Commerce Express Weekly Road Map: February 1st, 2022
Keeping you informed on the latest news/insights in our industry.
Commerce Express Blog
Back in 2020, the Federal Motor Carrier Safety Administration (FMCSA), an agency under the U.S. DOT, proposed a pilot program that would allow “18 to 20-year-old drivers to operate in interstate commerce” and engage in driving commercial trucks. Since the initial proposal, the FMCSA has encouraged the public to wade in and share their opinions
Trucking Update
- The U.S. DOT’s National Roadway Safety Strategy is tasking the FMCSA and five other agencies involved with roadway safety to work towards a goal of zero fatalities and serious injuries, according to Freightwaves. Within this, the department plans on focusing five main objectives: safer people, safer roads, safer vehicles, safer speeds, and post-crash care.
- The cost of moving goods has increased, yet the U.S. truck shipment totals have slowed down in the fourth quarter, reported Freightwaves. Fourth quarter freight shipments in 2021 were down 5.1%, compared to fourth quarter shipments in 2020; some reasons for this were the lack of available drivers, trucks and trailers. Thus, increasing the costs for shippers, which made it more difficult for carriers to haul freight. In the U.S., the Northeast experienced shipments in the fourth quarter to be down 1.2% compared to 2020; the Southeast experienced shipments in the fourth quarter to be down 4.7% compared to 2020; the Southwest experienced shipments in the fourth quarter to be up 2.2% compared to 2020, reported Freightwaves.
- Major snowstorm headed towards the Midwest this week, after the Northeast got hit hard this past weekend with heavy snow and blizzard conditions. According to Freightwaves, the storm is projected to head into the southern Plains later on Tuesday, then escalate throughout the Midwest and Great Lakes on Wednesday and Thursday. Snow totals around 6-12 inches are forecasted in some areas, while some areas are expected to see more ice than snow – this is all dependent on the exact route of the storm. Parts of Oklahoma, Missouri, Kansas, as well as the majority of Illinois, Indiana and Ohio are expected to get hit, reported Freightwaves.
- Major interstates of concern, according to Freightwaves:
- Interstate 35 from Wichita, Kansas, to Austin, Texas
- Interstate 40 from Little Rock, Arkansas, to Albuquerque, New Mexico
- Interstate 44 from Oklahoma City to St. Louis
- Interstate 55 from Memphis to Chicago
- Interstate 64 from St. Louis to Huntington, West Virginia
- Interstate 70 from Denver to Columbus, Ohio
- Interstate 90 from Chicago to Syracuse, New York
- Major interstates of concern, according to Freightwaves:
Industry FAQ's
Are U.S. Consumers expected to spend more money on goods this year?
U.S. consumers are expected to spend more on daily and essential living expenses than on larger non-essential goods such as vacations.
What services does Commerce Express provide?
Variety of intermodal logistics solutions, freight management services, cross-border shipping, tracking technology, cargo insurance, and more!
Rail Update
- Two unions continue to fight against BNSF attendance program, as a judge issued a temporary restraining order that “a strike would exacerbate our current supply-chain crisis – harming the public at large, not just BNSF,” reported Freightwaves . The two unions (BLET and SMART-TD) are abiding to the temporary restraining order but continue to fight and use as much legal action as possible, to stop the implementation of the proposed policy from BNSF. As of now, the attendance program would begin Tuesday. You can read more about the proposed policy here.
- Kansas City Southern is hopeful for growth opportunities when it comes to shipping imported refined products into Mexico in the long term. According to Freightwaves, Mexican refined products production is only able to meet a third of overall demand, so the country has to rely on imports. However, imports have predominantly shifted from rail to truck due to the rail terminal shutdown.
- In addition, revenue for KCS rose 7.8% in the fourth quarter of 2021, Freightwaves reported.
- In 2022, Norfolk Southern plans to outline and implement the next stage of its precision scheduled railroading program. According to Freightwaves, this includes creating longer trains, and continuing productivity initiatives and finding growth opportunities. Norfolk Southern is optimistic that the second half of 2022 for volume growth will be significant, especially with the increase of manufacturing and consumer activity drive growth.
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