Page 4 - Market Outlook Q4 2024

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Economic Overview

Trailer Industry to Navigate Complex Landscape in 2025…Continued from Page 3

Cybersecurity Risks Vedant Khamesra with AtoB, a fleet management company.
As the trucking industry embraces digitalization, cybersecurity risks
grow exponentially. Fleet operations are increasingly targeted by AI- Stolen cargo leads to missed delivery schedules, forcing fleets to reroute
driven cyberattacks, from phishing schemes to data breaches. These shipments, reallocate resources, or even cancel contracts. This reduces
challenges can disrupt trucking companies, leading to significant freight availability, limiting the company’s ability to meet customer
financial and operational losses. demands and potentially leading to reputational damage. Delayed
deliveries can also cause bottlenecks in downstream supply chain
Artificial intelligence is both a tool and a threat. While it enhances activities, affecting other stakeholders like retailers or manufacturers.
defenses, hackers also leverage it to develop sophisticated attacks.
For example, AI can generate convincing phishing emails or exploit Capital Expenditure Constraints
vulnerabilities in fleet management systems. Fleet managers need Economic uncertainties and market volatility are leading to deferred
to prioritize cybersecurity to safeguard sensitive data and maintain capital expenditures. Fleet operators are cautious about investing in
operational integrity. new equipment, affecting order volumes and production planning,
reports ACT Research.
Cargo Theft
Cargo theft remains a persistent challenge for fleet managers, with over- Addressing these challenges requires a multifaceted approach,
the-road operations often being the most vulnerable. Criminals target including strategic investments in technology, proactive compliance
high-value freight, and the financial losses from stolen goods, insurance with evolving regulations, and adaptive operational strategies to
claims, and delivery delays can strain trucking businesses, according to navigate the shifting economic landscape.

ILA-USMX Port Automation Dispute Intensifies as January Deadline Looms

As of Dec. 30, 2024, negotiations between the International a consensus on automation policies. While progress has been made
Longshoremen's Association (ILA) and the United States Maritime on other aspects of the agreement, automation remains a significant
Alliance (USMX) remain at an impasse, primarily due to disagreements sticking point.
over port automation. The current contract extension is set to expire on
January 15, 2025, raising concerns about potential disruptions at East Without a resolution, there is a looming threat of another strike, which
and Gulf Coast ports. could disrupt operations at some of the nation's busiest ports, affecting
supply chains and economic activities, according to gCaptain online
In October 2024, over 47,000 ILA members initiated a three-day strike news.
across 36 ports, demanding a 77% wage increase over six years and a
complete ban on automation. The strike concluded with a tentative Implications
agreement that included wage increases and a contract extension to A prolonged strike could lead to significant disruptions in the supply
Jan. 15, 2025, allowing time for further negotiations on unresolved chain, affecting the flow of goods and potentially leading to shortages
issues, notably automation. and increased prices.

The ILA opposes the introduction of semi-automated equipment, The previous strike had substantial economic repercussions, with
such as rail-mounted gantry cranes, citing threats to job security. estimates of GDP losses ranging from $4.5 billion to $7.5 billion per
USMX argues that automation is essential for modernizing operations week. A renewed strike could have similar or more severe impacts.
and maintaining global competitiveness, according to Global Trade
Magazine. Stakeholders, including supply chain managers and businesses reliant
on port operations, should closely monitor the situation and prepare
As the Jan. 15, 2025 deadline approaches, both parties have yet to reach contingency plans to mitigate potential disruptions.