Check back here often for the lastest news and information related to the issues that affect our industry.

Shippers Dealing with Sluggish Peak Season

September 4, 2008

The third and fourth quarters are typically the busiest time of the year for those in the transportation industry, with increased demand for products by the retail industry being driven by the impending holiday seasons. 2008, though, has been a different story altogether. A sluggish economy and the resulting lack of demand by consumers have led to a decrease in freight movement. Another significant factor is the exorbitant price of fuel, which has caused many suppliers to get creative when moving their product. The high cost of jet fuel has led to greater usage of steamships, and rail movement has now become more economical than truck movement. While the volume projection for the rest of this year continues to be low for shippers, rail volumes in particular are expected to double within the next 20 to 30 years. It is important to remember that freight volume is a good economic indicator, which means that the current low volume coincides with the weak economy.

Green is the Color to Be

August 25, 2008

Pain at the pump and the continuous quest for renewable energy sources have everyone’s focus shifted towards the environment. Being “green,” or environmentally friendly, appears to be at the top of all agendas – particularly now in the transportation industry. The largest Class I railroads are all making a conscious effort to reduce their carbon footprints by cutting back air emissions and fuel consumption. Rail has been claimed to be three times more efficient than truck, and is touted to be the most energy efficient and environmentally friendly mode of transportation.

The U.S. EPA has also developed the SmartWay program that rewards 3PL’s for working exclusively with environmentally conscious truckers and carriers for employing “green” driving practices and assets. Green driving practices include the following:

• Consistent observation of average truck speed
• Aiming to reduce rapid decelerations or accelerations
• Proficient shifting procedures
• Cutting the truck engine during stops
• Using electronic driver logs instead of paper logs

These environmentally friendly practices will reduce overall fuel consumption and save money along the supply chain, while also helping to combat pollution. Green is the new color of the transportation industry.