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New Year, New Market: January 2025

January 14, 2025

The Axle Advantage, Monthly Newsletter

Monthly
News

ILA, USMX to Restart Contract Talks Ahead of Deadline for Possible Port Strike

As we move into the New Year, the ILA and USMX are set to resume contract negotiations on Tuesday, January 7, just over a week before the current contract extension expires on January 15.

Disagreements remain regarding automation. The ILA has expressed support for modernization but not at the cost of jobs. In a statement, they said: “For over 13 years, our position has been clear: we embrace technologies that improve safety and efficiency, but only when a human being remains at the helm. Automation, whether full or semi, replaces jobs and erodes the historical work functions we’ve fought hard to protect.” ILA Union

The USMX, however, stated that they are not seeking technology that would eliminate jobs. In their response, they said: “What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses.” USMX Negotiations Updates

Market
Forecast

Expect weakening spot rates and increased capacity as we move into January. First-quarter conditions are typically favorable for shippers as the market exits the Q4 period of increased demand and limited supply caused by the holiday season.

FTR’s Trucking Conditions Index reached its strongest level since April 2022, with a reading of 3.02. A base of 0 represents neutral market conditions, while positive numbers indicate a favorable market for carriers.

Truck rates were the primary driver behind the increase in the index for the month. Market conditions are projected to remain favorable for carriers, particularly during and after Q2.

Speak to your Axle Logistics Consultant to understand how the market is impacting your specific industry and business!

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