Commerce Express Weekly Road Map:
February 27th, 2024
Keeping you informed on the latest news/insights in our industry.
Trucking –
- As of February 26th, the national average price of diesel is $4.08.
- Seeing a 5.1 cent decrease from the week prior.
- FMC releases their final rulemaking on detention and demurrage billing practices.
Rail –
- Union Pacific has provided their customers with a rail option to the U.S. West Coast and the Southwest, with their expansion of their intermodal terminal in Phoenix, AZ.
- Port of Savannah moved 47,132 containers in January – a 27 percent increase.
FMCSA and PHMSA Issue Safety Advisory Over “Nurse Tanks”
The Federal Motor Carrier Safety Administration and the Pipeline and Hazardous Materials Safety Administration issued a safety advisory over the possibility of ‘catastrophic failure’ of certain hazardous materials packages known as “nurse tanks.”
Their concern is over the stability of “nurse tanks”, stemming from an incident in August 2023 at a farm co-op lot, when a failure of a nurse tank “caused the tank shell to ‘rocket’ over 300 feet from its original location,” according to the agencies. No injuries were reported.
These agencies ‘strongly recommend’ that “owners of American Welding and Tank (AWT) nurse tanks manufactured between January 1st, 2007, and December 31st, 2011, that are exempted from periodic visual inspection and testing requirements as described above, conduct voluntary periodic visual inspection.. thickness testing.. and pressure testing” in agreement with federal regulations.
NTSB Cites Negligence as a Reason for the 2022 Pittsburgh Bridge Collapse
In a hearing on February 21st, investigators with the National Transportation Safety Board said the Fern Hollow Bridge should have been “shut down years before widespread corrosion and section loss caused a collapse in 2022,” Transport Topics states.
Load rating was also a factor and should have been reduced, as it was far too high for what the bridge could safely handle.
More details are expected to come out in the NTSBs comprehensive investigation, which is expected to be fully released next month.
The NTSB also recommended changes at all levels of government to prevent future tragedies, according to Transport Topics. Some of those recommendations include: the city keeping more detailed records of repairs, working with the Pennsylvania DOT to develop a routine maintenance program, and more.
Commerce Blog
Teamsters Canada Rail Conference (TCRC), the trade union representing rail workers employed by Canada’s two Class I railroads, is warning that a labor strike could now occur after contract negotiations have halted over issues of working conditions and wage increases.
The union is currently negotiating with Canadian National (CN) and Canadian Pacific Kansas City (CPKC) to renew three collective agreements that cover nearly 9,300 employees of the railroads.
It appears discussions have taken a turn for the worst as Teamsters publicly denounced the railroads for not taking the negotiations seriously. The union claims that the alleged flippancy is essentially inviting a work stoppage.
Norfolk Southern Plans to Stop Intermodal Service from Charleston and Savannah
In mid-March, an intermodal service from Norfolk Southern will be stopped. This service involves the ports of Charleston and Savannah to destinations of Chicago, Cincinnati and Louisville.
Insignificant success is the reason for these intermodal services being eliminated.
“We’ve had a product [in Savannah and Charleston] that has not been successful… business to these cities can be served by other ports,” NS Vice President of Automotive and Intermodal, Shawn Tureman said.
Data analysis from the JOC shows just under 1,000 import containers were moved from Charleston and Savannah to Chicago and Cincinnati last year. Additionally, around 2,500-3,000 import containers went from Charleston and Savannah to Louisville last year.
Total Weekly Rail Traffic for the Week Ending February 17th, 2024
- U.S. weekly traffic was 474,226 carloads and intermodal units – up 3.7 percent from the same period last year, per AAR data.
- U.S. weekly intermodal volume was 253,697 containers and trailers – up 7.9 percent.
- Miscellaneous carloads, chemicals, and motor vehicles and parts all saw increases. While coal, non-metallic minerals, and petroleum and petroleum products all saw decreases.
- Rail volume in North American for the first seven weeks of this year was 4,443,897 carloads and intermodal units – down 0.2 percent.
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