Numbers at a Glance

$3.70

February 2025

Current National

Diesel Fuel Average

+0.3%

JAN 2025 UP FROM DEC 2024

U.S. Truckload Spot Rate

Spot Truck Posts

+27.4%

JAN 2025 UP FROM DEC 2024

U.S. Truckload Spot Rate

Spot Load Posts

This Month's Top Stories

ILA Contract Vote to be Held on Feb. 25

 

Read the Full Story Here

The International Longshoremen's Association members set to vote on new master contract covering East and Gulf Coast ports on Feb. 25.


The ILA's wage scale committee approved the tentative six-year agreement the union reached with the United States Maritime Alliance in early January allowing the ratification vote to move forward.

Proposed agreements from the ILA in the contract include the following:

  • There will be no fully automated terminals and no fully automated equipment during the term of the agreement.
  • Port operators now will have to engage with the ILA earlier prior to purchasing any software, hardware or equipment to discuss potential impacts and negotiate agreements.
  • No new technology will be implemented until the parties mutually agree to manning levels and workforce protections. There will be no reduction in manning or hours due to implementation of technology.

This vote comes in response to the expiration of the previous master contract which was previously extended to Jan. 15 in response to the tentative deal struck after the three-day strike in October disrupted port operations.

Winter Truckload Spot Rate Slide is

Becoming a Seasonal Pattern

 

NTI.USA via SONAR

National Truckload Index (NTIL) drops 10% since Jan. 13. Dry Van tender rejection falls to 5.3% as of Feb. 6. Likely a result of higher holiday peak.


"Higher seasonal peak gives more room for rates to fall," states Market Analyst Zach Strickland over on Freight Waves. In the post pandemic market, we have seen much more muted peak seasons around Christmas and the Fourth of July, from 2023-24 the NTIL peaked at $1.80, this year it peaked at $1.98. Rejection rates mirrored this trend having hit above 5% in late 2023 but reached nearly 9% this past December. This leads to more potential for significant softening as we are now seeing. Despite rapid declines in spot and rejection rates, the broader market trajectory remains tighter pointing toward increased volatility in 2025. Seasonal downturns are expected, higher peaks seen in recent months suggest future fluctuations will likely be more exaggerated.

Read the Full Story Here

 

LTL Carriers Optimistic for Freight Market Turnaround in 2025

Carriers start to see some indicators for a better LTL Market in 2025.


For the first time in two years, freight volumes are expected to grow in the U.S. by an estimated 1.6 percent per the American Trucking Associations projections on Jan. 16. The freight market is expected to normalize after years of stagflation thanks in large part to the pickup in the industrial economy in terms of shipment count and increased tonnage as well improvements seen in the macro backdrop and pricing, according to ArcBest Chief Financial Officer, Matt Beasley, over on Transport Topics.

Analysts are also anticipating more carriers will exit the market rebalancing the supply-demand equation. Rates are expected to go up in the later part of the year as well.

Furthermore, LTL carriers will have less to worry about with incoming tariffs compared to the truckload sector due to lower cross-border exposure.

Read the Full Story Here

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Tariffs on Mexico and Canada Moving

Forward on March 4th


As reported on earlier this month, President Trump previously delayed implementing tariffs on Canada and Mexico by one month while those countries address illegal immigration and fentanyl flowing into the U.S., tariffs moving forward on 3/4.


As of Monday, 2/24, the President has stated that the 25% tariffs on Mexico and Canada will be moving forward as scheduled. Only a 10% tariff will be placed on energy from Canada. The initial postponement of earlier this month came after agreements were made with both Canada and Mexico to enhance border security. Both countries have promised retaliatory tariffs on U.S. goods.

Read the Full Story Here

 

Koch Logistics Updates

 

Check out MATTER here!

Koch Cares Team Partners with MATTER

Members of the Koch Cares Team volunteer with local NGO, MATTER, to put together hygiene kits and snack packs for those in need.


Employees from several Koch Companies divisions came together late last month to work with MATTER in St. Louis Park, MN to put together support boxes for those in need. Since 2002, MATTER has distributed more than $772 million in restorative aid impacting millions of lives around the world.



Thank you, Koch Cares team, and thank you MATTER for having us out to take part in such a impactful cause!

 
 

www.kochlogistics.com

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