Rail to prosperity: rail freight market poised for growth
In the modern logistics era, the rail freight industry is becoming the cornerstone of global trade, and its market valuation is expected to reach a staggering US$522.4 billion by 2032. With its inherent advantages of cost-effectiveness, sustainability and reliability, rail freight is on a path to unprecedented growth. This article delves into the driving forces behind this emerging market, its challenges and future opportunities. Also read: U.S. rail industry faces uncertain future amid economic and policy challenges Current status of railway freight Rail freight has long been a mainstay of the industrial economy, providing a reliable means of transporting goods over long distances. It is particularly favored by bulk commodities such as coal, minerals and agricultural products, but recent trends point to its growing role in intermodal transport, where goods are transported in containers that can move seamlessly between trucks, ships and trains move. 2022, global rail freight market The industry is already a robust one, benefiting from increasing globalization…
Trucking and Intermodal Industry: Guiding Demand and
The trucking industry has seen a complex interplay between demand and capacity dynamics in recent months. A recent FreightWaves article noted that declining truckload demand masks freight capacity exiting the market, in part due to seasonality. Although the National Outbound Bid Volume Index (OTVI), SONAR's primary measure of bid volume, fell 2% year-on-year, bid rejection rates and spot rates increased, indicating a capacity-driven tightening trend. Analysts expect these rates could rise further as demand strengthens during the traditionally busy months starting in March. Also read: Cargo volumes plummet in December, trigger rates rise At the same time, the intermodal industry experienced one of its strongest years on record. Data from the Association of American Railroads confirms that 2024 is the third strongest year in history for intermodal traffic, with December 2024 recording the highest December intermodal traffic on record. This growth was primarily driven by strong consumer spending and import activity, as shippers utilized intermodal solutions despite challenges with rail…
Freight volume plummets in December, trigger rate
Cass Information Systems highlighted that the latest data showed a significant decline in freight volumes in December. The report noted that while expenditures were less affected, it indicated an increase in shipping costs during the month. This is consistent with data from the IndexBox platform, which tracks freight market trends. Also read: Post-Christmas rejection surge in U.S. truckload market According to the Cass Freight Index, freight volume fell 7.3% from November and 6.5% year-on-year. The figures reflect the largest annual decline since January 2024 and the lowest index reading since June 2020. Notably, the index primarily covers trucking, with most freight modes experiencing downturns, including less-than-truckload, rail and parcel shipments. Seasonal trends and holidays are factors, as are shippers speeding up deliveries to forestall a possible dockworker strike. The freight expenditure index, which reflects total freight expenditure including fuel costs, fell 2.6% month-on-month but rose 0.5% on a seasonally adjusted basis. The economic downturn in December this year was associated…
Freight forwarder reaches settlement with OFAC after acquisition
December 2, 2024We are pleased to announce Export Compliance Manager is now part of Dow Jones Risk & Compliance By combining ECM's in-depth reporting and insights with Dow Jones' industry-leading news, data and analysis, we help compliance and trade practitioners better navigate the increasingly complex trade compliance environment.Learn more about ECM and Dow Jones Risk & Compliance Please check the announcement.
US port strike looms: Surcharges send freight rates soaring
Shipping lines prepare for disruption on January 15 The upcoming January 15, 2025, strike by dockworkers on the East Coast of the United States is having an impact on the logistics industry, pushing up freight rates and triggering surcharges from major shipping companies. Negotiations between longshoremen and terminal operators remain deadlocked, prompting industry stakeholders to brace for major supply chain disruptions. Also read: Contract talks stalled, East Coast port strikes loom, carriers brace for fallout Leading carriers launch surcharges To mitigate the potential impact, carriers including Maersk, CMA CGM and Hapag-Lloyd have announced surcharges on several routes. Maersk: USD 1,500 per TEU, rising to USD 3,780 for a 45-foot container. CMA CGM: USD 800 per TEU for exports and USD 1,500 for imports. lloyd table: Work interruption surcharge applicable to multiple regions, with additional charges for East Asian imports. Freight rates on major routes rise Freight rates climbed sharply, reflecting the uncertainty surrounding the strike. Shanghai Container Freight Index (SCFI)…
Carriers regain ground in seasonal freight negotiations
The latest FreightWaves Supply Chain Pricing Power Index shows that shippers' pricing power rose to 40 this week from 35 the previous week, indicating a shift in negotiating power back to carriers. Also Read: Challenges Facing Low-Cost Carriers (LCCs) Seasonal declines in freight volumes are typical for this time of year, primarily due to mid-week declines over Christmas and New Year, causing volumes to slow earlier than usual. Analysis by FreightWaves using its SONAR platform showed that the Outbound Tender Volume Index (OTVI), which tracks national freight demand, fell 5.4% month-on-month and 2.43% year-on-year. Despite the broader decline, some of the largest U.S. markets, such as Southern California and Dallas, saw slight increases in tender volumes. In contrast, markets such as Atlanta and Chicago fared poorly, with weekly volumes down 2.34% and 6.3% respectively. On the capacity side, the market is experiencing an increase in bid rejection rates - reflecting tighter conditions. The Outbound Tender Rejection Index (OTRI) surged 286…
Beat the cold with aggressive fleet winterization
As any truck driver or fleet manager knows, winter weather and icy conditions can be especially difficult on logistics operations. If a vehicle is poorly prepared, it can lead to costly breakdowns, construction delays, and even road safety hazards, ultimately impacting the bottom line. Also read: Clean fleet revolution or gamble? California’s Bold Initiative and the Future of Transportation As temperatures drop and snow falls, it becomes critical to implement proactive winterization. Discover the most effective ways to combat the cold and keep your fleet in top working order during the colder months. Checklist of Fleet Winterization Strategies for Logistics Professionals Before the cold winter months arrive, savvy fleet operators prepare their vehicles for harsh conditions by implementing a thorough maintenance checklist. These steps form the basis of a robust winterization strategy to ensure resilience throughout the cold season. 1. Check and test the battery Many commercial trucks run on 12-volt coupled batteries, which are particularly susceptible to cold weather…
Speedy Freight strengthens U.S. operations with new Dallas office
UK-based same-day delivery and logistics company Speedy Freight has significantly expanded its footprint in the US market with a new headquarters and 50,000 sq. ft. warehouse in Irving, Texas. This $1.5 million strategic investment places the company at the center of U.S. logistics, close to Dallas-Fort Worth Airport, a key hub for the global supply chain. The Dallas facility will serve as Speedy Freight's U.S. headquarters and training academy, offering state-of-the-art training programs certified to ISO 9001, 14001 and 27001 standards. This marks a key step in the company’s mission to become a leader in logistics brokerage and franchising, focused on delivering tailor-made, high-quality logistics solutions. Promote U.S. market expansion Speedy Freight's U.S. operations aim to capture market share in key services such as full truckload (FTL), less than truckload (LTL), haulage and expedited solutions. Leveraging proprietary in-house technology, the company is dedicated to supporting small and medium-sized businesses with efficient and customizable logistics systems. In addition to freight services,…
Clean fleet revolution or gamble? California’s bold move and
On April 28, 2023, California authorities approved a rule to phase out the sale of medium- and heavy-duty trucks with internal combustion engines by 2036. The milestone supports Gov. Gavin Newsom's larger goal of a complete transition to zero - emissions modeling for all trucks in use in the state by 2045. Also Read: Ergonomic Support for Truck Fleets Advocates for the Advanced Clean Fleet Rule say it would bring improvements to some of the state's most vulnerable communities, which are located in transportation corridors or near busy warehouses where the air is permanently polluted. They also say the trucking industry will save billions of dollars by switching to cleaner vehicles. However, not everyone is enthusiastic about the mandate, with some opponents expressing their displeasure en masse. What are the requirements of the Advanced Clean Fleet Rules? Trucking companies subject to ACF regulations must replace vehicles equipped with internal combustion engines within a specified period of time. The Advanced Clean…
Serbia and Croatia now have direct rail freight services
ÖBB Rail Freight Group (RCG) has launched a direct rail freight route connecting Belgrade, Serbia, and Rijeka, Croatia, creating an important link between the Serbian rail network and the Adriatic coast. This new transhipment route will enable cargo arriving at the Adriatic Gate Container Terminal (AGCT) in Rijeka to be seamlessly transferred onto Serbia’s rail network. Also read: EU and US push ahead with major rail freight plans AGCT is Croatia's largest port, handling more than 70% of Serbia's import and export freight. The Belgrade-Rijeka route follows other recent RCG routes, such as the Krusevac-Budapest-Duisburg corridor connecting Serbian manufacturing centers with Hungary and Germany, further integrating Serbian logistics into European trade routes. The TransFER Belgrade–Rijeka service is operated using RCG's own locomotives and rolling stock and each train can accommodate up to 76 twenty-foot equivalent units (TEU), with container sizes ranging from 20 to 45 feet. The route promises regular, faster freight to support Serbia's growing economy, with one or…
U.S.-Mexico cross-border freight volume hits record high
Cross-border trucking volume between the United States and Mexico hit a new high in September. Ahead of the November presidential election, trade between the two North American powerhouses increased by 52% and 30% year-on-year in September alone. Also read: Trucking industry makes slight progress, but full recovery still elusive The first seasonal restocking rush is in preparation for Halloween. With major chains like Lowe's and Home Depot preparing holiday decorations for Thanksgiving and Christmas soon, supply chain stability is now more important than cost savings. This has led retailers to abandon timely, low-inventory replenishment in order to increase stability and reduce volatility. Chinese companies with manufacturing centers in Mexico have contributed to the trucking boom. The tariffs imposed by former President Donald Trump in 2018 led to many Chinese companies locating in Mexico to avoid costly import duties. While technically legal, Biden and the former Trump administration expressed frustration with this "back door" into the United States. For retailers, however,…
Trucking industry improves slightly, but recovers across the board
After 27 consecutive months of declines, the average cost of transporting goods by truck is expected to be This month increased by 0.2% year-on-year. The modest growth has some speculating that the trucking recession may be nearing its end. However, many in the industry remain cautious, waiting for more substantial and lasting signs of recovery before being fully optimistic. Also Read: Embracing Inclusion and Diversity to Address the Trucking Industry’s Workforce Shortage Many in the industry are hesitant to declare a full recovery because interest rates remain weak due to excess capacity. The Morgan Stanley Dry Van Freight Index shows that the 2023 average remains well below the 10-year average, with little improvement in 2024 forecasts. This was exacerbated by a 45% year-over-year increase in Class 8 truck orders, which inflated overall trucking capacity. As a result, rates have struggled, with DAT Freight and Analytics reporting that spot rates for dry trucking have fluctuated between $2.01 and $2.20 per mile…
Freight forwarders turn strike focus to hurricane aftermath
While concerns about last week's port strikes are beginning to recede, freight forwarders are increasingly concerned about the impact of a series of storms hitting the southern United States. Also read: Allen mobilizes for Hurricane Milton as supply chain prepares for another major storm While longshoremen agreed to suspend the strike for further negotiations, three days of chaos along the East and Gulf Coast initially raised concerns about severe supply chain delays. However, the impact appears to be minimal due to proactive measures such as early loading of cargo before the strike. "Our average delays are about a week, but in some cases we are seeing faster deliveries," said Jackson Campos, director of Brazil-based AGL Cargo. "We anticipated the strike and Goods were shipped ahead of schedule, but even goods transshipped during the strike arrived on time. ” Campos, however, is more worried about the ongoing hurricane season. After Hurricane Helene hit Florida and Georgia in late September, several ports…
Ergonomic support for truck fleets
For millions of Americans, truck driving is a viable career that offers substantial rewards. The job also greatly increases the likelihood of musculoskeletal disorders and other problems. In fact, about four out of five truck drivers report suffering from one of these conditions in the past year, often involving neck or lower back pain. Ergonomic support can change these possibilities by improving the work environment and minimizing stress on the truck driver's body. By considering these factors, businesses can understand the importance of maintaining ergonomics in their truck fleet. Also Read: The Road Ahead: States with the Most Truck Drivers in 2024 How Truck Driving Can Cause Musculoskeletal Problems Driving a truck requires a large number of movements that, if repeated over the years, can lead to severe pain and other problems. A 2015 study showed that truck drivers are most likely to experience neck or lower back pain as a result of their work, but they may also experience…
Georgia Ports celebrates truckers, highlights industry
The Georgia Ports Authority (GPA) is honoring truckers during National Trucker Appreciation Week to recognize the vital role they play in the global supply chain. “Our partners in the trucking industry are the critical link between our global vessel services and our domestic supply chain,” said Griff Lynch, GPA President and CEO. To celebrate the day, GPA employees will be handing out safety gloves, water bottles and chicken sandwiches at the truck gates at the Garden City Terminal at the Port of Savannah. Lynch stressed the importance of keeping trucks running smoothly, noting that the efficiency of the Port of Savannah allows drivers to complete up to eight truck turns per day, compared to just two per day at Southern California terminals. Savannah is able to handle 80% of truck traded import and export container movements in both directions, significantly reducing truck trips, minimizing diesel emissions, and increasing driver profitability. In July and August, truck turn times were as low…
TIA report shows freight industry fraud crisis growing
The Transport Intermediaries Association (TIA) has released its 2024 State of the Industry Fraud Report, revealing the growing threat of fraud in the transport and logistics industry. The report provides a comprehensive analysis of financial losses and highlights the urgent need for stronger protection measures as fraud continues to surge throughout the supply chain. See also: Maintaining a secure supply chain: Responding to a surge in fraud and cargo theft “Our industry is suffering, and authorities are not giving us enough support to deal with this crisis,” said Anne Reinke, president and CEO of TIA. “Fraud in the supply chain not only affects businesses, but also consumers and the economy as a whole. This is a multi-million dollar problem that requires immediate action.” The report, based on responses from 200 TIA members, details the most common types of fraud, regional hotspots and the products most often targeted. It also highlights the heavy financial burden that fraud places on businesses and…
TIA report shows freight industry fraud crisis growing
The Transport Intermediaries Association (TIA) has released its 2024 State of the Industry Fraud Report, revealing the growing threat of fraud in the transport and logistics industry. The report provides a comprehensive analysis of financial losses and highlights the urgent need for stronger protection measures as fraud continues to surge throughout the supply chain. See also: Maintaining a secure supply chain: Responding to a surge in fraud and cargo theft “Our industry is suffering, and authorities are not giving us enough support to deal with this crisis,” said Anne Reinke, president and CEO of TIA. “Fraud in the supply chain not only affects businesses, but also consumers and the economy as a whole. This is a multi-million dollar problem that requires immediate action.” The report, based on responses from 200 TIA members, details the most common types of fraud, regional hotspots and the products most often targeted. It also highlights the heavy financial burden that fraud places on businesses and…
US freight demand remains stable, container prices remain stable
The global container shipping industry continues to witness an increase in demand for US freight, with 59% of supply chain professionals surveyed in August 2024 affirming this, while 30% of respondents said they did not observe a sustained increase in demand and 11% remained unsure about the trend. This also explains the continued upward pressure on US container prices and the above-average container leasing rates from China to the US. Figure 1 US freight demand survey conducted by Container xChange in August 2024 "Looking ahead, the key question remains: how will freight and container prices evolve over the next 3 to 6 months? On the one hand, several factors are likely to keep freight rates high or at least stable. For example, ongoing disruptions on the Red Sea continue to absorb capacity, with no clear resolution in sight. In addition, labor disputes on Canadian railroads and at U.S. East Coast terminals have led to delayed container turn times. This means…
Freight forwarders predict tighter space and higher freight rates
Chinese e-commerce sellers Temu and Shein are disrupting the air cargo market. Cheap clothing and home goods bound for the United States and Europe are gobbling up space on planes, raising concerns about an eventual capacity crunch. Also Read: The Essential Guide to Freight Forwarding in the United States While China has been the world's low-cost manufacturing powerhouse for some time, Shein and Temu are approaching previously unimaginable levels. Shein currently sells to more than 150 countries, while Temu has a presence in 40 countries and is growing. Both companies have an on-demand business model, where orders are placed with suppliers and delivered within a few days. Real-time demand data enables timely replenishment as needed and limits the need for storage and inventory risk. Competition for air cargo space is intensifying in southern China, home to the country’s manufacturing heartland. In June, air cargo prices rose 40% compared to 2023, a rare occurrence in the summer. It is estimated that…
Rising freight rates drive global container shipping profits soar
The global container shipping industry posted a sharp rise in profits in the second quarter, with revenues exceeding $10 billion, helped by record cargo volumes and rising freight rates. The growth came after disruptions to Red Sea shipping, a recent analysis showed. Also read: CH Robinson: How shippers can prepare for potential ILA strikes amid growing disruption in North American shipping landscape Net revenues at major container shipping companies, including Denmark's AP Moller-Maersk A/S and China's COSCO Shipping Holdings Co., nearly doubled compared with the first quarter of this year. These profits even exceeded the $8.88 billion in the same period of 2023, as highlighted in a report published on Saturday by industry expert John McCown. McCown expects profits to continue to rise this quarter given the strong performance of international trade. The container shipping industry, which transports 80% of the world's goods, experienced a boom during the pandemic due to strong consumer demand and supply chain disruptions. However, the…
U.S. importers brace for higher freight rates amid strike threat
An impending union strike at ports along the U.S. East and Gulf Coast threatens to increase freight rates and cause massive disruptions in ocean container traffic, trapping U.S. importers in a vicious cycle. See also: East Coast and Gulf Coast ports face strike threats as ILO suspends labor talks The International Longshoremen’s Association (ILA) recently announced the suspension of labor contract negotiations with the United States Maritime Union (USMX). The current agreement will expire on September 30, sparking concerns about a strike. “Shippers are already bringing forward imports ahead of the traditional third-quarter peak season due to supply chain concerns over the Red Sea conflict,” commented Peter Sand, principal analyst at Xeneta. “They are likely to accelerate these efforts, further complicating the situation, as the risk of disruptions at East and Gulf Coast ports increases.” Increased frontloading of imports has led to severe congestion at ports in Asia and Europe, causing spot rates for ocean containers to rise by more…
Robots and humans work together to simplify trailer unloading
It takes a lot of time to get a package from the manufacturer to the warehouse and then to your door. Logistics is full of repetitive and time-consuming tasks, such as unloading a trailer full of boxes, so it's an ideal place to use robots. Also read: 6 innovative technologies to maximize trailer space utilization Robots that unload trailers aren’t yet common, but several companies have developed models over the past few years. In most cases, they fully automate loading and unloading, without the need for human intervention. Anyware Robotics’ new solution changes that, working with humans rather than replacing them. That’s good news for everyone involved. How robots help humans unload boxes faster It’s easy to understand why logistics companies would want to automate trailer unloading. More than 21 billion packages In 2023 alone, that number has surpassed 10 million. Moving all those boxes in and out of trucks takes a lot of time, and anyone who has ever…
How AI and Automation Will Impact the Future of Freight and Transportation
Artificial intelligence and automation are rapidly changing the way the freight and logistics industry operates, improving efficiency and financial outcomes across all operations. Also read: Optimizing warehouse automation: Understanding key considerations Policymakers must explore these options to stay ahead of an ever-changing industry and ongoing technological advances. Join Co-Founder and CEO Rick LaGore as we discuss how AI and automation will impact the future of freight and logistics, and how industry leaders can prepare. InTek Freight & Logistics: Q: With technology advancing so rapidly, where will we see AI and automation being incorporated into the freight sector? A: The integration of AI is well underway, with its applications already evident in trucking, freight management, and warehouse automation. We are seeing the integration of AI in a variety of ways, from self-driving trucking to route planning optimization, forecasting demand, and transportation management systems. Leveraging data, AI can be applied to freight management to improve Transportation Management System (TMS) This enables customers…
As freight rates soar, dock workers get bigger pay raises
Earlier this week, 159 trade associations representing key supply chain stakeholders sent a letter to the Biden administration and relevant congressional committees, calling on the U.S. government to intervene in the stalled labor contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX). On June 10, the International Longshoremen’s Association issued a press release announcing that it refused to continue negotiations due to an outstanding dispute with a terminal operator at a port on the Gulf Coast. The International Longshoremen’s Association has expressed its willingness to call for a coast-to-coast strike if a new contract agreement is not reached before the expiration of the current contract, which covers approximately 45,000 longshoremen at ports on the East and Gulf Coasts of the United States. The current contract expires on September 30, 2024. In the letter, the industry associations urged the Biden administration to "immediately work with both parties to resume contract negotiations to ensure that port…
BMW recalls 291,000 X3 SUVs over freight rail issues
There was an issue with the interior cargo rail attachment that required dealer installation of new bolts. July 24, 2024 — BMW is recalling more than 291,000 X3 SUVs because of a problem with the attachment of the cargo rails inside the vehicles, which could be damaged in a rear-end collision and cause the cargo rails to detach. The recall includes BMW X3 sDrive30i, X3 xDrive30i, X3 M40i and X3 M vehicles from model years 2018 to 2023. "This safety recall involves the connection between the rear cargo rails and the vehicle body. In a severe rear-end collision, the connection between the rear cargo rails and the vehicle body could become damaged." - BMW BMW learned of the issue in August 2022, when lawyers for 2022 BMW X3 owners contacted the automaker, meaning BMW had no access to the incident. More than a year later, BMW received the lawsuit and finally inspected the X3 in March 2024. Engineers decided to…
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