Sun Country Airlines is a US airline focusing on leisure travel and cargo services. Operating from its hub at Minneapolis-Saint Paul International Airport, it has built a network covering North America, the Caribbean, and Central America. Balancing passenger and cargo transport, Sun Country contributes to regional economic development.
Mexico's exports to the US have reached record highs due to US tariffs on China, positioning it as a central hub in North American supply chain restructuring. The USMCA agreement guarantees zero-tariff advantages, fostering industrial upgrading. Mexico is evolving from a 'trade haven' to a core node in the industrial chain with R&D, manufacturing, and integration capabilities. This transformation has profound implications for the global trade landscape, demonstrating Mexico's increasing importance in international commerce and its ability to capitalize on shifting global economic dynamics.
Hub Group has formed a joint venture with EASO to capitalize on nearshoring trends and expand its cross-border intermodal operations in Mexico. This collaboration will leverage EASO's strengths in the Mexican market and Hub Group's logistics technology to enhance cross-border service capabilities, optimize North American supply chains, and create synergies and growth opportunities for both companies. The partnership aims to provide improved and more efficient transportation solutions between the US and Mexico, addressing the increasing demand for nearshoring alternatives.
The Intermodal Association of North America (IANA) report indicates a slowdown in overall intermodal volume growth in Q2, but domestic container business performed strongly. Trailer volumes continued to decline, and international container growth faced headwinds. IMC data suggests increased momentum in truckload transportation. The market presents both opportunities and challenges moving forward, and its trajectory warrants close attention.
The Intermodal Association of North America reported that intermodal volumes in Q3 grew nearly 5% year-over-year, driven primarily by domestic container shipping. Despite economic uncertainty, the intermodal market demonstrated resilience, although the growth rate was the slowest since 2009. Industry experts suggest that intermodal transportation is gaining market share from trucking and is expected to maintain steady growth in the future. The increase highlights the continued importance of intermodal solutions for efficient freight movement across North America.
The Intermodal Association of North America (IANA) reported a 4.3% year-over-year decrease in North American intermodal volume in Q2, although the decline narrowed. Domestic container demand remained robust, increasing by 4.0%, while international standard containers faced challenges such as port congestion and COVID-19 lockdowns, resulting in an 8.4% decrease. The peak season impact is expected to diminish, leading to a more stable trend for the year. Inflation and high oil prices may present opportunities for intermodal transportation.
The Intermodal Association of North America (IANA) reports a strong start to the fourth quarter for the intermodal market, fueled by surging West Coast imports and robust consumer spending. Total intermodal volumes increased by 8.9% year-over-year in October, with international containers performing exceptionally well. Third-quarter intermodal volumes also saw continuous growth, driven by consumer spending. International volumes are expected to remain strong through year-end. Labor agreements and Lunar New Year traffic are anticipated to impact first-quarter volumes.
Toyota Material Handling and The Raymond Corporation announced their integration into Toyota Material Handling North America (TMHNA). This aims to leverage the strengths of both companies to provide more efficient and comprehensive material handling solutions. TMHNA will maintain the independence of both brands while integrating product lines, R&D capabilities, service networks, and supply chains. This integration seeks to improve efficiency, create greater value for customers, and lead industry development. The combined entity will offer a broader range of solutions and enhanced support for customers across North America.
North American companies are accelerating their efforts to reduce reliance on China, a trend often referred to as 'De-Sinicization'. Mexico and the United States are potentially the biggest beneficiaries of this shift. Geopolitical factors are a significant driver behind this supply chain reshaping, pushing businesses to diversify their sourcing and manufacturing locations. This move aims to mitigate risks associated with over-dependence on a single country and build more resilient and geographically diverse supply chains.
The merger between Canadian Pacific Railway (CP) and Kansas City Southern (KCS) has been overwhelmingly approved by both companies' shareholders, paving the way for the creation of the first single-line rail network linking Canada, the US, and Mexico. The merged company, 'Canadian Pacific Kansas City Limited,' aims to improve transportation efficiency and support economic growth across North America. Final approval from the U.S. Surface Transportation Board (STB) is expected in the fourth quarter of 2022.
