North American Class 8 heavy-duty truck orders rebounded strongly in December, indicating easing supply chain pressures and robust market demand. However, production capacity bottlenecks remain a key constraint on industry development. Moving forward, industry players need to closely monitor market dynamics, proactively address challenges, and seize opportunities to thrive in the face of fierce competition.
Former Shipt executive Rina Hurst has joined Walmart GoLocal as Vice President, responsible for strategy and operations. This appointment aims to bolster Walmart GoLocal's efforts to scale its local delivery business and enhance its service capabilities. Hurst's experience at Shipt will be crucial in driving growth and optimizing operational efficiency for Walmart GoLocal as it expands its reach and offerings in the competitive same-day delivery market.
Cargill and CHS are expanding their joint venture grain export business, Temco, by adding a terminal at the Port of Houston. This move aims to enhance US agricultural export capabilities, particularly serving the Mexican market. The expansion seeks to bolster the international competitiveness of US agriculture, create more opportunities for farmers, and stimulate local economic growth. The Port of Houston's strong performance during the pandemic underscores its strategic importance in facilitating trade and supporting the agricultural sector.
The Intermodal Association of North America (IANA) reported a slowdown in intermodal volume growth in the third quarter, primarily due to decelerated international container growth. Despite challenges, e-commerce growth and potential tariff front-loading effects may drive future expansion. The industry needs to address issues such as competition from trucking and infrastructure bottlenecks. Solutions include improving efficiency, reducing costs, and embracing innovation to overcome these obstacles and maintain competitiveness in the evolving transportation landscape.
According to the Association of American Railroads, U.S. rail freight and intermodal volume both increased year-over-year in late April. Significant growth was observed in freight categories such as coal, motor vehicles & parts, and chemicals. Intermodal business also showed strong growth momentum. Despite challenges like supply chain bottlenecks and labor shortages, the recovery of rail transport has a positive impact on the economy. It is recommended to increase infrastructure investment and optimize supply chain management to further enhance the efficiency and reliability of rail transportation.
Canadian Pacific Railway (CP) acquired Kansas City Southern (KCS), creating the first single-line rail network connecting the United States, Canada, and Mexico. This aims to improve cross-border trade efficiency, enhance market competitiveness, promote North American economic development, and improve the environmental benefits of rail transport. The merged company, CPKC, will face challenges in cultural, operational, and customer integration. Its success will determine its position in the North American rail transportation landscape.
The U.S. Surface Transportation Board (STB) is reviewing the proposed merger between Canadian National Railway (CN) and Kansas City Southern (KCS), focusing on the voting trust agreement. This merger is a competition between CN and Canadian Pacific Railway (CP). The STB's decision will determine who ultimately controls the railway network connecting the three largest economies in North America, impacting regional trade and the competitive landscape of the industry.
The Transportation Intermediaries Association (TIA) is advocating for the "Motor Carrier Safety Selection Standard Act" to address road safety issues in the freight industry. This Act aims to establish uniform safety standards, clarify liability, and promote FMCSA reform. It is expected to improve road safety, promote industry standardization, and create a level playing field. However, the Act also faces challenges such as increased compliance costs and difficulties in enforcement. The legislation seeks to create a safer and more accountable environment for all stakeholders involved in the transportation of goods.
C.H. Robinson assisted shippers in navigating the logistical challenges posed by Hurricane Dorian by closely monitoring the storm's path, providing timely communication, offering alternative solutions, and leveraging its technology platform. Their proactive approach ensured minimal disruption to supply chains and helped clients mitigate potential risks associated with the hurricane. This highlights the importance of robust risk management strategies and agile supply chain operations in the face of natural disasters.
Navis acquired Octopi to provide cloud-based TOS solutions for small container and mixed cargo terminals. Octopi boasts cloud deployment, lightweight design, comprehensive functionality, real-time communication, and scalability, enabling smaller terminals to achieve efficient and intelligent operations management and enhance their competitiveness. This acquisition signifies Navis's further expansion of its product line, focusing on the small terminal market and contributing to the development of smart ports.
