Category Archives: Industry Insights

Industry Insights

December 2024

By PGL

Welcome to the PGL Industry Insights report for December 2024

Season’s greetings from all of us here at PGL. We hope you have a wonderful holiday and a prosperous 2025 ahead of you!

We start this month’s report with news that the uptick in rail freight continues with intermodal volume up almost 10% this year over 2023. This was buoyed somewhat by an uncharacteristically large slump the week of Thanksgiving, but volume is still up for the year, and there are indications that it will continue to perform well in the new year.

In ocean freight, Labor tensions and political uncertainty with regard to future tariffs kept late November container rates to the US high, with Asia-to-US rates well over $5,000 per FEU and heading up. Forecasters are identifying both the West and Gulf Coast ILA labor fight as well as trepidation surrounding the unknown timing and overall impact of proposed tariff increases as factors for shippers to try to beat these issues to the punch, increasing volume and therefore, cost, ahead of what should prove to be an impactful January.

Speaking of the current ILA labor issues, President-elect, Donald Trump has commented repeatedly in recent days that he backs the Union’s stance to block port automation. It is unknown how this may affect the big picture, or how a long-term work stoppage would be received by the administration. PGL will keep an eye on how this develops ahead of the January 15 negotiation deadline.

Twice this month, US warships successfully defended three US-flagged merchant ships in the Gulf of Arden. The Destroyers were able to intercept several different ballistic and cruise missiles that were launched by the Houthi rebels that have been hunting vessels in the Red Sea for over a year.

After a tiny bump at the beginning of the month, benchmark diesel price dropped again, going below its lowest point in over three years that was hit in November. Early this month, OPEC+ held a meeting that led to an extension of the production cuts that were due to be adjusted for higher volume in December. The futures market remains bearish, with no signs of increasing prices on the horizon.

That’s it for this month’s report. 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 December. Take a look at some of the moving parts.

PGL sponsored the 4th Annual Freedom Mobility Foundation Golf Tournament.

Shoutout to PGL’s ORD Station for giving back to the community with Toys for Tots.

Plus, a recap of the key insights and events that impacted the supply chain in December.

Don’t forget to watch the Armed Forces Bowl happening Friday December 27! We wish you all a Merry Christmas and a Happy New Year. Happy Holidays from PGL, available 24/7/365.
 
Follow us at @shipPGL and visit our website at www.shipPGL.com.

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

We partnered with MTU Maintenance and TALA to deliver unmatched support and innovation in the aerospace industry.

We honored those who have fought for our freedom on Veterans Day.

PGL was a proud sponsor of the seventh annual Spirit Open charity golf tournament, which raised over 1.2 million dollars benefiting the Spirit Airlines’ Spirit Charitable Foundation.

We are also proud to sponsor the 2024 Lockheed Martin Armed Forces Bowl! Tune in on Friday December 27th for a great football matchup.

Plus, a recap of the key insights and. Events that impacted the supply chain in November.

Thanks for watching! We’ll see you next month and, as always, PGL is here 24/7/365. #GoPGL

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

Industry Insights

November 2024

By PGL

Welcome to the PGL Industry Insights report for November 2024.

We start this month’s report with news that the Environmental Protection Agency’s Clean Ports Program has awarded 3 billion dollars to 55 ports across 27 states to secure new electric drayage trucks and cargo handling equipment, as well as the changing infrastructure to accommodate the new additions. This effort should make ports more efficient and have a positive impact on the environment.

In labor news, on November 14th the Canada Industrial Relations Board ordered all parties to resume operations after the International Longshore and Warehouse Union Ship & Dock Foremen union began a November first strike, followed by a subsequent lockout. A binding arbitration process is underway to resolve outstanding issues.

In the Boeing strike, the International Association of Machinists and Aerospace Workers union ended labor stoppage after 53 days with the approval of a new contract.

As we’ve reported before, 2024 is shaping up to be a strong year for intermodal freight, as according to a recent report from the Association of American Railroads, 2024 intermodal volume is up 9% over last year.

The benchmark diesel price dropped again this month, reaching its lowest point in over three years, just below the $3.50 mark.

The futures market remains undecided on the heels of a Trump presidential win, but expectations of decreased regulation and an intention to “drill baby drill” may keep prices low.

That’s it for this month’s report. 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 an exciting month of October, full of growth and new connections! Here’s a peek at what we’ve been up to:

• We kicked off the month by celebrating National Trucker Appreciation Day – a big shoutout to the truckers who keep things moving!
• PGL was honored to sponsor the Annual “Tee It Up For The Troops North Texas Golf Tournament” in Farmers Branch, TX, in support of our veterans.
• Our team also joined industry leaders at MRO Europe, building connections and staying on top of the latest in our field.
• And we’re making major strides in warehousing! We expanded our Grand Prairie, TX location with an additional 100,000 square feet of space and teamed up with MTU Maintenance to open their brand-new warehouse in Fort Worth, TX.
• Plus, a recap of the key moments that impacted the supply chain in October.

Thanks for watching! We’ll see you next month and, as always, PGL is here 24/7/365. #GoPGL

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

Industry Insights

October 2024

By PGL

Welcome to the PGL Industry Insights report for October 2024

The month had a turbulent start with the International Longshoremen’s Association East and Gulf Coast dockworkers strike that began on the first of October. Work quickly resumed on October 3rd as a tentative agreement was reached between the ILA and United States Maritime Alliance with 61% pay raise and contract extension for the 45,000 dock workers. Talks will continue to resolve outstanding issues that will hopefully be sorted out and ratified by union members by the January 15, 2025 deadline.

The promised heavy storm season is certainly delivering, with Hurricanes Helene and Milton storming the East coast in quick succession. These storms provided the expected hardships of fuel shortages, flight cancellations and general mayhem for the logistics industries. Rail was particularly hard-hit, forcing the closure of the Norfolk Southern Line into Asheville, North Carolina for at least 3 months to rebuild after Hurricane Helene, and 10 ports in Florida and Georgia were forced to temporarily close after Hurricane Milton.

On the West coast, the Port of Los Angeles saw record volume in September of over 950,000 TEUs in September, a 27% increase over last year, leading to an all-time volume high of over 2.8 million TEUs in the third quarter. Experts point to rising consumer confidence and shippers avoiding the Suez Canal as main contributing factors to this boom.

The benchmark diesel price experienced one of its biggest yo-yo months in recent memory with a large spike early in the month and projected higher futures, followed swiftly by the largest one week drop in almost a year. Continued high production in the US as well as speculation that OPEC will increase production in 2025 are contributing to the price drop.

That’s it for this month’s report. 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 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.