Heavy Duty Trucking, May 2018

HDT MAY 2018 18 WWW TRUCKINGINFO COM Hotline TRUCKINGS MOST RESPECTED BUSINESS REPORT Railroads struggling to capitalize on truckings capacity crunch With truck utilization near 100 and significant increases in trucking rates rail carriers should be in a position to increase carloads but so far that is not occurring Carloads for the first two and half months of 2018 were down by 08 according to the Association of American Railroads Shippers have said that rail service issues are leading them to cut back planned volume expansions by rail because they need to have a reliable supply chain partner The lack of a reliable service product for rail carload is causing shippers to shift business back to truck We cant backtrack now on a trading relationship to which we owe a great deal of our success not with other countries in Asia and Europe threatening to pass us by David Abney chairman and CEO of UPS writing in UPS Longitudes about the need to modernize NAFTA SPOT FREIGHT INDEX Information provided by DAT Solutions 200300400500600700800DECNOVOCTSEPAUGJULJUNMAYAPRMARFEBJAN DEC 2014 2015 2016 2017 2018 INDEX YEAR 2000 100 Flatbeds drive record spot volume Spot truckload freight availability rebounded in March to set a new 20 year record for the DAT North American Freight Index The 38 increase in volume year over year was due largely to extraordinary demand for flatbed equipment to move industrial cargo for energy and construction Flatbed freight rates also set a record lntermodal volume growth has far outpaced carload volumes to start 2018 increasing 56 in the first 11 weeks of this year better than carloads decline but not something that should have caused a service meltdown Much of the intermodal growth has come on the Canadian carriers as they enticed traffic to move through British Columbia But a rough winter further snarled service and led to significant delays into Midwestern hubs lntermodal shippers are service sensitive so the delays are likely to create some agitation and additional truck demand if there are trucks available to handle it Port expansions should help rail carriers expand their reach into eastern intermodal destinations Tight truck capacity is also increasing the opportunity for rail carriers to have an opening into traditionally closed off short haul lanes However this is dependent on rail carriers providing reliable and consistent service Railroads have talked for years of being able to handle shippers cargo when trucking capacity becomes tight as regulatory mandates kick in But it increasingly appears that railroads could miss this opportunity to add volumes to their lines despite the headaches their competitors are feeling Jonathan Starks FTR For more information visit www ftrintel com HDT or call Eric Starks at 888 988 1699 Tonnage Modal ShareTonmiles Modal ShareTotal Truck74 Total Truck48 Rail10 Rail25 Pipe12 Pipe19 Water4 Water8 Air1 Air2 Trucking Activity Dominates U S Freight Transportation SOURCE FTR COPYRIGHT 2018 DAT Spot Freight Index March 2018