Commerce Express Weekly Road Map: September 13th, 2022
Keeping you informed on the latest news/insights in our industry.
Commerce Express Blog
Back in March, the Surface Transportation Board (STB), a U.S. federal board that presides over transportation disputes, held proceedings that unveiled Amtrak’s desire to require prominent freight railroad companies Norfolk Southern and CSX to use their tracks between Mobile, AL and New Orleans, LA for its passenger rail service.
Trucking Update
- This week, from September 11th through the 17th, is National Truck Driver Appreciation Week! There are over 3.6 million truck drivers in the United States and are an important part of the economy. Which we have especially seen these last two years throughout the pandemic delivering goods safely, securely, on time, as well as keeping the highways safe. Sometimes, it may seem like a thankless job, so, if you see a truck driver, maybe take the time to say a friendly thank you for all that they do.
- Supply chain constraints have made retailers increase their amount of orders, in an attempt to avoid delays… however, consumer demand has been slowing down, which is making warehouses full, and operators are still stacking inventory, while waiting for it to ease. So, what does this all mean? Well for one, it has logistics companies desperately trying to search for warehousing solutions, with some even pushing their warehouses to 120% of their capacity, Transport Topics reports.
- It seems as if the trucking market is continuing to soften, as truckload volumes for contract freight rose three percent during the week leading up to Labor Day, load rejections remained at six percent, which is near annual lows, Freightwaves reports. What does this mean? Typically, the last couple of years have shown that after the Labor Day holiday, the beginning of an extended period of elevated activity in the truckload market occurs, essentially an extended peak season, Freightwaves says.
- For a second straight week, diesel has declined by 5.1 cents, to $5.033 Transport Topics reports. Still, data shows that on average a gallon of diesel still costs $1.661 more than it did at this time last year.
Rail Update
- In light of a potential strike on September 16th, Class I railroads are suspending shipments of security-sensitive and hazardous materials, starting as early as September 12th, Freightwaves reported. This can include chlorine used to purify drinking water and chemicals used in fertilizer, amongst others. However, the heads of two rail unions said these measures from the railroads are an attempt to get shippers to pressure Congress to get involved and block a strike, a report from Freightwaves details.
- The railroads say these are proactive measures taken and are not an indication whether the strikes will occur or not. Additionally, nine out of the twelve rail unions involved have reached agreements. However, those three remaining unions have not committed to not strike. We will continue to keep you informed and updated throughout this week and further regarding this topic.
- The Massachusetts Department of Transportation’s Rail and Transit Division is set to deliver $3 million to seven industrial rail access projects, in an effort to help reduce truck traffic in the state – Railway Age reports.
- For the week ending on September 3rd, 2022, total U.S. weekly rail traffic was 513,087 carloads and intermodal units – which data from the Association of American Railroads shows, is up 3.7 percent compared to the same time last year. To break that down, 241,431 were carloads (up 5.7 percent), while 271,656 were containers and trailers (up 2.1 percent), compared to the same time last year. Coal, grain and non-metallic mineral commodities all saw increases compared to the same time last year. Miscellaneous, metallic ores and metals, and petroleum and petroleum product commodities all posted decreases compared to the same time last year, data shows.
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