Despite the implementation of the updated Air Cargo Advance Screening requirements being pushed back to May 2027, compliance will be difficult, industry leaders told the Tiaca conference.
The second-largest US LTL provider by revenue sees more positive indicators early in the fourth quarter after sequential gains in tonnage through September.
The railroad said some systems were gradually returning to service, but that significant operational restrictions remained due to the outage, which began Tuesday and was determined to not be a cyberattack.
The strike threat from unionized security personnel comes as the Southern California gateway is already experiencing congestion and rising rail container dwell times due to record or near-record container volumes this summer and fall.
The new ships join a ballooning backlog of vessels that has swelled to more than 200 ships totaling 2 million dwt, equivalent to 23% of the existing fleet, according to data from shipbroker Clarksons.
Management said on the company’s third-quarter earnings call that early bidding opportunities could require average double-digit rate increases, although it cautioned it was too early to forecast pricing for the entire year.
Notwithstanding the rate correction, sources believe unchanged or only slightly lower westbound allocations on the lane have kept carrier spot asks from crashing more steeply.
The company cut costs in FY2026 through several operational improvements, such as reducing inventory levels, President and CEO Steven Brass said.
Early customers for Optimus robots would use them for industrial applications, such as dangerous, repetitive tasks, CEO Elon Musk said.
The artificial intelligence chipmaker signed deals with six suppliers to scale production of certain components by as much as 15-fold.
