The trend in North American freight volumes continues to follow the path of general malaise that the economy is experiencing, according to Rosalyn Wilson, senior business analyst at Delcan Corporation. The number of freight shipments in June was up a scant 1.3 percent from the previous month, while at the same time total freight costs declined 0.1 percent. The economy has been flat
for several months and is even beginning to trend downward in terms of new orders and manufacturing output. This slowdown on manufactured goods is putting downward pressure on freight.
U.S. freight railroads will get $23bn worth of upgrades this year, and taxpayers won't pick up the tab. That's because the railroads build, maintain and improve their own infrastructure and even pay property taxes on their tracks. Also, freight trains are about three times as fuel-efficient as long-haul trucks, which means they help cut smog and reduce the U.S.'s carbon emissions and oil dependence. And forget those accident-prone trains your kids watch on Thomas the Tank Engine & Friends. In reality, shifting freight from roads to rails sharply reduces crashes and congestion.
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.
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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