New York trucking group says Manhattan tolls burden industry

Monday marked the first weekday since the implementation of the first-of-its-kind congestion pricing program in New York City by Gov. Kathy Hochul, a move that is drawing protests from the Trucking Association of New York.

The program imposed tolls for entering or exiting Manhattan’s “congestion relief zone” starting Sunday. This zone covers streets and avenues at or below 60th Street, excluding the bordering West Side Highway, FDR Drive and Hugh L. Carey Tunnel main roads.

Hochul has said the tolls are designed to unclog street traffic, reduce pollution and better deliver public transit to millions of New Yorkers. Opponents argue the program penalizes residents and small businesses already struggling with high inflation.

The governor put the congestion pricing plan on pause “indefinitely” after it was proposed last May. But it was revived in November with toll prices reduced by 40%.

Under the new program, “small,” one-unit trucks will pay $14.40 to enter the area, while “large” two-unit trucks will be charged $21.60. Regular toll rates apply from 5 a.m. to 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends, and a 75% cheaper overnight toll outside those time frames aims to encourage off-hours truck deliveries.

Legal battles

TANY has been one of several vocal opponents of the tolls. The trucking association of over 550 member companies attempted to block the congestion pricing program from going into effect by suing the state government last year, arguing that truck drivers would bear the brunt of the tolls.

The organization continued litigation after the plan was resurrected in November, and it’s involved in ongoing legal proceedings. Several other lawsuits – including one filed in federal court by neighboring New Jersey – have recently lost appeals to block the program from implementation, NorthJersey.com reported.

TANY President Kendra Hems told FreightWaves in an emailed statement Monday that the group is closely monitoring the congestion pricing program’s impact on the trucking industry and New York residents.

“While reducing congestion is a shared goal, we have concerns about the program’s effectiveness and fairness,” Hems said. “The $21.60 per-trip charge for trucks, compared to a once-per-day fee for passenger vehicles, disproportionately burdens the trucking industry, which delivers 90% of goods New Yorkers rely on. Trucks have no choice but to enter the zone as you cannot deliver freight via the subway.”

Hems said TANY is focused on mitigating these impacts to “help keep the city affordable, as increased costs on delivering goods will ultimately affect consumers.”

“We will also closely monitor whether congestion pricing achieves its stated goal of reducing traffic or merely shifts the burden in ways that exacerbate economic challenges,” she said.

But Hochul defended the program after its legal wins.

“Despite the best efforts of the State of New Jersey trying to thwart New York’s ability to reduce congestion on our streets while making long-overdue investments in public transit, our position has prevailed in court on nearly every issue,” she said in a Dec. 30 news release. “This is a massive win for commuters in both New York and New Jersey. Now that the judge has issued his ruling, the program will move forward this weekend with a 40 percent reduction in the originally proposed cost of the toll.”

FreightWaves has reached out to Hochul’s office for additional comment on the tolls.

Hurting small business?

The tolls are affecting TANY Chairman Joe Fitzpatrick’s own business.

The New Jersey native has operated his small delivery business – Lightning Express Delivery Service – in New York for over 20 years now. What started as a business out of his basement has grown to 30 employees operating eight box trucks, three tractor-trailers and several cargo vans.

But that growth is threatened by tolls that he says would add to others already eating up $8,000 a month in operating expenses for his business.

“This was our niche delivering lighting fixtures into New York City,” Fitzpatrick said in a phone interview with FreightWaves. “… I know they tried after hour delivery programs [to reduce toll costs outside of regular hours], but it doesn’t work in the construction trade. You’re talking about bringing in, whether it’s steamfitters to get their deliveries after hours or Sheetrockers, and then you’re talking about people who do live in the building. They’re going to have to hear all that noise? And then you’re also talking about all that expense on the building owner [who’s] going to have to have nighttime security all night long.”

These costs, Fitzpatrick said, will all be passed on to the consumer.

Fitzpatrick said other business owners he’s spoken with have considered moving operations out of New York. While he said that isn’t an option for him – he has his employees and a warehouse in nearby Gardiner that he won’t leave behind – he understands why they would do it.

“There’s all these other unavoidable fines or tickets,” Fitzpatrick said. “If it’s going to cost me a couple hundred dollars to maybe deliver one or two skids, is it really worth it? How do you pass that on to the consumer? Maybe a bigger trucking company like a UPS or a FedEx can withstand that. I know of small companies like myself, and I’ve talked to a lot of owners my size or a little bit bigger [have] all said the same thing: Either they really have to reconsider how they do business in New York, or just not even do it.”

“You just can’t keep kicking people while they’re down,” he continued. “They always say, ‘The USA was built on small business [and] small business is the backbone of America.’ Well guess what? I just got kicked in the back.”

How are you impacted?

Do you live in New York City or drive regularly through the congestion relief zone? FreightWaves is working on another story diving into the impact of New York City’s new congestion pricing plan on business owners and drivers in the area.

Email writer Caleb Revill with your experience and opinions on the tolls at Caleb.Revill@firecrown.com.

Former FMCSA deputy hired by AI trucking company Plus

Autonomous trucking company Plus has hired former Federal Motor Carrier Safety Administration Deputy Administrator Earl Adams to lead the company’s public affairs and safety advocacy efforts and to advise the company on regulatory developments.

“After nearly a decade on our autonomous journey, we are on the brink of commercializing autonomous trucks,” said Plus CEO and co-founder David Liu in a news release. “Earl’s unmatched experience in transportation policy and his ability to connect diverse stakeholder groups will be instrumental to the next phase of our growth.”

Adams assumes the role held previously by Wiley Deck, another former FMCSA deputy administrator, who left the company.

“I am excited to join Plus and work closely with partners, regulators, and other stakeholders to ensure a smooth path to safely launch autonomous trucks and make our roads safer for everyone,” Adams commented.

“Plus has built a winning position as the autonomy partner of choice to global commercial vehicles makers like Traton Group, Hyundai and Iveco. I am excited to join Plus and work closely with partners, regulators, and other stakeholders to ensure a smooth path to safely launch autonomous trucks and make our roads safer for everyone.”

While deputy administrator at FMCSA under former administrator Robin Hutcheson, Adams led the team in drafting safety rules for autonomous commercial vehicles and served as its liaison to the office of the transportation secretary’s autonomous working group. He also served as the FMCSA’s chief counsel.

Prior to joining Plus, Adams was a partner at the law firm Hogan Lovells, where he led the firm’s autonomous vehicle working group.

The Biden administration “was focused on leveraging technology to get safer outcomes” in developing autonomous vehicle regulations, he told FreightWaves in an interview last year.

“We were willing to establish guardrails – that is, an actual rule – as opposed to letting the industry dictate what would happen, and I spent the better part of my two and a half years in the administration trying to develop those guardrails.”

Click for more FreightWaves articles by John Gallagher.

Jump in benchmark diesel price biggest since June

The benchmark diesel price used for most fuel surcharges rose Monday by more than any increase since June.

The Department of Energy/Energy Information Administration average weekly retail price climbed 5.8 cents a gallon to $3.561. It was the highest increase since a more than 7-cents-a-gallon rise on June 17. But after that increase, the benchmark was $3.735, 17.4 cents more than the price posted Monday.

The increase follows several days of trading in the ultra low sulfur diesel (ULSD) contract on the CME commodity exchange that have significantly pushed up the futures price of ULSD.

From a settlement on Dec. 26 of $2.2053 a gallon, the price of ULSD rose over five trading days to settle Friday at $2.36. It pulled back slightly Monday to settle at $2.3552.

While futures moves don’t immediately impact retail prices, they do have a quick effect on wholesale prices. The rate of effect on those wholesale numbers and retail prices is not a firm relationship and could take weeks to play out.

Along with that increase in the outright price is a notable change in the spread between the first- and second-month contracts on the ULSD contract.

That spread has been in a structure known as contango for months. (FreightWaves data is incomplete on the second month settlement and how long the contango was in place.)

In a contango, the second-month settlement has a price higher than the first month. In a perfectly balanced market relative to supply and demand, this is the normal structure, as the higher cost for later-month delivery – for example, July relative to June – reflects the cost of storage and the time value of money.

A price for an “out” month does not reflect what traders believe prices will be when that month rolls around on the calendar. Rather, it is a complex brew of interest rates and the cost of storage, but more importantly, it is a signal of the level of inventories.

The inverse of a contango is called backwardation. In a backwardation, “out’ months are higher, and one of the reasons is a tightening of inventories. The tighter the inventories, the more demand there is for product to be delivered sooner rather than later.

Settlements on the ULSD contract the last three trading days of last week – New Year’s Eve as well as Thursday and Friday – flipped into backwardation. The second-month settlement for Monday’s market was not immediately available, but the data suggests it remained in backwardation to start the week.

The irony is that the move to backwardation – suggesting tighter inventories – came as the EIA last week reported a significant build in inventories for all distillates including diesel, but excluding jet fuel, which is also a distillate. That figure rose to 122.9 million barrels from 116.5 million barrels the week before, putting it solidly above recent averages for this time of year.

Yet the contango/backwardation flip suggests tightening inventories, though the ULSD market will reflect what is going on with global distillate and other petroleum markets, not just those in the U.S.

Diesel continues to be a strong performer in the petroleum complex on CME relative to other contracts: domestic WTI crude, international crude benchmark Brent and RBOB gasoline, an unfinished gasoline blend whose price serves as a proxy for gasoline prices. The petroleum complex also tangentially includes Henry Hub natural gas.

The spread between ULSD and Brent, comparing just first-month prices and converted to cents per gallon, got over 54 cents a gallon last week and was just under that level Monday. It was under 37 cents as recently as September and until its latest breakout had, with a few single-day exceptions, been under 50 cents a gallon for most of the fourth quarter.

Diesel may be reacting to cold weather after several warm winters that are not showing signs of a repeat performance in the U.S. or Europe this year.

That fact is highlighted by developments in the natural gas market. Natural gas at Louisiana’s Henry Hub moved above $3 per thousand cubic feet (Mcf) in November and nearly settled above $4 per Mcf in December. Monday’s settlement of $3.672 per Mcf compared starkly to the settlement on the first trading day of 2024: $2.514 per Mcf.

More articles by John Kingston

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Story behind Firecrown’s purchase of EnterTRAINment Junction; Blair blasts freight | WHAT THE TRUCK?!?

Story behind Firecrown’s purchase of EnterTRAINment Junction; Blair blasts freight | WHAT THE TRUCK?!?

On episode 788 of WHAT THE TRUCK?!? Dooner is joined by Firecrown / FreightWaves’ CEO and founder Craig Fuller to talk about his latest acquisition: the largest train set in the world.

We’ll find out how Fuller saved EnterTRAINment Junction’s exhibits and his plans to bring the Museum of Motion to Chattanooga, TN.

Plus, Blair blasts freight, a look at the market, and somehow Trevor Milton returned.Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

Russia’s oil future dims as US mulls new sanctions

In its final days, the Biden administration is poised to impose a new round of sanctions on Russian oil exports, marking a significant escalation in efforts to curtail Moscow’s energy revenues.

These sanctions — targeting tankers, traders and insurance companies involved in the transport of Russian crude oil — are set to accelerate the reshaping of global oil supply chains, with possible headwinds for the shipping industry.

A long-awaited crackdown

The latest U.S. sanctions package is rumored to be expansive, encompassing two Russian oil companies and more than 100 tankers, as well as oil traders and Russian insurance firms. U.S. Treasury Secretary Janet Yellen has indicated that the sanctions net may widen even further, potentially including Chinese banks involved in facilitating Russian oil trades.

At their core, the sanctions would aim to enforce the $60-per-barrel price cap on Russian oil, a measure agreed upon by the G7 coalition, the European Union and Australia in 2022. This measure came as part of a broader strategy to limit Russia’s ability to fund its ongoing military operations in Ukraine, while still trying to minimize further disruptions to global energy markets.

Lars Barstad, CEO of Frontline Management, one of the world’s largest publicly listed oil tanker operators, has raised alarm over the growing “dark fleet” of unregulated vessels used to circumvent these sanctions.

“All these vessels are trading outside the [U.N.’s] framework,” Barstad stated, highlighting the risks associated with these operations. “They have been sleeping behind the wheel now for quite some time in respect of tankers.”

Russia’s “dark fleet” is a shadow network of aging ships, with intentionally obscure ownership, that operate outside international maritime regulations. These vessels, estimated to make up about 20% of the world’s oil tanker fleet, pose significant safety and environmental risks.

Barstad warns further, “I think it’s only a question of time until we get a big one” — in other words, a major maritime disaster.

In fact, Russia is currently contending with an ecological catastrophe in the Black Sea, following an oil spill that prompted a state-of-emergency declaration in Crimea.

The incident, which occurred in mid-December, involved two aged oil tankers that succumbed to a storm, releasing heavy M100-grade fuel oil into the sea — a type notorious for sinking rather than floating, complicating clean-up efforts. Authorities have cleared over 86,000 metric tons of contaminated sand and soil thus far, employing more than 10,000 responders in a large-scale effort to mitigate environmental damage.

The fallout has already proved severe, with notable losses of marine life such as dolphins and seabirds.

Shifting sands

The threat of additional sanctions, coupled with Europe’s growing interest in enforcing those already in effect, marks another decisive moment in the long-standing relationship between Russia and European energy markets.

The recent cessation of Russian gas transit through Ukraine, effective Jan. 1, 2025, symbolizes the end of an era and underscores the shifting dynamics of global energy trade, as the U.S. has rallied to grow its share of the European market.

The implications of these sanctions on global supply chains are far-reaching: Oil prices, a weighty factor in freight costs, are likely to face increased volatility. While the current market shows signs of oversupply, with crude prices averaging around $74 per barrel in 2024, the sanctions could lead to short-term price spikes and longer-term realignments in global oil trade patterns.

The pragmatic aim of the G7 sanctions was originally not to eliminate Russian energy exports altogether, but rather to give would-be buyers of Russian oil leverage in negotiating cheaper prices.

But China and India, which have continued to purchase Russian oil at discounted rates, may face increased scrutiny under the coming Trump administration as well as possible secondary sanctions. This could force a recalibration of their energy procurement strategies, potentially opening opportunities for alternative suppliers such as the U.S. and/or Middle Eastern producers.

Shippers pressed to improve compliance

The shipping industry finds itself at the tip of the spear for enforcing the sanctions already in place as well as those to come.

Calls for enhanced regulatory measures and more rigorous inspections of vessels navigating important maritime pathways are growing louder. Critics argue that European governments have historically been reluctant to fully enforce existing regulations, often citing the potential for increased energy costs as a deterrent to implementing stricter enforcement.

This perceived lack of resolve has led to accusations of allowing economic considerations to overshadow critical safety, geopolitical and environmental concerns.

As the industry seeks to answer these critics with action, the long-term impacts on global energy strategies are becoming clearer. Europe’s aggressive pursuit of alternative energy sources, including American gas and supplies from Norway and Algeria, suggests a fundamental shift away from Russian energy dependence.

This painful transition, while challenging for already-fragile economies in the short term, should lead to a more diversified and resilient global energy market.

Forward Air’s board exploring options, may sell company

A Forward Air tractor trailer driving by an airport terminal

Forward Air said Monday its board has initiated a strategic review, which potentially includes selling the company or entering a merger agreement. The update comes after months of public criticism from investors, who have called on the company to engage in a sale process following its contested merger with freight forwarder Omni Logistics.

Investors have pointed to “misguided capital allocation” and poor oversight as the reasons for the Greeneville, Tennessee-based trucking company’s current financial troubles. FreightWaves reported in October that the company had retained investment bankers to explore a sale.

Forward’s (NASDAQ: FWRD) problems began shortly after it announced the acquisition of Omni in August 2023. The deal was structured through a series of transactions allowing it to circumvent a vote by shareholders, who likely would have shot down the plan given the large price tag and high debt burden the transaction carried. Investors have also railed against the equity interest ceded to Omni’s private equity stakeholders and raised concerns that the vertical integration would scare off Forward’s legacy wholesale customers.

Forward outlined a range of options on Monday but said it has no timeline on when, or if, anything will be done.

The company said it implemented an additional $20 million in cost saving initiatives during the fourth quarter by reducing head count, consolidating operations at terminals and limiting its use of third-party providers. The $20 million in annualized cost reductions is in addition to the $75 million in merger synergies previously announced, which will be realized by the end of the first quarter.

It also reaffirmed Monday its full-year adjusted earnings before interest, taxes, depreciation and amortization guidance of $300 million to $310 million. The recent cost reductions weren’t part of the prior full-year guide and were required for the company to achieve its forecast.

“During the fourth quarter, we implemented the initial phase of our broader transformation strategy to create a truly integrated and go-to solution provider, and I am very pleased with the pace and rigor we are seeing in the early days,” said CEO Shawn Stewart in a news release. “Our initial actions have primarily been focused on structural changes which streamline operations and better support our long-term growth initiatives.”

Stewart took over in late April and has since been tasked with integrating Omni’s freight forwarding platform with Forward’s expedited trucking operations. Stewart replaced Tom Schmitt, who was the architect of the ill-fated merger.

Forward also said Monday it had modified its credit agreement, lowering commitments on its revolving credit facility from $340 million to $300 million. The deal gives it more breathing room on its debt covenant. Net leverage of 6.75 times is now allowed through the 2025 third quarter, stepping down to 5.5 times in the fourth quarter of 2026 and beyond.

The company ended the third quarter at 5.4 times leverage and was facing a 4.5 times bogey by the fourth quarter of this year.

The credit facility could be reduced further, or the company could be required to make a prepayment on its term loans, if net leverage exceeds 6.5 times in any quarter, according to a separate filing with the Securities and Exchange Commission.

“This amendment is intended to provide us with additional financial flexibility to continue executing our transformation and regardless of the outcome of the strategic review process,” said CFO Jamie Pierson. “We sincerely appreciate the support of our lenders and look forward to capitalizing on the tremendous opportunity we have ahead of us.”

Pierson joined Forward in May. He has expertise in financial restructurings including two stints with now-bankrupt Yellow Corp. (OTC: YELLQ).

Goldman Sachs (NYSE: GS) is currently acting as Forward’s financial adviser. The investment banking firm was one of Omni’s advisers on the August 2023 merger. Forward was advised by Morgan Stanley (NYSE: MS) and Citi (NYSE: C) on that deal.

“Under Forward Air’s new leadership team, the Company is making tangible progress executing the Omni integration and delivering on synergy targets ahead of schedule, while stabilizing the business and advancing the early stages of transforming the Company to become a global logistics powerhouse through the implementation of its strategic plan,” said Forward Chairman George Mayes. “Regardless of the outcome of this review, Forward will not waver in its commitment to our customers to deliver consistent high-quality service.”

Shares of FWRD were off 0.4% at 11 a.m. EST on Monday compared to the S&P 500, which was up 1.2%. Shares of FWRD are off roughly 70% since the merger with Omni was announced.

More FreightWaves articles by Todd Maiden:

Why ocean container spot rates are spiking now

Ocean container spot rates have surged in recent weeks, marking a dramatic shift from the volatile pricing environment that characterized much of 2024. After a year of fluctuating rates and uncertainty, shippers are now grappling with rapidly rising costs, particularly on the crucial eastbound trans-Pacific trade lane.

The Drewry World Container Index posted on Thursday showed a 3% week-over-week increase to $3,905 per forty-foot equivalent unit, driven primarily by rate hikes on trans-Pacific routes to both U.S. West and East Coast ports from Asia. Spot rates from Shanghai to Los Angeles jumped 7% or $330 to $4,829 per FEU, while Shanghai to New York rates rose 6% or $371 to $6,445 per FEU.

This momentum builds on gains seen in December. According to Freightos data, rates for containers moving from Asia to U.S. West Coast ports increased 8% to $4,825 per FEU for the week ending Dec. 27, 2024. Asia-U.S. East Coast prices saw a 3% bump to $6,116 per FEU in the same period.

Judah Levine, head of research at Freightos, noted several factors contributing to the rate increases: “Ocean rates out of Asia overall trended up slightly to end the year, but with Lunar New Year approaching and a range of January General Rate Increases (GRI) announced [by ocean carriers] for the trans-Pacific, container prices on these lanes could face upward pressure to start 2025.”

(The Freightos Baltic Daily Index is a daily average of ocean container spot rates; displayed are the China to North America – West Coast and China to North America – East Coast lanes in U.S. dollars per FEU. Chart: SONAR. To learn more about SONAR, click here.)

The surge in rates coincides with robust import activity at major U.S. ports. November volumes at the ports of Long Beach and Los Angeles hit record levels, reflecting a late-year freight surge that has kept ocean container rates elevated on trans-Pacific routes.

Several key factors are driving this import growth and subsequent rate increases. First, shippers are engaging in frontloading ahead of potential disruptions. The looming threat of an International Longshoremen’s Association (ILA) port strike in January 2025 has prompted many importers to accelerate their shipments. Maersk, in an advisory posted on Wednesday, urged customers to “pick up their laden containers and return empty containers at U.S. East and Gulf Coast ports before Jan. 15” in anticipation of possible labor actions.

Importers are also rushing to beat potential tariff hikes under the incoming Trump administration. The combination of these factors has created a surge in demand for container shipping space, allowing carriers to implement and sustain higher rates.

The traditional increase in activity preceding the Lunar New Year, which falls at the end of January in 2025, is further amplifying this trend. Factories in Asia typically close for this holiday, prompting a rush of shipments in the weeks leading up to it.

Looking ahead, industry analysts expect the current rate momentum to continue into early 2025, though with some potential moderation. Drewry forecasts that “rates on the Transpacific trade [will] rise in the coming week, driven by front-loading ahead of the looming ILA port strike in January 2025 and the anticipated tariff hikes under the incoming Trump Administration.”

But Freightos predicts some easing later in the first quarter: “A seasonal decrease in demand starting later in February should see rates ease on the ex-Asia lanes, though Red Sea diversions will keep them elevated well above long-term averages just as they were through 2024,” Levine wrote.

The situation remains fluid, with several factors that could impact rates throughout 2025. The outcome of labor negotiations between the ILA and port employers, potential changes in U.S. trade policy, and the ongoing need for some vessels to divert around the Horn of Africa due to security concerns in the Red Sea could all influence container pricing in the coming months.

As shippers navigate this complex and rapidly evolving rate environment, many are likely to face higher transportation costs in the near term. The ability to adapt quickly to changing market conditions and potential disruptions will be crucial for businesses relying on ocean freight in 2025.

Firecrown acquires EnterTRAINment Junction, plans new interactive transportation museum in Chattanooga, TN

In a move that promises to reshape the landscape of transportation-themed attractions, Firecrown, a leading publisher of transportation and enthusiast titles, has acquired the railroad assets from EnterTRAINment Junction. The company plans to relocate the beloved train exhibits to Chattanooga, Tennessee, as part of an ambitious new transportation museum. Firecrown is the parent company of FreightWaves media.

EnterTRAINment Junction, the popular family attraction in West Chester, Ohio, known for housing the world’s largest indoor train display, closed its doors permanently on January 5, 2025. This closure marks the end of an era for the Cincinnati landmark but opens a new chapter for its exhibits under Firecrown’s stewardship.

EnterTRAINment Junction has long been a cherished landmark, known for its extraordinary scale and intricate design. Spanning an impressive 80,000 square feet, this entertainment center housed the world’s largest indoor train display with one G-scale layout taking up over 25,000 square feet. It was a marvel not only for its size but for its elaborate landscapes and highly detailed train models, each meticulously crafted to captivate both children and adults alike.

While open, EnterTRAINment Junction attracted hundreds of thousands of visitors from across the country annually, entrenching itself as a must-see attraction in Cincinnati. Its family-friendly allure and engaging events, such as Everything Thomas and Christmas at the Junction, fostered a loyal fan base that returned year after year to partake in its unique offerings. Despite its closure, EnterTRAINment Junction’s legacy is set to continue through Firecrown’s ambitious plans in Chattanooga, preserving the magic that entertained so many for nearly two decades.

Craig Fuller, CEO and founder of Firecrown, sees this acquisition as a perfect fit for the company’s vision. “Chattanooga is a world-famous train town, and so we think this fits perfectly in the Chattanooga story but also preserves the legacy built in Cincinnati,” Fuller stated. The move aligns with Firecrown’s status as a category leader in affluent enthusiast media and commerce, particularly in the transportation sector.

The new museum, tentatively named “The Motion Museum,” aims to be more than just a relocation of EnterTRAINment Junction’s exhibits. Firecrown’s plans include expanding the scope to encompass all forms of transportation, including aviation, trucking, and maritime vessels. This broadened focus reflects the company’s diverse portfolio, which includes publications such as FLYING Magazine and various train-focused titles acquired from Kalmbach Media.

There will be a large multi-modal element to the museum, featuring all aspects of freight movement, with plans to triple the size of the intermodal yard and feature a miniature version of the Port of Savannah. Trucking and air cargo will also play a huge part of the theme.

“The Motion Museum will be a destination for the FreightWaves community, providing a fun way to learn about the inner workings of the global freight industry and movement of cargo.” Fuller stated.

Firecrown owns Trains, Trains.com, Model Railroader, Garden Trains, Classic Trains, Classic Toy Trains, and Toy Trains. It also publishes books, operates a streaming TV network, and manages a large e-commerce operation, all dedicated to model railroading. The company also oversees the media operations of aviation, marine, space, and FreightWaves.

Firecrown’s acquisition includes the 25,000-square-foot layout, the Thomas Museum, and the Thomas Outdoor Train, among other assets. The company is committed to preserving these models to the best of their ability while integrating them into a larger, more diverse exhibition.

Fuller and his team aim to have the new transportation museum and indoor theme park operational by the end of 2025 or early 2026. This timeline allows for careful planning and execution of what promises to be a significant addition to Chattanooga’s tourist attractions.

Firecrown also aims to position itself at the forefront of the content-to-commerce model in the transportation and hobby sectors.

The company has a large television and video production business, creating content that spans all forms of transportation, ranging from trains, aviation, trucking, marine, to space. Firecrown has a fishing show on ESPN and specialty streaming TV networks covering trains and freight. The company plans to turn the Motion Museum into an interactive studio, developing content for the enthusiast topics it covers.

As the transportation industry continues to evolve, this new museum and theme park could serve as a hub for both nostalgic reflection and forward-thinking inspiration. It represents not just the preservation of EnterTRAINment Junction’s legacy but also the potential for new educational opportunities and economic impact in the Chattanooga area.

Chattanooga is already a major regional tourism city, hosting attractions like the Tennessee Aquarium, Rock City, Ruby Falls, the Creative Discovery Museum, the Chickamauga Battlefield, and the Tennessee Valley Railroad Museum. Chattanooga is also home to a railroad-themed hotel, The Chattanooga Choo Choo.

The transition from EnterTRAINment Junction to the new Chattanooga-based museum and indoor theme park underscores a broader trend of reimagining traditional attractions for modern audiences. By expanding beyond trains to include various modes of transportation, Firecrown is betting on the enduring fascination with mobility and technological progress.

“Firecrown, Chattanooga, and transportation are all natural fits. We are the largest transportation media platform, located in a large transportation city, and now we will have a large museum dedicated to transportation. This will be a place to celebrate and engage people of all ages in the magical world of transportation,” Fuller stated.

Capacity returns to the road following the holidays

This week’s FreightWaves Supply Chain Pricing Power Index: 40 (Shippers)

Last week’s FreightWaves Supply Chain Pricing Power Index: 40 (Shippers)

Three-month FreightWaves Supply Chain Pricing Power Index Outlook: 40 (Shippers)

The FreightWaves Supply Chain Pricing Power Index uses the analytics and data in FreightWaves SONAR to analyze the market and estimate the negotiating power for rates between shippers and carriers.

This week’s Pricing Power Index is based on the following indicators:

Volumes recovering from holiday drop

The holidays disrupted the flow of freight volumes, especially with both Christmas and New Year’s Day falling on a Wednesday. The result of that is a sizable drop in volumes that has become expected with the seven major holidays: New Year’s, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas, and to a lesser extent, Martin Luther King Jr. Day.

SONAR: Outbound Tender Volume Index — Seasonality View: *2025 (white) 2024 (green) and, 2023 (pink)*
**To learn more about SONAR**, ***click here***.

The Outbound Tender Volume Index (OTVI), a measure of national freight demand that tracks shippers’ requests for trucking capacity, is recovering from the dramatic drop associated with the holidays, rising 19.3% over the past week. It will take at least another week to offset the holiday to paint the true picture of the volume side of the market. Similar to how the market closed out 2024, the beginning of 2025 still lags behind year-ago levels, currently down 6.98% year over year.

The potential for another strike by the International Longshoremen’s Association in less than two weeks, along with the Lunar New Year looming less than a month away, could provide a short-term shot in the arm for volumes. With that said, based on the Inbound Ocean TEU Volume Index, which represents ocean volumes as they depart overseas, it appears less likely as there hasn’t been a significant pull forward like there was this time last year.

SONAR: Contract Load Accepted Volume – Seasonality View: *2025 (white) 2024 (green) and, 2023 (pink)*
**To learn more about SONAR**, ***click here***.

Contract Load Accepted Volume (CLAV) is an index that measures accepted load volumes moving under contracted agreements. In short, it is similar to OTVI but without the rejected tenders. Looking at accepted tender volumes, the increase is greater than the increase in OTVI, due to a decline in tender rejection rates, rising 22.66% week over week. CLAV is still down 9.5% y/y.
Both Mastercard and Visa spending data suggested a strong retail holiday season, with spending up 3.8% and 4.8% y/y, respectively. In a recent Reuters article, retail executives labeled consumers as “cautious” and “conservative,” and if those trends continue into 2025, it could create some pressure from a volume perspective that outpaced GDP growth for much of 2024. Even so, if the industrial side of the economy wakes from its slumber, it could more than offset any potential weakness from the consumer.

*SONAR: Outbound Tender Volume Index – Weekly Change*
**To learn more about SONAR**, ***click here***.

As the market recovers from the holiday season, the vast majority of the freight markets have seen growth in tender volumes over the past week. Of the 135 markets tracked within SONAR, 113 reported higher volumes over the past week. This isn’t a surprise given the impacts of the holidays are still in full swing. The comparisons in coming weeks will be far more representative of true volume changes than those holiday-affected weeks.

The Ontario, California, market, which has been at the top of the volume charts for much of 2024, did see a smaller increase than at the national level as volumes increased by 5.11% w/w. It’ll be interesting to see whether, now that the holidays have passed and freight becomes less time-sensitive, intermodal volumes out of the market move higher and truckload volumes come under pressure during the first quarter.

*SONAR: Van Outbound Tender Volume Index (white, right axis) and Reefer Outbound Tender Volume Index (green, left axis)*
**To learn more about SONAR**, ***click here***.

By mode: The dry van market had a fairly impressive recovery in the past week, but volumes remain down by double digits compared to last year. The Van Outbound Tender Volume Index rose by 19.8% over the past week but is still down 10.2% year over year.

The recovery in the reefer market is less impressive than that of the dry van market, but volumes are still up year over year. The Reefer Outbound Tender Volume Index increased by 8% over the past week. Compared to this time last year, reefer volumes are up 6.5%, showing that the reefer market continues to enjoy relative strength.

Tender rejection rates retreat from holiday highs

Tender rejection rates are retreating from their recent highs, but the reaction around the holiday provides a positive sign for carriers entering 2025. The first two months of the year will likely still be challenging for those in the market, which will lead to continued exits in capacity, but it sets up the middle of the year to be far better than it has been in the past two years.

SONAR: Outbound Tender Reject Index – Seasonality View: *2025 (white), 2024 (green) and 2023 (pink)*
**To learn more about SONAR**, ***click here***.

Over the past week, the Outbound Tender Reject Index (OTRI) fell by 256 basis points, an indication of capacity returning to the road, to 7.13%. Tender rejection rates are still 236 basis points higher than they were this time last year, a sign that the market is definitely tighter than it was this time last year, even if it doesn’t feel that way to everyone in the market.

*SONAR: Outbound Tender Reject Index – Weekly change*
**To learn more about SONAR**, ***click here***.

The map above shows the Outbound Tender Reject Index — Weekly Change for the 135 markets across the country. Markets shaded in blue are those where tender rejection rates have increased over the past week, whereas those in red and white have seen rejection rates decline. The bolder the color, the more significant the change.

Of the 135 markets, 22 reported higher rejection rates over the past week, down from the 67 that saw tender rejection rates rise in last week’s report.

It’s no surprise that capacity is returning to the highest-volume markets: Atlanta, Dallas and Ontario, California. Tender rejection rates in these markets are all down 200 basis points over the past week. Both Ontario and Atlanta are back below the national average. The positive sign is that rejection rates in each of these markets are still over 200 basis points higher than they were this time last year. Savannah, Georgia, was the only market in the top 35 largest freight markets by volume where tender rejection rates increased by over 100 basis points, rising 179 bps week over week.

*SONAR: Van Outbound Tender Reject Index (white), Reefer Outbound Tender Reject Index (green) and Flatbed Outbound Tender Reject Index (orange)*
**To learn more about SONAR**, ***click here***.

By mode: Tender rejection rates across all three modes are lower this week, but the dry van market experienced the smallest decline of the three. The Van Outbound Tender Reject Index fell by 225 basis points over the past week to 6.46%. Compared to this time last year, dry van tender rejection rates are up 89 basis points.

The reefer market remains the tightest equipment type tracked within SONAR, despite the decrease in rejection rates over the past week. The Reefer Outbound Tender Reject Index fell by 275 bps over the past week to 15.84%. Reefer tender rejections are still more than double what they were this time last year, currently up 811 bps y/y.

The flatbed market experienced the largest decline in tender rejections over the past week, but the market will likely remain under some pressure until warmer weather hopefully brings more projects. The Flatbed Outbound Tender Reject Index fell by 648 bps over the past week to 10.88%. Flatbed tender rejection rates are holding onto y/y gains, currently up 89 bps.

Spot rates still rising as capacity returns to the road

Though tender rejection rates are retreating from their recent highs, it hasn’t stopped spot rates from continuing to rise over the past week. The positive momentum in spot rates that really started in early October hasn’t been as quick to fade as the momentum in rejection rates. Spot rates are likely to face pressure over the next couple of months, but the increases to close out 2024 should help create a higher floor for spot rates.

*SONAR: SONAR National Truckload Index (white, right axis) and Initially Reported Van Contract Rate (green, left axis)*
**To learn more about SONAR**, ***click here***.

The National Truckload Index – which includes fuel surcharge and various accessorials – continued to increase, rising 3 cents per mile to $2.49. The NTI is 6 cents per mile higher than it was this time last year as the gap has narrowed as capacity has been fairly quick to return to the roads. The linehaul variant of the NTI (NTIL) – which excludes fuel surcharges and other accessorials – matched the increase in the overall NTI, rising 23 cents per mile to $1.94. The NTIL is 10 cents per mile higher, the narrowest the gap has been since early October.

Initially reported dry van contract rates, which exclude fuel, fell off their recent Thanksgiving high, returning to the range they have been in for much of the year. The initially reported dry van contract rate, excluding fuel, increased by 4 cents per mile over the past week to $2.38. The initially reported dry van contract rate is reported on a two-week lag, so the impacts of the holiday are just starting to put upward pressure on contract rates. Compared to the same period last year, dry van contract rates are up 7 cents per mile.

*SONAR: RATES.USA*
**To learn more about SONAR**, ***click here***.

The chart above shows the spread between the NTIL and dry van contract rates is trending back to pre-pandemic levels. The spread remains wide, but with the recent moves in both spot and contract rates, it moved even wider than it was a week ago. Over the past week, the spread widened by 12 cents to minus 49 cents. Compared to this time last year, the spread is 20 cents per mile narrower than it was, another sign that the market is moving to a more carrier-friendly environment.

*SONAR: SONAR TRAC rate from Los Angeles to Dallas.*
**To learn more about SONAR**, ***click here***.

The SONAR Trusted Rate Assessment Consortium spot rate from Los Angeles to Dallas fell slightly over the past week but remained above contract rates. The TRAC rate from Los Angeles to Dallas decreased by 3 cents per mile to $2.72. Spot rates along this lane are 21 cents per mile above the contract at present, which could be a reason why capacity was quick to return to the Southern California market.

*SONAR: SONAR TRAC rate from Atlanta to Chicago.*
**To learn more about SONAR**, ***click here***.

From Chicago to Atlanta, spot rates have been volatile, finally moving above contract rates and to the highest level in the past six months. The TRAC rate for this lane increased over the past week by 9 cents per mile to $2.86. Spot rates are now 5 cents per mile higher than contract rates, which could lead to tighter conditions along this lane.

Port workers deploy CEO tactics to win higher compensation

By Satish Jindel

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

The 50,000 members of the International Longshoremen’s Association are expected to resume their work stoppage on Jan. 15, following a brief three-day strike in October — and this time it could last much longer.

Responsibility would rest squarely on the container lines and cargo handling companies that operate the ports from Maine to Texas and are negotiating collectively as the United States Maritime Alliance.

In the aftermath of the horrific killing of UnitedHealthcare CEO Brian Thompson, Wall Street’s single-minded focus on shareholder value and eye-popping increases in CEO compensation is getting new attention.

Few people are aware that UnitedHealth Group’s board awarded its former CEO, William McGuire, with $1.6 billion in stock options over 15 years ($106 million per year), which was on top of millions of dollars in salary, bonus and other forms of compensation. Unlike other businesses, health insurance companies generate shareholder value mainly from managing the cost.

The staggering increase in executive compensation has fueled workers’ resolve to hold fast to demands for better wages and benefits — even if it means walking off the job and losing paychecks.

The ILA wants something in return for helping the USMX increase the value of ports and ocean carriers, especially if technology decreases the need for new hires. The container shipping lines received windfalls during the coronavirus crisis when container rates shot up from $2,500 to more than $12,000 per box. Companies like Maersk were able to fund many acquisitions and reward executives from the enormous creation of corporate wealth.

Thanks to the internet, workers and union leaders now have data on how CEOs have leveraged their position to gain staggering compensation packages over several decades. In addition to salary and bonuses, CEOs get long-term payouts, restricted stock options and other perks such as reimbursement for security, tax preparation and a car. Sometimes the value of perks is even grossed up to cover a CEO’s tax liability.

According to Economic Policy Institute research, since 1978, CEO compensation, adjusted for inflation, has skyrocketed 1,085% compared to just 24% for the typical worker. That amounts to 24% per year for CEOs and a meager 0.5% per year for workers.

Other data sources show that the ratio of CEO compensation to the median wage of company employees is 300 times today compared to 50 times 20 years ago.

In 2017, when President Donald Trump and Congress reduced corporate taxes, top executives at public companies received billions of dollars in extra compensation even though their actions did not contribute to the increase in their stock price.

The recent strike by aircraft mechanics at Boeing, which lasted for seven weeks, is a great example of how fed up workers brought the world’s second-largest aerospace manufacturer to a grinding halt. Ignoring demands for a 9.5% annual pay increase over four years resulted in a loss for Boeing of $10 billion, a 25% drop in the stock price and a bond rating that got degraded to near junk level before it raised $21 billion to shore up the balance sheet.

It also illustrated that corporate leaders, rewarded with huge compensation for increasing shareholder value, were unable to assemble a single aircraft for nearly two months and could not protect the stock price from dropping by 29% while the broad market went up 9%.

While USMX has agreed to award a 61.5% increase in wages over the next six years, or 10.25% per year, it still needs ILA approval to introduce more automation at the ports to increase capacity and reduce labor cost.

For most dockworkers at the high end of the payscale, a 10% increase could amount to $10,000 per year. Contrast that to a 10% increase in compensation for CEOs who earn millions of dollars per year. The employee will spend that $10,000 on daily expenses for food, rent, transportation, vacation and household necessities — which circulates money throughout the economy and back to corporations. CEOs put their financial windfall in investments for future returns.

Fred Smith realized the importance of employees in creating shareholder value when he founded Federal Express in 1970 on the PSP principle — People, Service, Profit. If the company takes care of its people (employees), they will provide great service (to customers), and that will generate profit (for shareholders). It was such a powerful concept that many corporations embraced it.

During recent decades, PSP has been flipped upside down to stand for Profit, Service, People. Corporate boards have adopted the misguided belief that shareholders are the most important stakeholders. They fail to realize that of the three stakeholders, employees will show the greatest loyalty to the company. Shareholders don’t have any loyalty to a company’s long-term mission. They will buy and sell stocks at a moment’s notice.

Corporate boards need to acknowledge that rank-and-file workers are equally as important as management for generating shareholder value.

If the USMX wants to avoid a protracted work stoppage, it needs to recognize the ILA’s leverage and reward its members with gains realized from more automation.

The failure of corporate boards to recognize the huge gap in compensation between CEOs and average workers will lead to more unionization and more work stoppages that hurt shareholders, workers, customers and the economy.

Through their aggressive bargaining stances, workers at the ILA and other unions, including now at Starbucks, are sending a clear message that they are willing to leverage their collective value to shareholders just as CEOs have been doing to get significantly higher increases in their total compensation.

Satish Jindel is president of ShipMatrix Inc., a freight transportation and logistics consultancy. Jindel has 40 years of experience in the transportation industry and a track record of forecasting industry trends.