Commerce Express Weekly Road Map:
July 18th, 2023
Keeping you informed on the latest news/insights in our industry.
Commerce Express Blog
Last Thursday, everyone in logistics let out a sigh deep from the delves of panic. A tentative agreement on a four-year labor contract was finally reached on Canada’s West Coast.
The feat marks an end to a protracted period of uncertainty for West Coast ports—U.S. and Canadian alike.
Trucking Update
Repairing Chassis in Chicago Has Caused Some Short-Term Shortages
In recent weeks there’s been an insufficient supply of chassis in Chicago, from major providers DCLI and TRAC Intermodal, due to the large amount of repairs and refurbishing to equipment that saw significant usage during 2021 and 2022.
As the Journal of Commerce reports, DCLI and TRAC Intermodal say this shortage should be resolved in a week or two.
The biggest reason for this shortage is the lack of mechanics right now to fix all the chassis that needs to be fixed.
“This is not a fleet issue. This is all about having enough mechanics to get those chassis back in available condition so that the drayage providers can use them. I truly believe by middle of next week, worst case the week after, the situation in Chicago will be resolved,” Val Noel, COO of TRAC Intermodal said last Wednesday regarding this chassis shortage.
You can read more about this temporary chassis shortage, here.
Water Levels on Midwest Rivers’ Fall For a Consecutive Year
For a second straight year, water levels throughout the Mississippi and Ohio rivers are falling. What does this mean for shipping?
The Mississippi and Ohio rivers and their surrounding creeks are major passages for U.S. freight, especially regarding moving coal, oil, natural gas, chemicals and commodities.
According to Transport Topics, in Cairo, Illinois – where the Ohio joins the Mississippi River – water levels have dropped more than 6 feet in the last week. Current forecasts predict it to fall more than 4 feet further by the end of July. This would push the Ohio River into a “low stage”, which means barges can run aground and shipping lanes are forced to narrow.
Lower-than-normal rains throughout the Midwest and in parts of Eastern U.S., are the reason for these potential low depths.
Regarding the impact on shipping – when water levels fall, it jeopardizes shipping on the waterways and can cause transportation costs to increase.
Traffic continues on the river but could slow down, depending on how much further the water levels fall.
Class 8 Sales in June Rise Year-Over-Year
Class 8 retail sales for the month of June totaled 24,085 units, down slightly at 0.1 percent from May, but up from the 22,358 units sold in June of last year, per FleetOwner.
Additionally, for the first half of this year, Class 8 sales were up 21 percent to 135,802 from 112,255 in the same period last year.
Did You Know: Flooding in the U.S. Northeast Brings Billions in Damages
Record levels of rain significantly impacted parts of the Northeast, especially New Jersey through Vermont, causing billions in damage.
These storms caused many in Vermont to evacuate their homes and closed down roads throughout New York and New England.
Impact was felt on the rail side as well, with rail lines having to be halted.
Rail Update
Norfolk Southern Releases Annual ESG Report
Norfolk Southern’s annual Environmental, Social, Governance report highlights their long-term strategy to balance service productivity and growth, a variety of initiatives to help improve rail safety, and their ongoing efforts regarding the train derailment in East Palestine, Ohio.
NS saw a reduction in greenhouse gas emissions intensity, partnered with union leaders which provides paid sick leave benefits to NS’s entire craft workforce, and spent nearly $1.9 billion towards safe and efficient operations, modernize technology, and support economic growth in communities, per AJOT.
Read the ESG report, here.
Weekly Rail Traffic for the Week Ending July 8th, 2023
- Total U.S. weekly rail traffic was 407,843 carloads and intermodal units – which is down a little over 5 percent compared to the same time last year.
- U.S. weekly intermodal volume was 210,757 containers and trainers – down 7.6 percent compared to last year, per data from the AAR.
- Metallic ores and metals, non-metallic minerals, and petroleum and petroleum products all posted increases. While grain, coal, and forest products all posted decreases compared to the same time last year.
- Total U.S. traffic for the first 27 weeks of this year was 12,365,173 carloads and intermodal units – which is a 5.3 percent decrease from the El Niño.
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