THIS WEEK IN THE LOGISTICS INDUSTRY (21 TO 27 AUGUST, 2023)
1. STG Logistics plans to expand intermodal network in Canada
STG will use Falcon Premium service offered by UP, CN and Grupo México for cross-border movements
Chicago area-based STG Logistics, which bills itself as providing “port-to-door” services for containerized goods, plans to expand its Canadian intermodal network beyond its current offerings in Toronto and Montreal.
STG plans to enter the markets of Vancouver, British Columbia; Calgary and Edmonton, Alberta; Winnipeg, Manitoba; Moncton, New Brunswick; and Halifax, Nova Scotia.
“We are excited to continue our intermodal growth by offering our best in class service to customers with Canadian opportunities. … We feel that these new lanes enhance and strengthen our industry position,” Geoff Anderman, STG president and chief operating officer, said in a Wednesday release.
To move shipments across both the U.S. and Canadian and U.S. and Mexican borders, STG will use the Falcon Premium and Eagle Premium service offered by Union Pacific (NYSE: UNP), Canadian railway CN (NYSE: CNI) and Grupo México. Read more
2. New tech aims to address US truck parking shortage
Financial services company Finloc 2000, which specializes in freight transportation equipment, is working on a new mobile app aimed at solving the challenges of truck parking in the United States. The growth of the number of truckers on the roads over the past two decades, in addition to hours-of-service regulations, has created a struggle for drivers seeking overnight parking.. Read more
3. FedEx, UPS pull back July cargo flights amid weak volumes
The number of package flights operated by FedEx Express and UPS significantly declined month over month in July, underscoring how far the overall air cargo market has sunk since the spring of 2022 and the effect of efficiency initiatives the companies have undertaken in response to lower express volumes.
FedEx (NYSE: FDX) flew 9% fewer domestic flights last month than in June following small sequential gains the prior two months, with year-over-year flight activity down 14%, according to an analysis by investment bank Morgan Stanley. The year-over-year decline in UPS’ flight activity accelerated to 13% from 10% in June. UPS (NYSE: UPS) reduced July flights by 14% from June. Flight activity in May and June, by comparison, was relatively stable. Read more
Shipping ‘traffic jam’ at Panama Canal: Why it’s not a crisis (yet)
The widespread headlines on Panama’s drought and the traffic jam of ships at the canal sound ominous. Authorities at the Panama Canal Authority (ACP) have called this year’s water shortages an “unprecedented challenge.”
Media coverage on the canal begets more coverage. Shipping journalists’ inboxes are now filling up with public-relations pitches offering clients’ expert opinions on “the historic drought set to disrupt global supply chains,” “how the Panama Canal gridlock is impacting the global supply chain,” “how the Panama Canal jam is putting cargo at risk,” and “looming potential shortages as the Panama Canal restrictions impact holiday stocks.”
The reality is that Panama Canal constraints have yet to affect American consumers.
The data doesn’t point to a crisis as of now, nor do comments from shipping executives and analysts. And going forward, the inherent flexibility of the supply chain allows for alternatives should Panama’s drought persist. Read more
FedEx drops ‘peak’ from surcharge vocabulary
FedEx Corp. has made it official: It is dropping the word peak from its description of delivery surcharges and replacing it with the word demand.
Effective Sept. 4, “any reference to ‘peak’ in a surcharge name will be replaced with and rebranded as “demand,” the company (NYSE: FDX) said in a notice on its website. The notice said that “during times of elevated volumes, high demand for capacity, and increased operating costs across our network, FedEx will implement demand surcharges. Demand surcharges are determined for each market based on regular assessments of shipment volume and capacity within our network to accommodate.” Read more
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