AGP Executive Report

Diesel and Trucking: U.S. diesel has surged about 70% since the Iran war began, averaging $6.28 a gallon. President Trump says Russia will begin supplying diesel immediately, with larger shipments planned, but industry voices warn the deal may not quickly ease the refined-fuel shortage squeezing truckers and farmers. Storm Disruptions: Hurricane Isaias has shut in nearly 63% of Gulf oil output. Alabama DOT is suspending temporary lane closures through Sunday to help keep routes open, while urging drivers to avoid unnecessary travel. Freight and Ports: U.S. intermodal freight volumes remain elevated, and September container imports reached a record for the month. A new Accordia Shipping service will add the Dominican Republic’s Caucedo port to its South Florida routes, widening cargo options. Infrastructure: A $1 million state loan will support expansion of the Port of Columbia rail project.

Fuel & Freight: Record diesel costs are squeezing U.S. trucking, with carriers facing higher operating expenses and some firms filing for bankruptcy. Maritime Shipping: Strait of Hormuz attacks have driven tanker rates sharply higher and disrupted traffic, adding pressure to fuel and freight costs. Cross-Border Trade: U.S. small-parcel shipments fell 70% by weight after tariff exemptions ended, while Alberta is adjusting hours at four crossings to match U.S. entry points, including for commercial traffic. Warehousing: Walmart opened its fifth next-generation fulfillment center in Stockton, California, adding West Coast capacity and aiming to speed deliveries. Rail Investment: USDOT awarded $416 million for Florida rail-crossing safety upgrades and a new Brightline station. Aviation Safety: The Army found systemic failures behind last year’s deadly Washington-area midair collision and called for safety fixes. Autonomous Trucking: Kodiak launched a driverless trucking route between Dallas and Laredo.

Aviation: American Airlines will begin installing SpaceX’s Starlink internet across its mainline fleet of more than 1,000 aircraft next year. Separately, an Army review found systemic failures behind last year’s fatal Washington-area midair collision and called for safety fixes. Freight and Ports: U.S. container imports reached a record September volume, but port traffic is now easing after an extended peak season. Chicago-area ePost Global has tripled its processing footprint to handle rising cross-border parcel volumes. Rail: USDOT awarded $416 million for Florida rail-crossing safety upgrades and a new Brightline station. Autonomous Trucking: Kodiak launched a self-driving truck route between Dallas and Laredo, while federal exemptions allow autonomous fleets to use flashing beacons instead of warning triangles. Fuel and Shipping: Attacks on ships in the Strait of Hormuz and Hurricane Isaias’s disruption to Gulf oil production are driving fresh concerns about fuel prices and shipping costs.

Rail Investment: USDOT awarded Florida $416 million for safety upgrades at 910 rail crossings and a new Brightline station in Cocoa; the state is adding $100 million. Supply Chains: Nippon Express launched a five-day delivery option from the Port of Los Angeles to U.S. destinations, using two-driver teams and real-time cargo tracking. Air Freight: Shippers are favoring flexible three-month deals as volatility makes fixed annual contracts risky; those contracts fell to 25% of new agreements, from 40% a year earlier. Trucking: Diesel averaged $6.30 a gallon, up more than 70% year over year, while industry groups say expanded access to dyed fuel offers little relief. A trucking company’s bankruptcy underscores the strain. Automation: Kodiak launched an autonomous trucking route between Dallas and Laredo. Seasonal Shipping: UPS plans to hire 100,000 workers for the holiday rush. Road Safety: Connecticut is planning signal replacements at 12 intersections, including upgrades to pedestrian signals, accessible buttons and sidewalk ramps.

Diesel Costs: Truckers and farmers say the federal move allowing dyed diesel on public roads offers little relief as fuel prices soar; a nationwide trucking company has filed for bankruptcy amid the diesel shock. Autonomous Trucking: The U.S. granted Aurora an exemption from a safety-feature requirement, a notable step for driverless freight operations. Shipbuilding: Anduril and the Navy are backing a $6.6 billion Maryland shipyard to expand submarine production, with the project expected to create more than 3,100 jobs. Fleet Electrification: FedEx is investing $300 million in electric trucks as it converts its U.S. fleet. Rail Freight: Intermodal volumes are climbing far faster than other commodity traffic, signaling stronger container growth on U.S. railways. Road Safety: AAA says unbelted occupants account for nearly half of traffic deaths, underscoring a persistent safety gap despite high overall seat-belt use.

Shipbuilding: Anduril and the Navy plan a $6.6 billion Maryland shipyard to make Virginia-class submarine components, with operations targeted for 2030 and more than 3,100 jobs expected. Hanwha Philly Shipyard also won a contract for the first of up to three missile-range vessels for MARAD. Trucking Costs: Midwest Expedited filed for Chapter 11 as diesel prices remain elevated, adding to a wave of trucking-sector bankruptcies. A temporary federal order lets truckers use tax-free dyed diesel, though fuel sellers have been warned about compliance. Passenger Rail: A $57 million federal grant fully funds Brevard County’s first Brightline station, planned for Cocoa near State Road 528. Freight Technology: Einride and EASE Logistics say driverless electric trucks are now moving freight daily on Ohio roads. Road Safety: NHTSA is rewriting headlight rules to address nighttime glare and accommodate newer lighting technology.

Defense & Maritime Industrial Base: Trump, Navy and Anduril launched the $6.6B “Arsenal-2” shipyard at Sparrows Point, Maryland, aiming to expand Virginia-class submarine component production and autonomous underwater vessel work, with thousands of jobs expected. Autonomy Testing: The U.S. Navy delivered a Joint Digital Autonomy Range framework to Australia to test autonomous aircraft concepts in a virtual environment before flight. Federal Shipyard Work in Alaska: NOAA Ship Oscar Dyson arrived in Ketchikan for a nearly $100M modernization at the AIDEA-run shipyard, supporting broader federal vessel upgrades. Road & Bridge Updates: Arkansas officials highlighted the $282.5M I-49 Arkansas River Crossing project, while Nevada began overnight lane reductions on U.S. 395 for bridge resurfacing. Fuel Policy for Trucking: Trump’s red-dye diesel order and state follow-through (including Iowa and others) could lower costs for some haulers, but industry groups warn it’s not a full tax waiver. Logistics & Equipment Abroad: Morocco bought 100 U.S.-made trailers to move tanks and armored vehicles more efficiently. Aviation Disruption: British Airways reported an emergency descent and long circling after a technical issue on a flight to Chicago. Public Health & Supply Chain Risk: Russia’s reported plague-lab death in Siberia is prompting quarantine and transparency demands, with low stated public risk but real operational uncertainty.

Diesel Relief for Truckers: Trump temporarily expanded use of tax-exempt red-dyed diesel on U.S. highways and deferred federal highway diesel excise tax collections through end-2026, aiming to blunt record fuel costs for trucking and farming. Fuel Prices & Trade Pressure: A separate report says the U.S. trade deficit hit a 17-month high in August, with imports rising faster than exports—another headwind for logistics demand. Maritime Security & Shipping Costs: With Iran-linked attacks continuing in the Strait of Hormuz, oil shipments are getting costlier as sailors face higher risks, adding friction to global supply chains. Rail & Grain Flows: CPKC set new September and third-quarter records hauling grain across Canada and the U.S., underscoring steady bulk demand into the 2026-2027 crop year. Infrastructure Updates: A major U.S. 74 bridge replacement in North Carolina is underway to add lanes and improve multi-use access, while Kentucky will remove a traffic signal at U.S. 31-EX and Front Street in Glasgow after counts no longer met federal signal guidelines. Legal/Regulatory Watch: The U.S. Supreme Court declined to hear Maine’s challenge to 24/7 GPS monitoring for the lobster fleet, ending the tracking lawsuit. Aviation/Defense Industrial Base: Anduril plans a $3.7B Maryland shipyard investment for Virginia-class submarine components, supporting Navy production capacity.

Safety Push: West Virginia’s GHSP and NHTSA kick off National Pedestrian Safety Month, urging drivers to slow down and watch for pedestrians as national data shows 7,080 pedestrian deaths in 2024 and 18% of all traffic fatalities. Maritime & Defense: The Navy commissions USS Ted Stevens in Whittier, Alaska, with the ship homeported in Norfolk; separately, BAE Systems wins a $16M Collins contract to deliver M-Code GPS for the U.S. Navy’s carrier landing system. Logistics & Shipping Tech: Hyundai Glovis and Liberty Global Logistics will study SMR-powered pure car and truck carriers, aiming for long-term navigation without refueling. Infrastructure Work: The U.S. Army Corps starts dredging the Lewes & Rehoboth Canal through March 2027, moving about 89,000 cubic yards to two placement sites—prompting homeowner concerns. Aviation Incident Update: The Coast Guard identifies all six aboard a missing Canadian air ambulance off Massachusetts. Policy Watch: CBP’s planned Oct. 22 move to end the de minimis exemption for mail shipments threatens access to personally imported prescription drugs.

Border Drone Defense: The U.S. Army is testing counter-drone weapons along the Mexico border after detecting 378 drone incursions in 30 days, with many linked to cartel smuggling and surveillance. Aviation Safety & Policy: Lawmakers are pushing the FAA to require epinephrine on all flights after a proposed rule would only let airlines “could include” it in emergency medical kits. Port & Trade: DP World is moving toward a U.S. comeback, with Corpus Christi signing a lease option to develop a container terminal targeting up to 1 million TEUs. Infrastructure: The new Mississippi River Bridge at Lansing, Iowa, is set to open Nov. 6—well ahead of the original spring 2027 plan. Public Health: U.S. officials are monitoring a suspected plague case in Russia after a lab worker’s death, while CDC and partners coordinate precautions. Logistics & Food Waste: New food scrap pickup services are expanding nationwide, including programs seeking items like coffee grounds and eggshells.

Aviation Safety: The U.S. Coast Guard suspended its search for six people after a Gulfstream G100 medical flight vanished off Nantucket; debris was found and an investigation is underway. Energy & Shipping: Oil prices slipped as G7 agreed to release 100 million barrels of crude and diesel from strategic reserves, while Middle East exports rose despite Strait of Hormuz attacks. Highway Planning: Ohio released the final feasibility study for a U.S. 23/I-71 connector north of Columbus, including a recommended corridor and early traffic/tolling models. Port/Materials Handling: HD Hyundai XiteSolution began mass-producing 10–18 ton heavy-duty electric forklifts for shipyards and ports, touting up to nine hours per charge and fast-charging options. Defense Industrial Base: The Navy commissioned the guided-missile destroyer USS Ted Stevens, built in Pascagoula, as it heads to homeport in Virginia. Logistics/Trade: A roundtable in New York highlighted how U.S. investors want long-term, locally supported infrastructure capacity on NATO’s eastern flank.

Aviation Emergency: The U.S. Coast Guard kept searching Sunday for six people aboard a Gulfstream G-100 medical transfer jet that vanished after losing contact en route from Bermuda to Boston; a debris field tied to the aircraft was found off Nantucket, and crews are now using sonar to scan the seabed while fixed-wing aircraft, helicopters, boats, and cutters cover a large area. Public Safety & Roads: Missouri’s MoDOT outlined mid-Missouri roadwork running Monday through Sunday, including intermittent and longer single-lane closures on I-70. Local Traffic Disruptions: Kentucky warned U.S. 60 is blocked in Crittenden County after a semi-truck crash, and Idaho’s ITD detailed detours and turn restrictions near a Pocatello Costco as Yellowstone Avenue concrete replacement begins Monday. Logistics & Policy: USPS announced holiday shipping price increases via a temporary peak-season surcharge request to the Postal Regulatory Commission. Infrastructure for Response: Wyoming cut the ribbon on a new $7.5M Casper aviation helibase to speed wildfire response.

Aviation Emergency: The U.S. Coast Guard confirmed a debris field tied to a missing Gulfstream G100 medical transport plane carrying six people off Nantucket, after the FAA lost contact with the Bermuda-to-Boston flight; search crews continue overnight with cutter William Sparling and multiple air assets. Port & Supply Chain: New reporting highlights how U.S.-China tensions can quickly ripple through the Port of Long Beach and Port of Los Angeles, given China’s outsized share of cargo and the ports’ role in trucking, rail, warehousing, and distribution. Tech & Trade Controls: Federal authorities arrested California entrepreneur Greg Lui over an alleged scheme to ship export-controlled AI server hardware to China via third countries, underscoring enforcement pressure on logistics networks. Public Safety Tech: Gunnison, Colo. ended its contract with Flock after police cited a plate-number mix-up tied to a high-risk traffic stop. Energy Security: The U.S. deployed additional Patriot batteries to Saudi Arabia and Qatar to protect oil and gas infrastructure amid heightened regional risk. Aviation Security: Investigators probe alleged Australian links tied to a FlyDubai co-pilot accused of attacking a captain with a cockpit axe during a near-crash.

Aviation Safety: The U.S. Coast Guard is searching off Nantucket, Mass., for a Gulfstream G-100 medical transfer plane carrying six people that lost contact after departing Bermuda for Boston; the FAA issued a search-and-rescue alert and air and sea crews are involved. Rail Security: In Rankin County, Miss., a freight train was stopped about 200 yards from a SUV that drove onto tracks; the driver allegedly tried to carjack a motorist afterward and was taken into custody. Road & Freight Disruption: Maine DOT warned of a slow, oversized heat recovery steam generator move starting Oct. 29 from Jay, with convoy operations and rolling road closures across multiple routes. Defense & Industrial Base: The Pentagon awarded Raytheon a $24.4B contract to accelerate SM-6 missile production amid stockpile concerns. Logistics & Energy Markets: G7 nations agreed to release 100 million barrels of diesel and crude from emergency reserves and pledged to avoid energy export restrictions after U.S. pressure. Truck Jobs: Navistar’s Springfield, Ohio, truck plant is closing, laying off about 1,400 workers just days before a Trump rally. Aviation/Defense Industry: Lockheed Martin confirmed it will participate in Morocco’s Marrakech Airshow 2026 and host an industry day to line up local suppliers.

Bridge Disruption: Russian aerial strikes forced partial closures of three Kyiv bridges, snarling traffic and underscoring how quickly logistics can get hit by hybrid tactics. Truck Freight Pressure: Diesel prices are squeezing trucking firms to the brink, with multiple carriers filing for bankruptcy and drivers facing record fuel costs. Port & Sanctions Risk: Iran-linked tankers are idling off Sri Lanka as U.S. sanctions tighten, raising knock-on risks for shipping services, ports, and dollar-based finance. Rail Yard Fight: Chicago residents and officials are pushing back on a proposed 24-hour Amtrak/UP maintenance facility at the Canal Street rail yard, with Amtrak absent from one community meeting. Legal/Privacy: A federal appeals ruling lets a truck-driver class action against Union Pacific move forward over alleged fingerprint scanning under Illinois’ biometrics law. Aviation Security: A FlyDubai co-pilot incident has triggered travel disruptions and renewed scrutiny of airline security vetting. Infrastructure Planning: Kentucky accelerated a Twin Bridges traffic crossover ahead of Monday commutes while repairing damage to a support beam. Energy Deal Pressure: Trump threatened to “charge more” to South Korea if it won’t invest in Alaska LNG, adding uncertainty to LNG supply-chain timelines.

Aviation Safety: The NTSB says Miami air-traffic controllers didn’t warn pilots of an Amazon cargo crash about potentially strong tailwinds before the plane overran the runway, a key detail regulators require when tailwinds exist. Rail Infrastructure: Crews have started drilling on a new $16 billion Hudson River train tunnel to add two rail tunnels for Amtrak and NJ Transit, targeting completion in 2035. Maritime & Ports: The U.S. Coast Guard seized Cuba-bound ships carrying thousands of gallons of diesel, citing illegal fuel shipments tied to the ongoing fuel blockade. Energy & Trucking Costs: G7 nations agreed to release up to 100 million barrels of diesel and refined products after U.S. pressure, as diesel prices near record levels keep squeezing owner-operators. Defense & Logistics: The U.S. is weighing renewed Iran action with additional carrier and troop deployments, while Patriot batteries were added to Saudi Arabia and Qatar to protect energy infrastructure. Policy Fight: A coalition of attorneys general, led by Illinois AG Raoul, sued to challenge NHTSA’s rollback of fuel economy standards. Tech Connectivity: AT&T, T-Mobile, and Verizon formed a satellite-enabled connectivity venture to reduce dead zones and improve emergency coverage.