UWL Virtual Freight Currents Recording 09102024

Introduction

Good afternoon, ladies and gentlemen! Thank you for attending our second virtual Freight Currents event. For those who don't know me, my name is Marilyn Driscoll (MD), and I serve as the National Sales Director at WL, dialing in from the lovely Garden State, New Jersey.

I was asked to host this event and thought, of course, a Sicilian should host everything. Interestingly, I learned that some colleagues had placed bets on whether I would drop any curse words during the event, so I encourage everyone to join in on the fun—drop your bets in the chat!

We have gathered a fantastic panel of experts this afternoon who will share their knowledge and insights on various important topics. It’s worth mentioning that, since much of the discussion will be driven by political or economic events, I want to remind everyone that the political views expressed here are not a reflection of UWL, although we value the dialogue they bring.

Let's introduce our first panelist: John Min, Chief Economist and Managing Director of Monx, who joins us back by popular demand from our first event in February. He will discuss the U.S. economic landscape, geopolitical conflicts, mortgage rates, and the upcoming election. Following John will be Peter Freeman from Tipping Point National, who will share insights into trade issues and election impacts. Lastly, we have Martin Ketki, VP of Solution Engineering at WL, discussing strategies for the 2025 contract season and the challenges for 2024.

Before we dive into the presentations, I want to thank my colleague Kelly Lynch, our moderator, who will be fielding questions throughout. If you have any questions, please use the chat feature. We hope to answer them all by the end of the event or follow up with responses later.

Now, let’s turn it over to John Min for his insights.

John Min's Key Insights

John shared that his company, Monx, has been consistently ranked as a top forecaster, and they see a soft landing for the U.S. economy. Recent GDP growth was approximately 2.2%, which aligns with the IMF’s projections. He discussed how inflation rates have been decreasing thanks to the Federal Reserve’s rate hikes, yet the unemployment rate has also risen from 3.4% to 4.3%.

John raised a few concerns, including the total public debt of the U.S., which has crossed $ 34 trillion, translating to a debt-to-GDP ratio of 120%. This elevated ratio has historically associated with slower economic growth. He also highlighted potential geopolitical issues, particularly conflicts affecting the Suez Canal, which could cause delays in shipping and affect inflation.

Peter Freeman's Perspective

Peter Freeman provided a deep dive into the current trade landscape, emphasizing the potential strike threat from the labor union responsible for cargo at East Coast and Gulf ports. Such a strike could severely disrupt imports and exports, leading to increased costs.

He noted that both political candidates—Biden and Trump—represent heightened protectionism surrounding trade policies, which could affect international commerce adversely. There’s a notable push from Congress toward protectionist measures, including tariffs, that may not favor growth.

Peter reminded everyone that efficient trade routes are being hindered, with the risks of labor actions compounded by fixing policies that may worsen supply chain resilience.

Martin Ketki on Strategies for 2025 Contracts

Martin wrapped up the session with strategies for the upcoming 2025 contract season, emphasizing the importance of thorough forecasting and early negotiations. He mentioned that shippers should avoid waiting until the last minute to secure contracts, as this often leads to unfavorable terms.

Understanding freight rates and anticipating potential surcharges is crucial for budget planning in the uncertain economic environment Martin discussed.

Conclusion

As we wrapped up the event, we wanted to thank everyone for their participation and insights. The panelists also addressed various audience questions, providing further clarity on pressing economic and trade issues. If you have any further questions or topics you'd like us to cover in future events, please feel free to reach out.

Thank you all again, and we hope to see you at our next session!

Keywords

• UWL
• Virtual Event
• Freight Currents
• Economics
• Trade Issues
• Inflation
• Unemployment
• Public Debt
• Protectionism
• Contract Strategies

FAQ

Q: What is the focus of the UWL Virtual Freight Currents event?
A: The event discusses key economic and trade issues, including insights from economists and industry experts.

Q: Who were the main panelists?
A: The panel included John Min, Peter Freeman, and Martin Ketki.

Q: What economic landscape was discussed?
A: The discussion covered GDP growth, inflation trends, and unemployment rates in the U.S.

Q: What concerns were raised about trade?
A: Potential labor strikes and the protectionist stance of both political candidates impacting the trade environment were discussed.

Q: How can shippers prepare for the 2025 contract season?
A: Early negotiations, thorough forecasting, and understanding freight rates were emphasized as key strategies.