CN to Improve Service for Shippers Through New Intermodal Agreements

(DC Velocity – Toby Gooley)

Canadian National Railway (CN), the Montreal-based railroad that has worked in recent years to improve productivity and shorten transit times, is extending that approach to its seaport partners through a series of new “service level agreements.”

In addition to establishing key performance indicators (KPIs) and measurement tools, the agreements formalize the tracking, electronic sharing, and application of the resulting data, CN said.

The aim of the service agreements is to increase coordination among the railroad, ports, terminal operators, and ocean carriers, according to Jean-Jacques Ruest, CN’s chief marketing officer. Ruest delivered the keynote address at the recent American Association or Port Authorities (AAPA) 99th Annual Convention in Halifax, N.S. Some 700 port professionals from throughout the Western Hemisphere attended the event. Read more here.

Related: Let’s hope CN’s pact with Halifax port is a harbinger of improved service

U.S. Companies Take Up Transloading to Streamline Supply Chains

(Procurement Leaders)

U.S. retailers and manufacturers are increasingly turning to transloading to optimise their supply chains, a new report reveals.

There is a substantial increase in the practice of transloading on the West Coast over direct shipping to the Midwest via intermodal rail, according to The Journal of Commerce.

The report explains that, by repacking inbound container shipments into larger domestic containers, shippers save on inland transportation costs and gain more inventory flexibility. Read more here.

Intermodal Volumes on the Rise

(Materials Management & Distribution)

Second-quarter numbers show record growth

If the second-quarter results are any indication, the intermodal freight sector is recovering nicely from the recession. According to the U.S.-based Intermodal Association of North America (IANA), overall intermodal volumes were up 17.2% compared to the second quarter of 2009.

Domestic container volumes rose 16.4% to 1,128,108 units – a new record high. This marked the 20th consecutive quarter of growth for domestic containers. At 406,080 units, trailer volumes were up five percent, but are expected to further decline later this year. Read more here.

U.S. Supreme Court Rules on Liability for Inland Portion of Intermodal Shipments

The U.S. Supreme Court has issued a ruling June 21 that reverses two Ninth Circuit Court of Appeals decisions concerning through bills of lading, which allow cargo owners to contract for transportation across oceans and to inland destinations in a single transaction.

The Supreme Court ruled 6-3 that the Carmack Amendment to the Interstate Commerce Act of 1887, which governs the liability of domestic rail carriers, does not cover damages to cargo during the inland leg of an international intermodal shipment moving under a through bill of lading issued by an ocean carrier where no domestic bill of lading was issued and the ocean carrier subcontracted for rail transportation. Instead, such shipments are covered by the Carriage of Goods by Sea Act, which regulates bills of lading issued by ocean carriers engaged in foreign trade.

The complete SCOTUS decision can be downloaded from our website.

Domestic Intermodal Primed for Growth

(Journal of Commerce Online – Bill Mongelluzzo)

Rail likely to benefit as shippers cut transportation costs, carbon footprint

Domestic intermodal rail weathered the economic recession better than most transportation modes, and the industry appears now to be on the verge of experiencing unprecedented growth. The growth in domestic intermodal will be driven by shipper requirements to reduce transportation costs, improved reliability of intermodal services by all rail carriers and corporate America’s desire to reduce its carbon footprint.

“The changes are so profound I believe we are at an inflection point,” Brian McDonald, vice president of intermodal at Union Pacific Railroad, told the Los Angeles Transportation Club.

UP is a case in point. Domestic intermodal was the only sector of UP’s 40 commodity lines to grow during last year’s recession. In fact, UP handled a record number of domestic intermodal units in 2009.

Changing customer requirements will be a primary driver of domestic intermodal growth. Traffic managers are acting under a mandate to reduce transportation costs, and substituting domestic intermodal for over-the-road trucking is the quickest way to cut costs over longer distances, McDonald said. Read more here.

Regina Takes Steps to Establish Itself as Global Transportation Hub

(Truck News)

A meeting of transportation and logistics professionals was held here (Regina) yesterday to flush out a vision of establishing the region as a global transportation hub. The Global Transportation Hub Authority (GTHA) Board of Directors held its first meeting yesterday.

"We have assembled a diverse group of men and women with impeccable credentials in transportation logistics and international trade," GTHA Chair Wayne Elhard said. "With people whose names are instantly recognized in the international business community, the Global Transportation Hub (GTH) vision will quickly become a reality." Read more here.

New Intermodal Rail Container Yard Will be Huge

(Regina LeaderPost – Veronica Rhodes)

The planned Canadian Pacific intermodal facility (IMF) could be bringing national distribution centres to Regina, the size of which the Queen City has never seen.

“This will be an area with extremely large warehouses. Think of the biggest warehouse you know and multiply by a factor of two, three or four and you get a sense of the scale of these,” Jeff Lehman, a principal with MKI, an independent consulting firm contracted to prepare a concept plan and cost analysis for the IMF, said Wednesday. “Some of these are one million square feet so it’s a type of land use that isn’t in Regina yet – a very, very large warehouse.”

Lehman explained that intermodal facilities are central to distribution networks, particularly for retailers who will send out goods to their stores across the country. The IMF is to be built west of the city and will replace the current CP yards in downtown Regina.

The estimated $93-million project has already received $27 million in funding from the federal government and will also result in the creation of an interchange at Lewvan Drive and the Trans-Canada Highway.

Mayor Pat Fiacco explained the IMF is basically an inland port, allowing retailers to be able to move product by air, road and rail. Regina is the ideal location due to its central position in the country.

“This is about the creation of not hundreds of jobs but literally thousands of jobs over the next few years. That’s not just including the construction portion of it, this is ongoing jobs,” said Fiacco.

Lehman said each warehouse could be located on roughly 50 hectares of land by the IMF, but won’t match the size of such facilities seen in Chicago and Calgary. Read the complete article.