The 10-4 | December 2024

Welcome to The 10-4, ContainerPort Group’s monthly newsletter designed for transportation professionals like you. Named after the ubiquitous, affirmative radio code - it's packed with key freight news, market trends, trucking insights, and updates from the CPG team to keep you ahead in the the dynamic world of freight.

Whether you’re tackling challenges or seeking fresh inspiration, we’re here to keep you informed and moving forward. Let’s dive in!

 📰 This Edition at a Glance:

• Industry Watch: Updates on potential tariff hikes, automation standoffs in port contract talks, and looming rail strikes threatening supply chains.
• Surging Imports: Containerized volumes expected to stay elevated amid labor and tariff concerns.
• ILA - USMX Contract Dispute: What's at stake in the negotiations?
• TPM25 Countdown: We're proud to sponsor TPM25! Join us on the Promenade Deck, Mar. 2-5.
• Exciting News: CPG named one of Women In Trucking’s 2024 Top Companies for Women.
• Ready to Partner for Your 2025 RFP: We’re eager to support your new season’s transportation needs—let’s work together to create a strong proposal.

Industry Watch:

🚨 Tariffs Poised to Drive Up Prices, Disrupt Trade

Managing the impact of tariffs is no small task. President-Elect Trump's proposed tariffs on goods from Canada, Mexico, and China could raise U.S. consumer prices by up to $2,400 annually per household, fueling inflation and straining supply chains. Retaliatory tariffs could further escalate tensions, impacting U.S. exporters and global trade relationships. Read more at CBS News and MarketWatch.

🤖 Automation Standoff Intensifies in Port Contract Talks

Negotiations between the ILA and USMX stalled again this week as automation remains a key sticking point ahead of the Jan. 15 deadline. The ILA opposes semi-automation proposals, citing job security concerns, while USMX argues modernization is critical to meet future supply chain demands. Trade groups warn continued delays risk prolonged disruptions and backlogs across East and Gulf Coast ports. Read more at Supply Chain Dive and follow negotiation updates here.

🚂 Potential CN Rail Strike Threatens U.S. IPI Shipments

Unifor, representing over 3,600 CN Rail employees, has authorized a strike if no agreement is reached by January 1, following stalled negotiations over wages, pensions, and job security. A strike could disrupt intermodal (IPI) rail shipments into the central U.S., delaying freight, increasing costs, and forcing shippers to seek alternative routes. Read more at Reuters.

Containerized Imports Surging Amid Labor and Tariff Concerns

With uncertainty looming over a potential East and Gulf Coast longshore strike and new tariffs proposed by the incoming Trump administration, U.S. ports are bracing for a surge in containerized imports. Shippers are rushing to frontload cargo ahead of these disruptions, a trend highlighted by the National Retail Federation (NRF) and Hackett Associates' Global Port Tracker. This frontloading could have far-reaching consequences for the drayage and intermodal sectors.

🚢 A Look at the Numbers:

The latest import numbers from October continued the trend of sustained YoY gains across in total TEU imports. Some regional highlights for the month included:

• Port of Long Beach: Processed 987,191 TEUs (+31% YoY), marking its strongest month in its history, driven by holiday demand and delayed shipments.
• Port of Los Angeles: Handled 905,025 TEUs (+25% YoY), with volumes expected to rise due to labor concerns and tariff fears.
• Georgia Ports: Processed 494,261 TEUs (+10% YoY), despite ongoing cargo diversions to the West Coast.
• The Ports of Virginia and the PONYNJ experienced slight pullbacks YoY in October, but posted strong gains in September in the lead up to ILA strike action.

2024 has seen volume gains across the board relative to 2023:

The broad surge is expected to maintain momentum into early 2025, reflecting the urgency with which shippers are moving goods. Key projections include:

• January: 2.2 million TEUs (+12% y/y)
• February: 1.87 million TEUs (-4.1% y/y) – reflecting the impact of Lunar New Year factory closures in Asia
• March: 2.17 million TEUs (+12.7% y/y)
• April: 2.15 million TEUs (+6.6% y/y)

This spike in volumes could burden existing infrastructure capacity, placing a strain on both port operations and inland transportation networks.

💡 The Impact of Import Container Congestion on Drayage

As container volumes surge and capacity challenges impact transportation carriers across the board, early collaboration with CPG is more critical than ever. Here’s how we can help navigate these market-wide disruptions:

Market Challenges:

• Major Capacity Constraints: Several key markets—Atlanta, Savannah, Charleston, Jacksonville, Houston, Memphis, and Chicago—are already facing significant capacity constraints.
• Compounding Challenges: Preparations for a potential ILA strike and import tariffs are further tightening the market.
• Industry-Wide Impacts: These issues affect all carriers and customers across the supply chain.

How We Support You:

• Mitigate Congestion Risks: Early planning with CPG minimizes delays caused by port and rail bottlenecks.
• Maximize Fleet Preparedness: Advance coordination ensures optimized fleet and driver availability for your needs.
• Enhance Visibility and Communication: Proactive collaboration keeps your supply chain running smoothly and and all stakeholders informed.

With CPG as your partner, you can confidently overcome these challenges and keep your freight moving seamlessly. Let’s plan ahead together.

What's at Stake in the ILA - USMX Contract Dispute?

As master contract negotiations stall once again, the International Longshoremen’s Association and the United States Maritime Alliance remain locked in a battle over automation that could reshape port operations across the East and Gulf Coasts. The debate surrounding modernization and automation is intensifying as both sides aim to balance technological advancements with job security - the critical issue leading into the mid January deadline.

With the deadlock reignited, what are the implications of a potential second strike?

In October, the ILA ended a three-day strike after striking a tentative deal with USMX for a significant pay increase and extended contract talks through January 15th. While this pause offered relief to businesses and consumers alike, the impact of another strike could reverberate with greater severity across the US economy.

What’s at Stake?

• Port Power: East and Gulf Coast ports handle over 50% of U.S. imports and exports. A prolonged strike could mean empty shelves, price spikes, and economic losses reaching billions daily.
• Pay Raises: ILA workers at major ports like New York/New Jersey could see annual pay climb to $500,000 by the end of the next contract period under current offer agreed upon to end the strike in October.
• Modernization Showdown: U.S. ports rank among the least efficient globally. Modernizing infrastructure is critical, but union resistance over job security risks keeping the U.S. supply chain stuck in the past.

Projected Impact of Another Strike:

• A prolonged strike could lead to shortages and price increases on essentials like groceries, clothing, and electronics, impacting workers and families nationwide.
• Each strike day causes nearly a week of economic disruption, with estimates that another ILA strike could cost the economy $3.8 billion to $4.5 billion per day.
• Small and medium-sized businesses, already challenged by years or elevated inflation and tight margins, would feel the greatest economic strain.

The Bottom Line

As negotiations heat up, the stakes are high—not just for the industry, but for every worker, business, and consumer relying on a steady flow of goods to keep our economy in motion. Recent comments from  President-Elect Trump emphasized the importance of protecting American longshoremen from the economic impacts of automation and foreign profits. His remarks highlight the ongoing stakes in the ILA negotiations, underscoring the need for solutions that prioritize American workers and supply chain stability.

With Trump assuming office on January 20th, industry experts are anticipating a strike from at least the 16th through the early days of the new administration, assuming they can help broker a deal. The shifting political landscape and threat of tariffs has a bumpy road in store for supply chains in the new year.

Stay up to date on contract developments here.

🎉 ContainerPort Group Named a Top Company for Women to Work in Transportation

We’re proud to share that ContainerPort Group has been recognized as one of the Women In Trucking Association’s 2024 "Top Companies for Women to Work in Transportation!"

This honor highlights our dedication to creating a workplace where women thrive, with a strong focus on gender diversity, a supportive culture, and career development. We’re excited to stand among industry leaders fostering inclusivity and advancing opportunities for women in transportation. 📖 Read more on our blog.

CPG's Alex Frye Wins ATA's Inaugural Women In Motion Recognizes Award

Keeping on the theme of women in trucking, we're also thrilled to share that CPG's Alexandra Frye has been named an inaugural recipient of the Women In Motion Recognizes Award by the American Trucking Associations!

This award embodies the strength of a supportive community, fostering inclusivity in transportation. It honors women entering the industry, driving innovation, and making meaningful impacts as leaders and advocates.

Congratulations, Alex, on this great achievement! Learn more about the award here.

🚛 Your 2025 Transportation RFPs

As you begin planning for your upcoming 2025 transportation RFPs, we’d welcome the opportunity to be considered as a participating carrier. Could you share any timelines, requirements, or additional details about the process? Our team would love to prepare a proposal that truly aligns with your operational and strategic needs.

Ready to get started? Connect with us to share any information and let’s explore how we can support your upcoming contract season.

Thank You for Catching Up!

Thank you for catching up with this edition of The 10-4! Be sure to follow us on LinkedIn as well—we’re here to keep you informed and ready for what’s next in transportation and logistics. Stay tuned for more updates and insights in 2025 —until then, Happy Holidays!