PRIMO LEADING NEWS
WEEK FEBRUARY 19TH TO FEBRUARY 24TH, 2024
In 2023, trade between the US and Mexico increased by 2.5% year-over-year to $798 billion, and now, Mexico is emerging as the top US trading partner for the second time in recent history. The port of entry in Laredo, Texas, became the No. 1 international trade gateway in the US, handling most of this cross-border commerce. Such growth will hasten demand for logistics partners with boots on the ground in Mexico and throughout the US. PRIMO is well-suited to handle this demand with our continental coverage and strong roots in Mexico and Latin America.
Contrary to expectations, US imports in January surged by 7.9% from December and 9.9% year over year, marking the largest month-over-month growth for January since 2017. This increase was largely due to a rise in Chinese imports ahead of the Lunar New Year. With mounting demand, there’s an inherent risk in the stability of capacity and asset utilization within the states. Shippers should be vigilant of changing demand, particularly among key ports of entry. PRIMO’s coast-to-coast network can help with finding available solutions and capacity as needed.
Recent expert data shared by FreightCaviar points to a steady growth trend within the truckload market in the latter half of 2024. Spot rates are expected to surpass contract rates by the end of March, leading to a return to carrier-favorable conditions. In response, shippers should expect gains across transportation costs and need to consider new partnerships to keep rates in check. PRIMO works tirelessly to bring real-time data and rates to the marketplace through our strategic partnerships to assist with spot and contract demand.
The national average diesel price topped $4 for the first time in 10 weeks, with a significant increase of 21 cents to $4.109 a gallon. This marks the biggest one-week surge since a 22.2 cents increase observed in July. The price increase is attributed to refinery issues and tight diesel supply. Such gains may lead to increased fuel surcharges for shippers. PRIMO’s monitoring the situation and working to help shippers reduce expenses where possible, such as leveraging more LTL services when FTL isn’t necessary.
New Jersey’s new law requiring a minimum insurance coverage of $1.5 million for larger trucks allows for umbrella insurance coverage to meet this requirement, rather than mandating it for every individual truck. This approach is seen as a major victory by the Insurance Council of New Jersey (ICNJ). The change reignites the need for strong carrier vetting practices, and PRIMO is already ahead of the curve by ensuring our carriers are the correct provider for each and every load. While this isn’t the same coverage as cargo insurance, it does highlight the importance of choosing a partner that’s well-versed within the space. PRIMO’s in-house cargo insurance means we have teams of insurance experts that can work to ensure our carriers have the right level of coverage across all possible forms.
Seabound, a UK-based company, has successfully tested its novel carbon capture technology on a commercial container ship, capturing up to 95% of CO2 emissions. This breakthrough demonstrates the potential for reducing shipping industry emissions, contributing to ~3% of global emissions. The new technology is a step toward making it easier for shippers to rest assured that their value chains are actively working to reduce carbon emissions. This process is historically difficult at best. PRIMO, while primarily based around inland transportation, actively works to reduce emissions by selecting and optimizing the most fuel-efficient routes by land. This often involves an intermodal step, the lowest carbon-emitting form of transportation. It’s a win-win and a move toward a sustainable future.