Tag Archive for: domestic container volume

What Is Our Shipped Cargo Worth to America?

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If you recall, the 8-day strike at the Port of Long Beach in December 2012 disrupted the flow of containers inland right in the middle of the holiday season. For many of us in the intermodal freight industry, the unwarranted strike had a tremendous knock-down effect that impacted many cargo and freight operations all across the United States.  

According to the NY Times article, some 600 clerical workers were responsible for $650 million in idled trade each day of the strike. Because of the clerical worker’s demands, 10 of the 14 shipping container terminals at the two ports were closed down, and many union longshoremen dared not to cross the picket lines.  

This action ended up costing our country’s economy a lot of money, and disrupting the flow of goods across our nation’s interstates. Now we seem to be heading toward our version of a ‘fiscal cargo cliff’ on the East Coast that looks to affect our business in all markets.   

According to this week’s Journal of Commerce, contract talks about work rules and staffing between the International Longshoremen’s Association and the New York Shipping Association have broken down. The two sides were hoping to come to an agreement on these matters before the Feb. 6 deadline date for a new contract with the ILA.  

The talks broke down to to a call for ‘revolutionary changes’ in work practices sought by the NYSA. For more than two years, according to the article, they planned to use the current negotiations to seek changes in the port’s work rules and practices, some of which predate containerization.  

The effect of a strike cannot be understated. Our Midwest trucking firm Calhoun Truck Lines is already hearing from clients we currently work with that they are already making contingency plans or are making plans to cancel the loading of containers for export via NY/NJ ports from Detroit to Omaha. These cancellations will have a massive impact on trucking companies hauling containers throughout the country and more importantly, on the livelihoods of the drivers that haul the freight.  

We ask our readers to get in touch with their state representatives or Congressional leaders to step up and get involved in these negotiations. We cannot let these discussions negatively impact the still fragile and slightly growing U.S. economy spread across the country. We need your support.

What’s Next for the Trucking Industry and Intermodal Transportation?

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The 2012 presidential election is history. The voters have affirmed a second term for the incumbent president. The congressional makeup of the House (Republican majority) and the Senate (Democratic majority) remain mostly the same and American still faces great challenges on all fronts to its prosperity and its future.  

However, there are some encouraging signs for our trucking industry. Third-quarter results for domestic intermodal container volume were released during election week. The Intermodal Association of North America reported a 11.3 percent increase in domestic containers, which were chiefly responsible for the gains in intermodal. Volumes were higher in the Northeast and Midwest intermodal trucking industry, with growth in numbers of up to nearly 15 percent higher.   Midwest trucking industry Calhoun truck lines

While reports of strong domestic container growth is welcome, weak port volume was the largest overall cause of modest international intermodal volume increases, according to the IANA. An anticipated rebound in imports should help to “…deliver higher levels of overall intermodal performance in the coming months,” the IANA reports.   

At last month’s American Trucking Association’s conference, ATA President Bill Graves said that intermodal transportation industry can be stimulated by job growth and more jobs, but the U.S. government has to get its act together to bolster a weak economy. At Calhoun Truck Lines, we are hopeful that the economy will continue to grow, container volumes will rise and we will be able to move more freight from our five Midwest trucking facilities.  

Each of Calhoun Truck Lines’ operational facilities is fully equipped to handle your intermodal trucking needs. The company is dedicated to delivering a level of service that consistently meets our customers’ expectations. Our responsibility continues with providing a professional working environment for our employees and maintaining a safety conscious truck fleet to share the roads with fellow motorists.  

With the help of our elected officials, sound transportation initiatives can be developed. For instance, Midwestern states’ governors brought forth regional recommendations for the federal transportation bill signed into law in July 2012. By working along with these guidelines for states in the country’s midwest, we can try to use transportation to help propel the Midwest’s energy, people and products.

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