Supply Chain Industry Insights – January 2025

Industry Insights

January 2025

By PGL

Welcome to the PGL Industry Insights report for January 2025.

Truckload markets are experiencing a surge in tender rejection rates, the highest in two years, indicating increased reactivity. Intermodal markets are thriving, with double-digit volume growth driven by strong import levels.

Ocean freight faces uncertainty due to added capacity in 2025 and the threat of tariffs. Pre-Lunar New Year demand has boosted trans-Pacific container rates, with Asia-U.S. West Coast rates up 23% per container and East Coast rates up 13%.

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative six-year agreement, avoiding a potential strike. The deal allows terminal operators to implement semi-automated technology while guaranteeing jobs for union workers linked to the new equipment. A 62% pay increase agreed upon after an October 2024 strike is contingent on the final contract ratification.

Houthi rebels announced they will cease attacks on merchant shipping and Israel following a ceasefire between Israel and Hamas. Ocean carriers are closely monitoring the Red Sea situation, with only CMA CGM maintaining a Suez Canal route.

Diesel prices have risen sharply, reaching just over $3.70 per gallon, the highest since August. The 11.3-cent increase is the largest weekly gain since February, partly driven by shipping disruptions in the Red Sea. This is a big turn–around after steadily decreasing prices over the last half-year, though the price is still well short of the $4.00 threshold.

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.