Rising transportation costs and tight truckload capacity are creating more opportunities for intermodal rail in 2012, according to logistics executives.
Northeastern U.S. states are sometimes depicted as not particularly business friendly. But that hasn't deterred some major companies from locating in the Keystone State recently, not least of which is Volvo Construction Equipment Americas. For one thing, Pennsylvania's location makes it very attractive for companies that must get product to customers in a huge portion of the country within a day. And a pocket in Franklin County, in the south central part of the state, is helping them do just that.
Total U.S. business logistics costs in 2011 rose to $1.28tr, a 6.6-percent increase from the previous year, accounting for 8.5 percent of the country's gross domestic product, according to the 23rd Annual State of Logistics Report, presented by the Council of Supply Chain Management Professionals and Penske Logistics.
U.S. rail shippers don't appear to be heeding the warnings of a national economic slowdown. Intermodal volume in May on the major U.S. railroads hit the highest level in history for that month, according to the Association of American Railroads. Intermodal traffic last month was 3.5 percent higher than the same month a year ago. Although carload volume was down 2.8 percent year-over-year in the same period, the big losses were because of slumps in the major commodities of coal and grain.
For those interested in transportation management, the news that truckload rates are trending flat for the time being may be good, although on a year-over-year basis, May's index registered 5.0 percent higher than for the same period last year. The continuing share shift toward intermodal is at least one reason rates are being held in check.
time:matters, a logistics service provider specializing in expedited shipments, has launched a Europe-wide Harvest Season Weekend Service for agricultural shippers.
U.S. trade with Canada and Mexico using surface transportation in March set a new monthly high mark, up 6.2 percent over March a year ago, and pushing the sum value over $85.8bn, the according to the U.S. Department of Transportation.
The Caribbean logistics unit of Crowley Maritime Corp. has nearly doubled the size of its distribution center in Puerto Rico, with acquisition of a second warehouse next to its existing 70,000 square-foot facility distribution center in Guaynabo.
At a time when the pipeline industry is facing opposition to new projects, rail is surging. In the span of months, executives who had never considered moving oil by train are not just tinkering with rail shipments, but embracing them. While these shipments are small for now, by one estimate rail could be carrying 100,000 barrels a day out of Canada by next year; others have suggested more than 75,000 barrels a day is already moving by train.
The latest news, analysis, services and systems regarding rail and intermodal transportation and its impact on global supply chains. Today’s companies are transporting and delivering container shipments in a more efficient manner than ever before using new services and technologies that provide information en route - allowing them to stay ahead of the competition in their industries. As rail and intermodal cargo services continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies are using rail and intermodal shipping solutions to power their supply chains.
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