We continue to monitor several ongoing issues.

First, the Port of Baltimore has been reopened which will stabilize the volume of traffic in neighboring ports like New York, New Jersey, Norfolk, and Philadelphia, reducing congestion and delays.

Second, attacks in the Red Sea continue to affect shipments from China, Greece, Turkey, and Egypt, resulting in longer transit times, blank sailings, capacity constraints, equipment shortages, and increases in ocean freight from these regions.

Third, the U.S. hurricane forecast for 2024 states a potential 25 named storms, with a normal season bringing around 14 named storms. If this forecast pans out, it could have a severe impact on the trucking market, causing disruptions in service, capacity, and a spike in rates.

Fourth, vessel traffic has increased from 24 to 32 daily vessels in the Panama Canal due to the impact of the rainy season. The Panama Canal Authority expects vessel traffic to increase to 33 daily by July 11 and 34 daily by July 22.

The ILA strike threat continues. If a new contract is not in place by the end of September, they may choose to strike, which could cause delays for both import and export for 12 - 45 days at the minimum. The East and Gulf ports are most likely to be affected by a potential strike.

Delays caused by any of the above situations may impact the production schedule from suppliers, inventory shortages, and overall additional costs related to the transport and storage of goods.