The Axle Advantage, Monthly Newsletter
Axle
Logistics
Key Trends
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ILA/USMX to resume talks 1/7/25
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FTR demand forecasts ease across equipment types
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Seasonality hits the Spot Market in December
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
Trends
Supply Update
Numbers released by the Federal Motor Carrier Safety Administration show 4,297 new trucking authorities issued, while revocations of authority totaled 4,528. This resulted in a net decrease of just 231 trucking firms.
Over the past four months, the average monthly decline has been only 327 for-hire carriers. In contrast, in 2023, the monthly average decrease was 1,755 carriers.
Demand Update
Forecast numbers from FTR for 2025 loadings were notably lower in the most recent update. FTR’s 2025 forecast for total truck loadings shows an increase of 1.1% year-over-year (y/y), down from a 1.7% increase in the previous release.
Slower growth in food loadings has led to reduced projections for both Dry Van and Refrigerated loadings. Dry Van is now forecasted to grow by 1.1% y/y, down from 1.7%, while Refrigerated loadings are projected to grow by 2.9%, down from the previous estimate of 3.4%.
Market
Trends
Rate Update
Dry Van spot market rates rose to a 2024 high in the closing weeks of the year as normal seasonality took effect. Refrigerated rates also showed strong gains throughout the month.
Van rates ended the month 5.7% higher than at the start ($2.20/mi in week 53 vs. $2.08/mi in week 49), while Refrigerated rates were 3.9% higher ($2.61/mi in week 53 vs. $2.51/mi in week 49).
Spot rates are expected to ease in the coming weeks as the holiday season winds down.
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!
The Axle
Advantage
Our Team
Axle Logistics wrapped up an unforgettable year with our 2024 Christmas Party: Miami Nights! We celebrated in style, honoring an incredible year of achievements, presenting the Axle Awards, and officially marking a major milestone, hitting $1 billion in revenue and growing. None of this would be possible without the support of our amazing team, along with our incredible client and carrier partners. The future is limitless, and we’re just getting started. Cheers to 2025 and everything ahead!
#AxleImpact
As we close out 2024, we reflect on a year filled with meaningful connections and giving back.
The community means so much to us at Axle, and we’re proud to have supported and served in 106 community events throughout the year. From local partnerships to hands-on volunteering, the Axle team continues to make an impact where it matters most. Here’s to carrying this spirit of service into 2025 and beyond!
Did you know?
The first week of January is one of the busiest times in the logistics industry as businesses race to restock inventory after the holiday rush. This surge in activity requires efficiency, precision, and reliable partnerships to keep supply chains running smoothly.
At Axle Logistics, we’re here to help you navigate this critical time and set the pace for a successful year ahead.
Connect
With Us!
Contact
If you have questions about current market conditions or would like more information, connect with our team today!