4 weeks of increases, but still short of the $4.00 mark. With high inventory and lowering demand, speculation is pointing to lower prices ahead.

Lastly, with a supply chain industry that seems to be contracting, PGL is growing and hiring. If you are a logistics operator or sales representative, we want to hear from you!

As always, PGL will be here to keep you informed and will keep delivering peace of mind, 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.

PGL had a great month of June. Here’s a glimpse at some of the moving parts:

– Sponsored the 2024 Freeman Invitational Golf Tournament

– Celebrated World Environment Day, International Supply Chain Day, Father’s Day, and National Logistics Day

– June Industry Insights

Stay tuned for next month’s update! #shipPGL

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Industry Insights

June 2024

By PGL

Welcome to the PGL Industry Insights report for June 2024

Good news for the embattled Baltimore shipping channel as it was fully re-opened on July 10th, almost 3 months after the fateful bridge collision that was caused when the container ship Dali lost power.

In labor news, on June 11, the Union representing more than 9,000 Canadian border agents reached a tentative agreement that avoids a potential strike. Meanwhile, things are heating up on the Gulf and East Coasts as the International Longshoreman’s Association threatens action, canceling negotiations as the current contract is set to expire at the end of September of this year.

In the Red Sea, a second ship has been sunk by Houthi rebels in the campaign that has seen over 60 attacks since November. The U.S. Defense Intelligence Agency said that container shipping through the Red Sea has declined by 90% since December.

The Benchmark Diesel Price Index moved up for the first time in 10 weeks with the Department of Energy average weekly retail diesel price climbing 7.7 cents a gallon to $3.735 in mid-June. This is still well below the 4.00 per gallon mark last seen in early April. There aren’t a lot of apparent factors that explain the increase beyond the reported US inventories of over 114 million barrels, the highest reported since February.

NOAA released its May hurricane forecast and it incudes a warning to prepare for a potentially “hyperactive” season. The shipping industry is being cautioned about severe disruptions that could impact all modes of transportation, especially trucking and ocean transport in the gulf coast and eastern seaboard. This could mean significant changes to pricing, shifting the leverage that shippers have had over carriers over the last 5 quarters.

That’s it for this month’s Industry Insights Report. We’ll see you in July and, as always, PGL will be here to keep you informed and will keep delivering peace of mind, 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Welcome to the latest edition of the PGL monthly newsletter!

PGL had a great month of May. Here’s a glimpse at some of the moving parts.

We introduced our new user-friendly interface, PGL Connect, powered by Logixboard. Now you can easily keep track of what matters.

We celebrated Mother’s Day, National Defense Transportation Day, Armed Forces Day, Supply Chain Professionals Day, National Maritime Day, and Memorial Day.

Plus, a look at the key insights and events that shaped the supply chain industry in May.

Stay tuned for next month’s update! #shipPGL

Follow us at @shipPGL and visit our website at www.shipPGL.com.

Industry Insights

May 2024

By PGL

Welcome to the PGL Industry Insights report for May 2024.

We begin this month’s report with unexpected good news from gulf ports such as Houston, New Orleans and Mobile, where stronger-than-expected consumer demand is being cited for increased cargo volume in March with growth around 20% higher than last year.

Things aren’t quite as rosy for trucking. While April numbers were better than expected, the end of the great freight recession isn’t here yet. Low first quarter earnings were reported for most carriers though demand has remained stable. High operating costs and high capacity seem to be the largest contributors for this troubled sector.

Increased reliance on intermodal has also contributed to woes in trucking, though we’re seeing that in shorter-haul lanes such as the East Coast, the much more competitive rates are keeping intermodal from taking as big of a bite out of the trucking industry.

Since August of last year, we’ve been reporting on how the diesel benchmark price has continued to defy expectations, spending much of that time below the $4 per-gallon threshold, and the last month has been no exception, as the price index has consistently dropped, leading to $3.85 cents per gallon in the latest report.

In air freight, the ongoing tensions around the Red Sea have continued to boost air cargo volume with double-digit growth year over year every month so far in 2024.

That’s it for this month’s Industry Insights Report. We’ll see you in June and, as always, PGL will be here to keep you informed and will keep delivering peace of mind, 24/7/365.

Follow us at @shipPGL and visit our website at www.shipPGL.com.