The freight market has recently experienced a wave of positive developments, offering much-needed relief to stakeholders after a challenging year. Despite a generally soft market, LTL carriers have reported increased shipments, signalling resilience in the sector. Meanwhile, optimism is growing around the ongoing negotiations between the ILA dockworkers union and ports across the US East and Gulf coasts, with hopes for a favorable resolution.
These and other encouraging news stories on the industry in this edition of The Collaborative Logistics newsletter. Let’s dive in.
LTL Carriers Defy Soft Freight Market, Increase Shipments in Q2
Despite a soft freight market, major US LTL carriers continue to find shipments in unyielding situations, reporting increased shipment volumes, especially in the second quarter of 2024.
This increase in demand is attributed to several factors, including gaining a larger share of existing customers’ business, diversifying services, and expanding terminal networks. LTL carriers like XPO increased daily shipment by 4.5% year over year in the second quarter. Saia saw Q2 LTL shipments per day rise 18.1% year over year. It was the same for Old Dominion Freight Line (ODFL), which saw a 3.1% increase, while Knight-Swift Transportation Holdings saw an 8.4% increase in earnings.
Maersk CEO Says Strike is “Highly Unlikely”
Despite ILA’s threat of a strike action by dockworkers along the US East and Gulf coasts come October 1, Maersk CEO Vincent Clerc believes a strike is “highly unlikely.”
Clerc expressed optimism about reaching an agreement without a strike and anticipated a contract extension. Despite the ILA’s ratcheting tensions, he also played down fears of port shutdowns across the Eastern seaboard and Gulf Coast. However, if a strike does occur, it could cause significant congestion and delays in a major trade route. This situation adds further uncertainty to the already volatile US trade lanes, especially during the peak season.
Lineage IPO Offering is The Largest of The Year
Lineage, the world’s largest refrigerated storage company, has successfully raised $4.4 billion in its initial public offering (IPO), marking the largest IPO of the year so far.
The company’s shares opened at $82, a $4 increase from the IPO price, and it closed at $80.78. Lineage operates a vast network of temperature-controlled warehouses. Its growth has been driven by increasing demand for cold storage and an aggressive acquisition strategy. With the successful IPO, the logistics industry generally stands to benefit, and experts believe it revitalizes the market and highlights the company’s significant position in the industry.
J.B. Hunt’s Partnership Completes 50,000 Autonomous Trucking Miles
J.B. Hunt Transport Services Inc., Bridgestone Americas, and Kodiak Robotics have completed over 50,000 autonomous trucking miles without any accidents.
The collaboration has achieved 100% on-time pick-up and delivery so far. It uses Kodiak autonomous trucks to ship Bridgestone tires between South Carolina and Dallas, but it leverages J.B. Hunt’s 360box network for return trips to prevent empty miles. The partnership demonstrates the effectiveness of the middle-mile autonomous delivery model and showcases the potential for rapid and sustainable growth in autonomous trucking. Bridgestone’s investment in Kodiak and smart-sensing tire technologies further strengthens the initiative’s impact on the industry.
MSC Now The Largest Ocean Carrier, Ahead of Maersk
At the end of July, MSC’s market share in the global container fleet reached a record high of 19.8%. The company has aggressively expanded its fleet through new building orders and acquisitions, now surpassing Maersk as the largest carrier. This growth includes significant orders for new builds that will further boost its capacity by 2028.
While Maersk has opted to cap its fleet size, other carriers like ZIM, ONE, and Hapag-Lloyd have also increased their market share. The top 10 carriers dominate the market, accounting for nearly 84% of global operating capacity. Despite CMA CGM’s planned expansion, it’s expected to remain behind MSC’s capacity until 2028, as MSC continues to solidify its position at the forefront of the industry.
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