Tag Archive for: intermodal cargo

Transportation, Freight Crisis Looms in Midst of Overcapacity

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According to a new trucking/freight industry report, the U.S. regulatory environment for intermodal freight companies might be the largest factor in increased transportation costs.

“The State of Freight” report, written by FTR Snr. Consultant Noel Perry, looks at the upcoming capacity shifts for the trucking industry and the ramifications of proposed and ongoing government regulations.

Just a quick glance at the Rules and Regulations at the Federal Motor Carrier Safety Administration site is likely enough to make any trucking company’s executive heads spin. But in fact, it’s this sort of massive regulatory environment that is forcing trucking executives to think hard about driver hiring decisions and capacity moves in the coming 18-24 months.

Trucking-MidwestIn a quote at FTR’s site, Perry says “If federal agencies do what they say they’re going to do, by the third quarter of 2015, we will need to hire another 160,000 drivers.” If this happens, Perry suggests, it may test the patience for intermodal trucking companies and freight firms.

A capacity crisis is one of the scenarios forecast in Perry’s report. He noted that regulatory changes may bring about additional driver hiring by trucking firms. The report forecasts some extra 160,000 drivers may be needed in two years’ time. And if demand doesn’t stay strong due to regulatory issues, government shutdowns or another recession, shortages may become the net result.

The trucking industry is already operating at tight margins of hiring, with leaner staffs and appropriate levels of trucks over the past few years. This has led to a manageable level of costs. But if there’s a great influx of demand, prices will have to go up correspondingly.

Calhoun Truck Lines continues to watch the overall regulatory area for changes, and how it affects our freight business in the Midwest. As we move closer to 2014, we hopefully anticipate more growth in our business. If your business is looking to move cargo, contact one of our five Midwest locations for a customized shipping solution.

Make Way for Intermodal Transportation Growth

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As the economy starts to move again after several years of flat or stagnant growth, intermodal transportation companies are riding the momentum in increased product shipments from U.S manufacturers and service companies.   
intermodal transportation, Calhoun
According to recent figures from the Intermodal Association of North America’s Intermodal Market Trends and Statistics report, U.S. growth of container volume grew nearly 13% over 2011’s Q2. It was the second strong growth quarter in a row, just below 2012’s strong first quarter increase of 14% in container volume. International intermodal shipping volume for U.S. container imports also grew 4% in 2012’s second quarter, the best quarter in a year for international.  

This is the type of encouraging business results for our nation’s economy, especially heading into an election year cycle. From port shipments and deliveries on both East and West Coasts, to intermodal trucking companies in the Midwest, business is looking up for the U.S. logistics industry.    

The last four years in intermodal transportation have been depressing, as trucking companies faced driver shortages and high fuel costs. But 2011 showed a slight uptick in growth, which now has blossomed into the encouraging 2012 numbers seen at top. The reasons vary. Intermodal shipping offers cost savings from solid pricing, less handling costs, environmental benefits and better industry safety. Plus, the truckers have returned to the roads, and can again resume making a living from the increased shipments.  

The U.S. logistics system is a complicated one, compiled of different industry segments and businesses working in intermodal transportation. Industry participants include intermodal trucking and rail firms, ocean carriers, port authorities, logistics companies, and suppliers firms offering leasing, warehousing and other services. Collectively, these companies help move the nation’s standard shipping containers and trailers. Individually, each outfit works to provide better operations, better use of existing infrastructure, and better service to their own corporate customers.  

A key benefit of these companies working together in intermodal transportation is that they help reduce transportation costs on particular modes of transport, while also lessening congestion on sea, air and roadways. Moreover, each particular mode of transportation brings with it its own advantages.  

Intermodal trucking companies establish arrangements with railroads to benefit both by helping to secure containers, decrease costs and improving overall service efficiencies.  Studies have shown that using trains in rail transportation for shipping goods has shown to reduce highway accidents and lower its carbon footprint.  

But in some instances, there are advantages for some companies in using trucking mode of transportation. Intermodal trucking firms can be more flexible and time sensitive to good shipments in particular regions of the country. They also can utilize a smaller, more efficient fleet for smaller shipments.  

Overall, shippers can rely on U.S. intermodal transportation companies for reliability, safety and efficiency. When more companies move their freight to intermodal forms, the U.S. logistics industry will prove to be resilient in the face of ongoing competition.

Driver Safety with Calhoun Truck Lines

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In the intermodal trucking business, getting the cargo to one’s destination on time and in budget is probably the most important need for a client. On its heels, though, is the safety and focus of our truckers while delivering intermodal cargo in the Midwest.  

At Calhoun Truck Lines, we take safety of our truckers and the cargo very seriously. We work with all our drivers in the Federal Motor Safety Administration’s Compliance, Safety and Accountability (CSA) BASIC program. It’s a program designed to provide a threshold of safety for intermodal trucking companies and their drivers. It is Calhoun’s goal to go above and beyond the minimum threshold of safety and reduce driver violations.   

Below are some of the requirements we have laid out for our drivers under the different categories in the CSA BASIC program. You can be assured we are actively focused on creating policies and actions to accomplish these goals.  

Unsafe Driving

  • No cell phones or other use of electronic equipment while driving
  • Provide continuing education on managing driver speed and space
  • Test drivers for proper backing techniques
  • Provide extreme weather driving education and best practices  

Fatigued Driving

  • Hours of Service training for dispatchers and drivers
  • Audit all driver logs and maintain consistent records
  • Consult with industry experts for improved training
  • Continuing education at all quarterly safety meetings  

Driver Fitness

  • Track driver CDL expirations
  • Random drug testing
  • Mandate pre-employment drug testing
  • Monitor mandatory annual driver physicals  

Vehicle Maintenance

  • Random DOT truck inspections (in addition to the required annual inspection)
  • DVIR received daily from all drivers
  • Maintain and manage the maintenance of leased chassis
  • Mandate monthly maintenance reports from all drivers  

Cargo-Related

  • Zip-tie Policy for container securement
  • Continuous hazmat training for managers, dispatchers, and drivers
  • Continuous education on equipment inspections and cargo securement for all drivers  

Crash

  • Follow Great West Casualty’s guidelines for accident reporting
  • Equipment control education (during orientation and quarterly) for all drivers
  • Participate in the Great West Casualty “Value Driven Driving” program    

As a Midwestern leader in intermodal trucking, Calhoun Truck Lines is committed to being proactive about truck driver safety. Our company stays up to date on all communications from the Federal Motor Carrier Safety Administration. In the states in which we operate, we work directly with drivers to ensure Department of Transportation compliance and support our field operations to enhance working relationships with our truck fleet.

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