New Netradyne sensor works to eliminate drowsy driving

Driver fatigue is a common challenge that can have serious detrimental effects on drivers, carriers and the motoring public. The Federal Motor Carrier Safety Administration has amassed a significant amount of data surrounding driver fatigue over multiple decades, revealing that as many as 65% of drivers admit to driving while drowsy during a given year.

Drivers – in both trucks and passenger vehicles – are more likely to make mistakes when drowsy. These mistakes can have life-threatening consequences. The National Highway Traffic Safety Administration estimates that 18% of all fatal vehicle crashes between 2017 and 2021 involved a drowsy driver. During that span, almost 30,000 people were killed in drowsiness-related incidents.

The NHTSA data represents all fatal crashes, not just those involving commercial vehicles. But professional drivers often work in conditions that naturally lend themselves to drowsiness, including overnight driving and long hours on the road.

The potentially deadly impact of unchecked fatigue can also come with devastating financial consequences for carriers.

“This is roughly a $20 billion problem,” Netradyne Senior Product Manager Matt Thornton said. “It is a safety problem, but it is also a financial problem.”

Safety solution provider Netradyne is working to help drivers and safety managers identify drowsy driving in real time and prevent accidents before they occur. The company is doing this through the introduction of its DMS Sensor.

The sensor is designed to detect drowsy driving cues – like yawning, head nodding and changes in blinking patterns – with industry-leading precision. Netradyne’s primary in-cab camera sits at the top center of the windshield and monitors the entire cab from above. The drowsiness sensor is laser-focused on the driver. It is positioned slightly downward on the dashboard looking slightly upward to accurately differentiate between eye movements that are associated with falling asleep and instances when the driver is simply looking down.

“This piece of technology is made to assist the driver. It is driver-first technology,” Thornton said. “Its purpose is to keep them awake on the road. It is not designed to be punitive.”

When the sensor detects drowsy driving behavior, the driver gets the first line of alerts. These in-cab audio signals are designed to restore the driver’s alertness. From there, safety managers and other operational personnel are also alerted to the event, enabling them to make important safety decisions in the moment.

Advocating for drivers is a thread that runs through Netradyne’s entire suite of products.

Netradyne’s Driver•i multicamera solution is engineered to create a culture of safety by catching drivers doing the right thing, not just calling them out for potential infractions. When fleets use Netradyne’s Driver•i solution, 100% of the driving time is captured and analyzed, and drivers are assigned a score. This GreenZone Score considers both positive and risky driving behaviors. A scientific approach that leverages large amounts of fleet and driver data in a calculation ensures that drivers with a history of positive decision-making can see that reflected back to them in a tangible way.

“We want to encourage positive safety discussions, and that starts with focusing on drivers and helping them avoid getting into serious and dangerous situations like driving while drowsy,” Thornton said.

Click here to learn more about Netradyne.

Priority Courier Experts acquires Indiana-based parcel courier

A white last-mile truck with a liftgate at a Prologis warehouse

Same-day delivery company Priority Courier Experts (PCE) announced Tuesday it has acquired Now Courier.

Indianapolis-based Now Courier is a 38-year-old parcel and local delivery company serving the Midwest out of seven locations. It executes 4 million deliveries annually with a network of 250 drivers.

“I am excited for me and my team at NOW Courier to join forces with PCE and help bring new capabilities and solutions to the Indianapolis market,” stated Ryan Schwalbach, president of Now Courier, in a news release.

Financial terms of the transaction were not provided. The deal marked the second add-on investment in PCE by its private equity backers, Trident and Bluejay Capital Partners.

“This acquisition illustrates our vision of creating a robust network of expedited freight partners that deliver exceptional service and innovative solutions,” said PCE CEO Mark Cossack.

Based in the Minneapolis-St. Paul area, PCE is an expedited B2B courier serving the upper Midwest. It specializes in medical deliveries of specimens, blood products, pharmaceuticals and equipment with its fleet of trucks and parcel delivery vans.

PCE has 207 power units registered, according to the Federal Motor Carrier Safety Administration.

The deal expands PCE’s expedited transportation footprint throughout Indiana and surrounding areas.

“We are thrilled to execute our organic growth strategy for Priority Courier Experts by expanding into other dynamic markets with strong incumbent partners,” said Garrett Anacker, vice president at Bluejay Capital. “In addition to supporting the PCE and NOW teams, we are actively looking towards additional market expansion opportunities in the near future.”

More FreightWaves articles by Todd Maiden:

Maersk Air Cargo readjusts China-North America network

Maersk Air Cargo, part of the Maersk ocean and logistics empire, will resume freighter service from China to its South Carolina hub at the start of the new year but will originate from a different city this time, FreightWaves has learned.

The all-cargo operator also plans to deploy its second Boeing 777 freighter aircraft by early 2025.

Maersk Air Cargo temporarily suspended scheduled flights from Shenyang, China, to Greenville-Spartanburg International Airport (GSP) via Seoul, South Korea, on June 1 so the Boeing 767-300 aircraft could be used to launch a route connecting Chicago-Rockford International Airport with Zhengzhou, China. Maersk said at the time it intended to restart its Asia-South Carolina service in August.

Maersk Air Cargo is making final preparations to relaunch service between China and GSP on Jan. 1, spokesman Rainer Horn said in response to an email query. The program will entail three flights per week, as was previously the case, utilizing a Boeing 767-300 cargo jet, but will connect GSP with Zhengzhou instead of Shenyang.

The company did not provide further details about what network adjustments are being made to accommodate the GSP deployment.

Maersk outsources flying of its 767 freighters operating from Asia to the United States to Miami-based Amerijet.

Meanwhile, a Boeing 747-400 freighter that Maersk Air Cargo charters from Magma Aviation, this month has begun flying a new route with a rotation of Liege, Belgium; Chicago-Rockford; Halifax, Canada; Liege. The Magma aircraft continues to operate regularly between Frankfurt, Germany, and Chicago-Rockford.

777 freighter

Meanwhile, Maersk in late November took possession from Boeing of its second 777 factory-built freighter and flew it from Seattle to its base in Billund, Denmark, according to a post on LinkedIn. Horn said the company is completing paperwork to get the new long-haul aircraft added to its operating certificate and will deploy it on a Hangzhou, China-Billund-Liege, Belgium, route in a few weeks.

The 53-day strike by Boeing machinists this fall likely delayed the 777 delivery, which was originally scheduled for the third quarter so it could be utilized for the peak shipping season.

Maersk has been operating its first 777 freighter since August multiple times per week between Billund and Liege, with alternating stops in Hangzhou and Ezhou, China, according to flight data site Flightradar24.

Management has previously said the large 777s offer better operating efficiency on China-Europe routes because of their ability to carry more goods than the 767, which is a medium widebody freighter. The Boeing 777F can fly up to 4,970 nautical miles and carry a maximum payload of 112.5 tons. The main deck fits pallets up to 9.8 feet high, and both cargo decks are temperature-controlled.

Maersk’s new freighter brings needed capacity to the Europe-China market, where main-deck freighters provide most of the airlift and have been operating most of the year at full capacity because of the surge of cross-border e-commerce shipments from Chinese online sellers.

In addition to the two production 777s, Maersk Air Cargo operates 20 B767 freighters – most of them post-passenger conversions. A portion of the fleet provides capacity for UPS in Europe. In 2022, Maersk made the strategic decision to expand its private airline beyond contract transport and utilize cargo jets to provide more transport options for its own ocean shipping and logistics customers. Maersk’s airfreight unit also charters aircraft from third-party providers like Magma Aviation.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Maersk Air Cargo receives first 777 freighter aircraft

Maersk launches Chicago Rockford-China air cargo servi c e

‘No big bang’ for peak season air cargo business

Kal Freight co-founder says no layoffs expected in restructuring

The co-founder of Kal Freight said he does not expect any layoffs as the trucking company restructures under Chapter 11.

Kal Freight on Thursday filed for Chapter 11 bankruptcy in the Southern District of Texas. Filing of Chapter 11 will allow the company to reorganize while continuing operations.

Co-founder MP Singh told FreightWaves no jobs should be impacted by the restructuring and that operations will continue as normal for the Texas-based company. According to a filing with the Federal Motor Carrier Safety Administration, Kal Freight employs 600 drivers and has 580 power units.

Singh said the company had overexpanded after experiencing a surge in demand in 2020 because of the coronavirus pandemic.

“I think we did so much of overexpansion, and we lost money in the new ventures of ours and tires and everything, but Kal Freight was always making the money,” he said in an interview. “We were doing good, but all the money was being used from Kal Freight.”

Kal Freight will be pulling back from other ventures, including KVL Tires, its tire company, he said. Other businesses included aircraft parts distribution, truck parts distribution and trailer leasing. The company will wholesale its parts and tires and will also sell some properties, including personal real estate.

Of the 600 drivers, “no one is worried,” Singh said. “We told employees way before doing it.”

The company retains 94% of its drivers year over year, he said.

Singh said creditors will be paid without disruption. The bankruptcy filing shows that the company has 50 to 99 creditors. The creditors with the largest unsecured claims include companies offering professional services, inventory and litigation.

Unsecured claims total at least $24 million, according to court filings. Among the largest unsecured creditors are CIMC Reefer Trailer Inc., owed more than $12 million; Continental Tire, owed more than $1 million; and Cargo Solution Express, owed more than $950,000.

The company was founded in 2014 and has locations in California, Texas, New Jersey, Indiana, Tennessee, Georgia, Arizona and Arkansas.

Supreme Court again asked to rule on broker liability; case involves TQL

(Editor’s note: the article has been updated to more accurately reflect the Miller vs. Robinson finding regarding C.H. Robinson.The brokerage was not found negligent).

The issue of broker liability in the wake of serious trucking accidents may come before the U.S. Supreme Court again, but there is no guarantee the nine justices will at last take up the issue.

Attorneys for Katia Gauthier, the widow of a driver killed in Georgia in 2020 in a crash with a truck, have asked the Supreme Court to review a decision by two lower federal courts that TQL Logistics, one of the biggest brokers in the country, was not negligent when it hired the carrier Hard to Stop to transport a load from Claxton Poultry Farms.

With both the U.S. District Court for the Southern District of Georgia and the 11th U.S. Circuit Court of Appeals having taken TQL out of the case, the Gauthier attorneys now face a potentially tough climb in appealing to the Supreme Court for review.

On two other occasions in recent years, the question of whether a broker can be held liable or negligent in a case involving a truck it hired has come before the Supreme Court seeking review. Both requests were rejected.

In Miller vs. C.H. Robinson (NASDAQ: CHRW), the 9th U.S. Circuit Court of Appeals overturned a district court’s dismissal of negligent hire claims brought against C.H. Robinson in Nevada for a crash that left the plaintiff, Allen Miller, a quadriplegic. C.H. Robinson had hired a driver who allegedly did business as two companies, RT Service and Rheas Trans, and it was that driver involved in the crash that injured Miller.

The Supreme Court, in the closing days of its 2021-2022 term, denied C.H. Robinson review of the 9th Circuit decision.

Two different circuits, two different directions

The more recent denial of review in a case related to broker liability involved brokerage company GlobalTranz and was handed down near the start of 2024. The key difference between it and the C.H. Robinson case is that GlobalTranz was found to be protected by the provisions of the Federal Aviation Administration Authorization Act, the so-called F4A law that is a key piece of federal legislation guiding rulings on liability and negligence not just for brokers but for other questions of state regulation of transportation.

Attorneys for Gauthier had sought an en banc review before a larger panel of appellate court judges, but that request was denied in August.

So while the Supreme Court denied review in both cases, there is a clear conflict at the appeals court level: The 9th Circuit ruled F4A did not fully protect C.H. Robinson; the 7th Circuit, where Ying Ye, the widow of a man killed by a truck hired by GlobalTranz, sued the broker, ruled that brokers were protected.

That type of conflict can help spur, but doesn’t ensure, a Supreme Court review.

What will SCOTUS do?

“I could see this going one of two ways,” Nataniel Saylor, a partner with the trucking-focused Scopelitis law firm, said of how the Supreme Court might react.

One course of action, he said, might be that if it ever gets to the point that there have been four requests for certiorari, and the precedents are 2-2 (two decisions widening the definition of broker liability and two limiting it), “then maybe they take up the fourth case.”

But if it’s 2-1 or 3-1 with the Ninth Circuit decision widening the definition of broker liability, the justices might think “chances are the Ninth Circuit just got it wrong,” Saylor said.

Saylor noted that even though the only decision on the books widening the definition of broker liability comes from the Ninth Circuit, other circuits without a binding precedent–like those that are home to the TQL and GlobalTranz decisions–can still look to Miller vs. Robinson as a “persuasive” precedent should a court in one of those other circuits be forced to address the issue.

In another significant broker liability case, the broker – Landstar Systems (NASDAQ: LSTR) – was ruled to be protected by F4A in an 11th Circuit ruling in April 2023. That case involved the theft of cargo, not an injury to a person.

The plaintiff, Aspen American Insurance Co., chose not to request review from the Supreme Court. But it adds to the weight of conflicting opinions, which in just a few years stands at three in which the brokers were fully protected by F4A (Landstar, GlobalTranz and now TQL) and one where it wasn’t (C.H. Robinson).

While those cases have received most of the recent attention, there are others that took on the question of liability under F4A. In the 9th Circuit ruling against C.H. Robinson, the two judges who ruled against Robinson cited previous decisions that dealt with the so-called safety exception and transportation companies, including litigation involving Amazon and Walmart Transportation.

Attorneys for Katia Gauthier declined comment when asked about the case and the lawyers’ rationale for proceeding further.

The safety exception

F4A has a key clause. It says states may not take actions that would impact a “price, route or service” of a motor carrier.

But it has a second one too: the safety exception. In the case of C.H. Robinson, the court turned to that to hold the 3PL negligent in its hiring of the driver involved in the accident that paralyzed Allen Miller. The safety exception says F4A “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.”

“In passing the FAAAA, Congress was primarily concerned with the States regulating economic aspects of the trucking industry by, for example, enacting tariffs, price regulations, and other similar laws,” the 9th Circuit wrote in its Miller decision, citing precedents. “Congress’s ‘clear purpose’ in enacting the safety exception, then, was ‘to ensure that its preemption of States’ economic authority over [that industry] … not restrict the States’ existing power over safety.”

The safety exception also is restricted to actions in “connection” with “motor vehicles.” While C.H. Robinson argued that it was not a motor vehicle as defined by the law, the 9th Circuit disagreed. “We hold that negligence claims against brokers, to the extent that they arise out of motor vehicle accidents, have the requisite “connection with” motor vehicles,” the court ruled. “Therefore, the safety exception applies to Miller’s claim.”

The Supreme Court didn’t take up that question, nor did it take up the questions in the Ying Ye/GlobalTranz case.

In the 7th Circuit decision rejecting Ye’s claims, which were that GlobalTranz was negligent in hiring a carrier called Global Sunrise that was involved in an accident that killed Ye’s husband, the court cited F4A and its prohibition of state action that could affect prices, routes or services.

“Ye’s negligent hiring claim has much more than a tenuous, remote, or peripheral relationship to broker services,” it wrote. “The relationship is direct, and subjecting a broker’s hiring decisions to a common-law negligence standard would have significant economic effects. So Ye’s claim is expressly preempted by [F4A].”

The Miller case takes no issue with that; it rejected the charge of broker negligence on the part of C.H. Robinson and cited the provisions of F4A. But it was the safety exception that put that case at odds with others, since the judges in Ye/GlobalTranz did not find that GlobalTranz’s hiring decisions were negligent enough to bring in the safety exception.

The standoff now has another player in the Gauthier/TQL case, and the trucking industry will be watching closely to determine if the existence of another conflict among circuit courts is enough to get the Supreme Court’s attention, and review.

More articles by John Kingston

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Werner case at Texas Supreme Court: Did driver fail to perform a legal ‘duty’?

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Record rail intermodal, consumer spending signal positive outlook, says AAR

November rail traffic is signaling a positive outlook for the broader economy heading into 2025.

Resilient consumer spending helped intermodal continue to lead all categories in November and year to date, according to the Association of American Railroads’ Freight Rail Index (FRI) released Monday.

Continued strong consumer demand and port activity fueled record intermodal results in November, for three of the top five weeks since AAR started collecting data in 1988. The trade group credited a robust job market for bolstering growing consumer activity.

The November FRI was up 2.8% over October, reaching its highest point since May 2021. “This suggests that, while the economy has its challenges, it remains generally on solid ground,” the AAR said in the report.

At the same time, carload activity reflected ongoing weakness in the manufacturing sector and a steady decline in coal consumption.

The FRI counts intermodal plus carloads excluding coal and grain, and is considered an indicator of overall economic conditions. It is also seasonally adjusted by the AAR, in line with other indicators.

The AAR said consumer spending on goods and services, which accounts for 70% of GDP, is setting the pace for the broader economy with an inflation-adjusted 3% gain in October, the most recent available data, from a year ago following a 3.1% improvement in September.

More germane to rail, inflation-adjusted consumer spending on goods increased 3.1% in October y/y, which the AAR credited for the yearlong boost to intermodal results.

The report noted that while job growth has slowed from “unsustainable levels” in the past several years, a November recovery showed the jobs market remains resilient and, for obvious reasons, goes hand in hand with consumer spending.

More job openings in October from September; the fewest unemployment claims in November since April; a five-month high in the October quit rate (workers who quit their jobs presumably for better ones); and stable inflation portend continued consumer spending gains.

Those factors, and the results of the presidential election, pushed consumer confidence in November to its highest level in 16 months, according to the Conference Board, further bolstering the positive economic outlook.

In the U.S., railroads originated an average of 282,000 intermodal containers and trailers per week in November 2024, up 10.7% over November 2023 and the highest weekly average for any November dating to 1989. Year-to-date intermodal volume in 2024 through November was 12.75 million units, up 9.1% y/y, the third most behind 2018 and 2021.

Container originations averaged 272,243 per week in November, the third-highest weekly average on record.

The all-time top nine container weeks for U.S. railroads have come since late August of this year, AAR said, with three of the top five, including the top two, in November. Year-to-date container volume through November was the most ever, up 10.6% y/y. Trailer originations were off 19.7% from 2023.

The record container volumes follow higher port activity, with aggregate year-to-date volume at 10 major U.S. ports tracked by AAR ahead 13% through September from the previous year. West Coast gateways improved by 18%; East Coast ports increased 9%. The report noted some growth at West Coast ports came on the diversion of shipments from the East Coast ahead of a strike by members of the International Longshoremen’s Association. Some imports were also being brought forward in anticipation of potential tariff increases under the incoming Trump administration, and another possible East Coast port strike in January.

There was less good news in the manufacturing sector, which continued sluggish results seen over the past several years.

Carloads closely correlate broader manufacturing output, and shipments of chemicals, paper, steel and other metal products, motor vehicles, crushed stone and sand, metallic ores, and stone and mineral products were down 1% in the first 11 months of 2024 from a year ago.

Total carloads in November fell 3.8% y/y and were off in 10 of the 11 months of 2024. Volumes through November decreased 10.5 million, or 3.1%, to 335,954 carloads from the previous year. Only the pandemic year of 2020 had lower year-to-date total carloads since 1988.

Coal continued its historical decline, down 15.2% in November and 14% year to date to 2.71 million carloads — lowest on AAR record — as higher exports failed to offset lower domestic demand. But that figure was still 25.9% of all carloads, ahead of chemicals, 14.8%, and grain, 9.4%.

Excluding coal, carloads rose 1% in November, the 10th straight month of y/y improvement, and gained 1.4% year to date, the most since 2019.

Grain averaged 22,332 weekly carloads in November, up 0.7% from November 2023 and the 10th straight year-over-year increase. Volume came on easy comparisons to 2023, when grain exports were unusually low.

Grain carloads through November were up 8.8% year to date, or 78,881 carloads, leading all other commodity categories, but turned in the lowest volume in absolute terms since 2015 because grain exports are still lower than other, recent years.

Carloads of chemicals averaged 32,288 per week in November 2024, the highest weekly average ever for that month, ahead 3.9% over November 2023 amid year-over-year gains for 15 straight months. Year-to-date carloads through November totaled 1.55 million, an increase of 4%, or 60,155 carloads, and a record for the first 11 months of a year. Chemical production has been fueled by low prices for natural gas, and the outlook foresees steady expansion in 2025, the report said, quoting the American Chemistry Council.

The report concluded by noting that the economic outlook depends on the resilience of consumer spending, strength of the labor market, and where inflation and interest rates are headed. The combination of strong intermodal growth and stable consumer demand “offers reasons for optimism,” but railroads and the economy have to be vigilant in navigating evolving policies and potential disruptions.

Find more articles by Stuart Chirls here.

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Benchmark diesel price hits a low it hasn’t seen in more than 3 years

Not since October 2021 has the benchmark diesel price used for most fuel surcharges been this low.

With a decline of 8.2 cents a gallon from the prior week’s average retail diesel price, the price fell to $3.458 a gallon. That drop, posted by the Department of Energy/Energy Information Administration, was the largest in almost a year, going back to a 9.3-cent decline Dec. 21, 2023, and the outright price was the lowest since a posting of $3.477 on Oct. 4, 2021, several months before the Russian invasion of Ukraine that sent prices on a wild ride that at one point lifted the average number well above $5 a gallon. (On June 20, 2022, the DOE/EIA price hit $5.81.)

The latest decline in the benchmark comes as ultra low sulfur diesel prices on the CME commodity exchange have been sliding consistently overall, though with bursts of an occasional increase in the middle of that fall.

ULSD settled at $2.3042 a gallon Nov. 5, which was Election Day. A quick post-election decline took the ULSD settlement to $2.1709 on Nov. 15. There were spurts higher since then; the price settled at $2.2749 a gallon on Nov. 22.

But the trend since that has been decidedly lower. The $2.1326 settlement Friday was the lowest since Oct. 28. A rally Monday added just over 5 cents per gallon to the price of ULSD, with a settlement of $2.1835. But that was seen as a reaction to a general concern about geopolitical tensions following the fall of the Assad regime in Syria and news about China’s plans to further stimulate the economy, rather than any change in oil market fundamentals.

While there is no immediate short-term bearish news, there also are essentially no conditions that any bulls can point to that would support an argument of higher prices on the horizon.

That’s the key driver behind the decision last week by the OPEC+ group to delay and stretch out its plans to begin rolling back its production cuts that in the case of some countries can be traced back to 2023.

The rollback of the production cuts on a graduated basis was to begin in December. But the OPEC+ group, which consists of OPEC and a group of non-OPEC oil exporters nominally led by Russia, decided instead to delay increasing production until April. It also set a new calendar for the rollback by stretching it out to the end of 2026. They were originally planned to be implemented by the end of 2025.

Tariffs, China and demand: uncertainties

Helima Croft, managing director and global head of commodity strategy at RBC Capital Markets, said in an interview with CNBC on Monday that there are significant areas of uncertainty in global markets now. She cited tariffs, Iranian sanctions under a Trump regime and the demand forecast in general as some of those questions hovering over the market.

“Weak Chinese demand has really been a problem for the oil market,” Croft said. “This year, I think people will be watching very closely to see what the tariff impact will be on the supply side.”

But Croft’s own forecasts are notably bearish. The RBC forecast, circulated among oil followers Monday on X, showed an average price of global crude benchmark Brent of $68.50 a barrel, sliding to $63 by the fourth quarter and an average $65.50 for 2025. The 2026 average is $62.25.

Brent settled Monday at $72.14 a barrel.

Moves by Saudi Arabia

One market player that is clearly bearish is Saudi Arabia. According to Bloomberg, Saudi Arabia has notified its customers in Asia that it is cutting its price formula for sales into that region by 80 cents a barrel.

Arab Light, the primary Saudi grade, will be sold at a 90-cents-a-barrel premium to the benchmark set by the spot market prices of Oman and Dubai crudes beginning in January. The premium for December was $1.70 a barrel.

While forecasts in the market did assume there would be a decline in the premium, according to a report from Bloomberg, the expectation was that the premium would be $1 a barrel. The additional 10-cent reduction is considered a sign of the Saudi view of the market.

Saudi prices are set as a benchmark to the price of crude grades Oman and Dubai. If the outright price of the benchmark rises, customers will pay more. But the spread is closely watched as a signal of how Saudi Arabia sees the market.

The spread was expected to drop to $1 a barrel, according to Bloomberg. Going an additional 20 cents per barrel below that is therefore viewed as a bearish signal.

More articles by John Kingston

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Mexico’s automotive industry exports 289,309 vehicles in November

Mexican authorities said they are on track to produce and export a record number of passenger vehicles and pickup trucks in 2024.

From January through November, auto factories in Mexico produced 3.7 million units, a 5.6% year-over-year increase, according to data released Friday from the National Institute of Statistics and Geography (INEGI).

Pickup trucks accounted for 76% of total vehicles produced at Mexican auto factories during the first 11 months of the year, INEGI said.

Vehicles exported from Mexican factories from January through November totaled 3.2 million units, a 6.5% year-over-year increase from the same period in 2023.

“These results confirm the beginning of a new stage of expansion for the automotive industry. As a reference, 2017 was a record year in production, with 3.9 million vehicles; at the close of November 2024 we are only 168,000 units away from reaching it,” the Mexican Association of the Automotive Industry (AMIA) said in a statement.

Mexico City-based AMIA is a chamber association formed in 1951 to represent the interests of foreign vehicle manufacturers established in Mexico, including Audi, BMW, FCA, Ford, GM, Honda, JAC, KIA, Mazda, Nissan, Toyota and Volkswagen.

About 87% of cars produced in Mexico are exported, with 80% of them destined for the U.S.

During November, production of vehicles from Mexican auto factories increased 6.7% year over year to 351,535 units. Exports increased 2.9% year over year in November to 289,309 vehicles.

GM factories in Mexico exported 75,319 units in November, an 8% year-over-year increase.

In Mexico, Detroit-based GM has three production complexes, including plants in the cities of Ramos Arizpe (Chevy Blazer and Equinox), Silao (Chevy Silverado 1500 and GMC Sierra 1500) and San Luis Potosi (GMC Terrain and Chevy Equinox), according to GM Authority.

Nissan exported 37,390 passenger vehicles during the month, a 40% year-over-year

Increase. Japan-based Nissan has two factories in Mexico where it produces models such as the Sentra and Kicks.

Toyota exported 26,905 units during November, a 46% year-over-year gain over the same period in 2023. The Japanese automaker produces the Tacoma pickup truck and the Corolla sedan in Mexico.

FreightTech supershow with RXO, Happyrobot, GenLogs | WHAT THE TRUCK?!?

On episode 782 of WHAT THE TRUCK?!? Dooner is joined by three CEOs from a trio of the fastest growing and most innovative companies in this space.

RXO CEO Drew Wilkerson talks about acquiring Coyote; consolidation; and M&A in trucking.

GenLogs’ Ryan Joyce previously spent his career in the CIA conducting counterterrorism operations throughout the Middle East. He used to track terrorists, but now he tracks trucks. We’ll find out how the company is scaling up the fight against freight fraud and investing its $6 million series A raise.

Last week, HappyRobot announced it had closed a $15.6 million Series A funding round led by Andreessen Horowitz (a16z), with participation from Y Combinator, RyderVentures and other strategic investors. HappyRobot CEO Pablo Palafox stops by to talk about the company’s AI-powered agents and how they work. We’ll even take them for a test drive.

Plus, spot market hits new highs; driver training at Chuck E. Cheese; service dog retirement; trucker tases himself for likes; and more.

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.

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Tariff threats roil North American container marketplace

Trade and tariff concerns are roiling an already volatile market and pushing up prices for shipping containers in North America, a new report says.

The region saw a 20% spike in average container prices over the past 90 days to lead a global surge on market volatility, U.S. election uncertainty and tariff fears, growing Mexico-U.S. trade, and logistical disruptions in Canada, according to the December forecast from box marketplace Container xChange.

Higher container prices — and freight rates — are projected to remain higher.

“Tariffs make trade less efficient by adding costs, time, and complexity,” said Christian Roeloffs, co-founder and CEO of Container xChange, in the report. “For instance, instead of straightforward routes, businesses may rely on transshipments, rerouting through Mexico, or diversifying production and assembly sites. This inefficiency requires additional capacity, much like what we saw during Red Sea diversions.

“Consequently, we anticipate container prices and freight rates to stay elevated, supporting demand for containers and vessel capacity. However, retaliatory tariffs and inflationary pressures will likely harm US exports more than imports, creating broader imbalances in trade dynamics.”

Since 2023, Houthi militia based in Yemen have attacked Red Sea shipping it claims are connected to Israel. Major ocean lines linking Asia, the Mediterranean and the East Coast of the United States have detoured away from the Red Sea and Suez Canal around the Horn of Africa, adding 10-14 days and higher operational costs to a typical voyage. It is unclear how the fall of Bashar al-Assad’s regime in Syria may affect the situation, but Gaza-based Hamas over the weekend called on Palestinians in the West Bank to expand its war against Israel and its allies.

Potential higher tariffs promised by President-elect Donald Trump, the report said, will further accelerate the ongoing process of trade risk diversification, which began during the COVID-19 pandemic. While this could create opportunities for new trade routes, it may also lead to a temporary mismatch in container supply and demand.

Container xChange found the North America region saw the largest increase in average container prices, with 40-foot high-cube cargo-worthy container prices rising by 20% over the past 90 days. North America was the most volatile market in that time, followed by East Africa and Southeast Asia.

The biggest spike came at Long Beach, California, where average container prices rose from $2,594 in October to $3,400 in November, a 31% increase representing a tightened market for container trading in the U.S.

The report described as “noteworthy” that the average container price across Canada rose by 23.3% from $2,086 in May to $2,570 in November. “This indicates a rebound in container prices in the latter half of 2024, driven by increased demand and supply chain pressures. Prices saw the largest percentage increase of 26.8% between May, $1,929, and November, $2,446,” the report stated.

Canada in that time suffered supply chain disruptions due to labor conflicts with unionized rail and port workers.

Conversely, China registered no change in average container prices from October to December. The port centers of Shanghai and Ningbo registered 5% and 2% spikes, respectively, but prices fell at Dalian, Shenzhen and Xiamen.

“While structural challenges like stagflation and persistent geopolitical tensions weigh heavily on the outlook for 2025, there is potential for persistent holding up of container shipping price flare-ups,” Roeloffs said. “Success will hinge on businesses staying agile, leveraging data, and preparing for both likely and unforeseen scenarios.”

In the outlook for 2025, the report said positive factors likely include a lowering of interest rates that will lead to lower container prices in the U.S. and Europe. Less likely was increased trade demand from a resolution to the war between Russia and Ukraine.

A likely negative factor is shipping overcapacity driving down freight rates and container prices. Unlikely: stagflation combining slower growth with higher inflation.

The report outlined developments that are expected to affect container logistics in 2025.

Geopolitical tensions, trade disruptions and Trump tariffs will exacerbate market volatility, giving rise to intra-Asia trade and similar newer, smaller, more localized routes. Transshipment hubs will emerge in Southeast Asia and the Middle East, offering a decentralized model that is more flexible and resilient in key shipping lanes.

Increasing trade tensions will reshape trade routes, such as China-Mexico-U.S. that are already growing for trans-Pacific commerce. Traders will have more options and reduced reliance on a single trade path as tariffs and sanctions impact costs and flow dynamics.

Increased operational costs from fuel prices, regulatory compliance and trade tariffs magnified by geopolitical issues, environmental regulations and disruptions will directly affect container traders, influencing shipping rates and operational planning.

Fleet expansion by liner operators is expected to continue, as carriers align with fluctuating demand and adapt to stricter environmental regulations. Investments now focus on more efficient, environmentally friendly vessels to meet new emissions standards while managing growing trade volumes.

Volatility will also lead container traders to prioritize flexibility with improved visibility across the supply chain. Real-time tracking and predictive analytics will help mitigate risks and speed more informed decisions.

The report said trade patterns will continue to evolve, with accompanying shifts in the volume of goods moving through certain regions due to tariffs, labor disputes, climate-related disruptions and other factors. Traders will have to adapt rapidly to changing conditions amid freight rate volatility.