Commerce Express Weekly Road Map:
January 23rd, 2024
Keeping you informed on the latest news/insights in our industry.
Trucking —
- Winter weather can cause temporary disruptions in the supply chain. Properly securing loads can take additional time as truckers will need to wait for dunnage or tarps to thaw.
- Some regions in the U.S. have experienced below freezing temps (and wind chill advisories), which can create additionally maintenance to keep batteries running and engines warm, slow travel (due to icy road conditions), etc.
- Port Houston shut down last week (15th-16th) due to poor weather conditions.
- As of January 22nd, the national average price of diesel is $3.838.
- Seeing a 2.5 cent decrease, compared to the week prior.
Rail —
- Charleston ports continue to invest in rail to help with growth in the Southeast.
- CSX railroad was named the intermodal service “top performer” for the second year in a row.
- The railroad was voted on by shippers and intermodal marketing companies that took part in a survey that was conducted by the Journal of Commerce. The survey took place between September 1st and October 31st.
- Rail capacity continue to be plentiful and rail transits are continuing to be at five-year averages, some even higher.
Cross-border —
Canada –
- Transport Canada is proposing a change to the Transportation of Dangerous goods regulation (TDGR).
- Still under review but could create cost increases for companies and how they handle DG imports, new equipment investments or training employees for regulation compliance.
- Some amendments in the proposal include: enhancing buffer car requirements, strengthening emergency response assistance plan requirements, aligning regulations with other federal rules on transportation of DGs, and more.
Head of the FMCSA is Resigning, Set to Leave on January 26th
Robin Hutcheson, the head of the Federal Motor Carrier Safety Administration, is set to resign from her position on January 26th . Sue Lawless, FMCSA Executive Director and Chief Safety Officer, will serve in the interim.
Hutcheson was confirmed by the Senate back on September 22nd, 2022, her main goal was to stress the importance of roadway safety as administrator.
Industry executives react to Hutchesons departure:
“We applaud her communication, transparency, and commitment to ATA and our members, and we wish her well in her future endeavors,” Chris Spear, American Trucking Associations President and CEO said on Hutchesons departure.
“We thank Administrator Hutcheson for her service to our nation and her efforts to keep America’s roadways safe for truckers and all road users,” said Todd Spencer, President at Owner-Operators Independent Drivers Association.
Increased Fraud in Trucking Becoming a Bigger Issue TIA Tells Congress
The Transportation Intermediaries Association has stated that increased fraud in trucking has become a several hundred million dollar problem and it’s not being addressed correctly.
“There’s a surge of malicious actors engaging in illegal activity, registering with FMCSA as carriers and perpetrating fraud, theft and holding freight hostage in situations without any legal consequences,” Jeffrey Tucker said while testifying before Congress last Wednesday. He was speaking on behalf of the TIA at this hearing.
In Tucker’s passionate testimony to Congress, he stated he was “genuinely concerned with the [FMCSA} and their willingness to become involved in commercial aspects of the transportation system.” It’s clear Tucker would like the FMCSA to do more to decrease the increase in fraud in the trucking realm.
Take a more in depth look at this topic, here.
Commerce Blog
Some terms appear similar, if not synonymous, with one another. Take “co-brokering” and “double brokering”. At first glance, one may assume they are used interchangeably, however the reality is quite the opposite. One is a widely used, potentially advantageous, practice, while the other is a complete risk marred with fraudulence.
The following is a look at co-brokering versus double brokering as supply chain practices.
Status Check on the Railway Safety Act
The Railway Safety Act, which has been at a standstill since May 2023, was put together following the East Palestine in Ohio derailment. When the bill was first introduced it stated it would require two-person crews, wayside detectors, training for first responders, and increased rules for hazardous materials – all in an effort to try and prevent similar derailments.
Since the introduction of the bill, more changes have been made, some that include doubling the interval of manual locomotive inspections, a crew-size mandate, etc., Trains.com reports.
This has led some industry stakeholders to wonder why the need for all these extra “unrelated” additions in the bill, which were not in the first introduced bill. And currently, it looks like it will be a bit before this bill gets set for a vote in the Senate.
Total Weekly Rail Traffic for the Week Ending January 13th, 2024
- Total U.S. weekly rail traffic was 457,453 carloads and intermodal units – which was down 4.1 percent compared to last year at this time – according to AAR data.
- U.S. weekly intermodal volume was 244,176 containers and trailers – which saw a 1.9 percent increase from this same period last year.
- Chemicals, petroleum and petroleum products, and forest products all saw increases. While coal, grain, and non-metallic minerals all saw decreases.
- For the first two weeks of this year, rail volume in North America was at 1,222,708 carloads and intermodal units – a decrease of 1.5 percent compared to last year.
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