Kenco acquired Drexel's 3PL business, expanding its presence into the Canadian market. This acquisition strengthens Kenco's logistics capabilities across North America, with a particular focus on co-packing and filling services. The move allows Kenco to offer enhanced warehousing and distribution solutions to its customers throughout the region and further solidify its position as a leading 3PL provider.
The Arctic Route refers to the airways that fly over the North Pole or the Arctic Circle, connecting Asia, Europe, and Africa. Due to the Earth's spherical shape, this route offers the shortest flight path. Flights from China to North America via the Arctic significantly reduce travel distance and time, decrease fuel consumption and emissions, and enhance passenger experience. Flights are required to obtain overflight permits from Russia and Canada. In recent years, an increasing number of airlines have launched services on this route, indicating its rising importance.
A breakdown in negotiations between Canadian Pacific Railway (CP) and the Teamsters Canada Rail Conference (TCRC) has disrupted Canadian rail operations, potentially triggering a North American supply chain crisis. The two sides are deeply divided on issues such as wages, benefits, and working conditions, with each holding firm to their positions. Calls are mounting for a swift resolution to the dispute to prevent further damage to the Canadian economy. The ultimate outcome of this labor dispute will have a profound impact on the supply chain in Canada and across North America.
The Intermodal Association of North America (IANA) reported a first decline in North American intermodal volumes in five years during Q3, impacted by supply chain disruptions and weather events. While the year-to-date volume for the first nine months still shows growth, challenges and opportunities persist. Collaborative efforts are needed to strengthen infrastructure, optimize networks, increase labor availability, improve equipment utilization, and promote digitalization. These actions are crucial for reshaping supply chain resilience in the face of ongoing uncertainties and fostering future growth in the intermodal sector.
Data from the Association of American Railroads shows a significant increase in U.S. rail freight for the third week of February. Carloads rose by 38.2% year-over-year, and intermodal traffic increased by 26.3%. The across-the-board rise in commodity shipments reflects economic recovery. While North American rail freight is generally positive, year-to-date cumulative figures still need improvement. The growth in rail freight volume suggests economic expansion, but potential supply chain issues and inflation risks should be monitored.
Data from the Association of American Railroads shows a continued decline in U.S. rail freight volume in late April, with year-over-year decreases in both carloads and intermodal units. While automotive and agricultural product shipments saw growth, significant declines were observed in bulk commodities like coal and grain. Overall North American freight volume also trended downward. Multiple factors contribute to the challenges facing rail freight, necessitating solutions such as technological innovation, diversified services, and supportive policies to navigate the future.
US rail freight and intermodal volumes declined year-over-year, with coal and grain experiencing downturns. The overall North American market also saw a decrease. The industry faces challenges and needs to improve efficiency and service to remain competitive. This decline reflects broader economic trends and highlights the need for adaptation and innovation within the rail freight sector to overcome current obstacles and capitalize on future opportunities.
In August 2022, U.S. rail carload traffic increased by 2.9%, while intermodal volume decreased by 2.4%. For the full year, carload traffic remained flat, and intermodal volume declined by 5.5%. North American rail freight is facing pressure. This data reflects key economic trends impacting the transportation sector and broader supply chains. The contrasting performance of carload and intermodal shipments suggests shifts in freight demand and transportation strategies.
The Bank of America Freight Payment Index Q2 report indicates continued weakness in US freight market demand. Freight volumes and expenditures declined year-over-year, but the decrease narrowed, potentially signaling a market bottom. Shifting consumer spending patterns, regional variations, and cost pressures are key influencing factors. Experts advise carriers to adapt to market changes, embrace technological innovation, and strengthen cost control measures. The report suggests cautious optimism while acknowledging ongoing economic headwinds affecting the logistics sector. The need for agility and efficiency is paramount for navigating the current landscape.
Recent data reveals a mixed picture in the US rail freight market: carload traffic slightly increased, while container volume decreased. Gains were seen in automotive, coal, and agricultural shipments, offset by declines in metals and petroleum. Overall North American rail freight is down, signaling potential economic slowdown, inflationary pressures, and supply chain challenges. The future of rail freight will be influenced by economic conditions, energy prices, regulations, and technological innovation. These factors will determine the sector's performance and its role as a key economic indicator.
