MARKET BRIEF | June 2022
A BRIEF look at what’s happening in the logistics and shipping industry.
AUTOMATION AT CENTER OF PORT LABOR TALKS
Contract talks are ongoing between dock workers and West Coast ports. Their current contract expires at the end of June. Negotiations have been going on for several weeks, but were halted for 12 days in May. One of the big issues with dockworkers is automation. As with many other industries, automation is seen as a way to increase efficiency. However, there is opposition from the union, since automation also means the elimination of jobs. There is also a concern that automation can open the door to the risk of hacking, which has been experienced by ports who have adopted it. More to come, as this situation progresses.
RAIL FREIGHT FACTS & FIGURES
The U.S. rail system plays a major role in delivering goods across the country. With air freight and ocean freight garnering most of the attention right now, you are probably not aware that:
DIESEL PRICES AFFECTING SMALL CARRIERS
The cost of diesel fuel, as reported by the U.S. Energy Information Administration, is at an all-time high. Small carriers continue to be squeezed by the resulting higher operating costs, and there are an increasing number of these owner-operators giving up their authorities, and signing on with large fleets. Large fleets will either cover fuel expense entirely, or have national fuel discount programs that these owner-operators can benefit from.
CASE STUDY: THE IMPORTANCE OF CRITICAL A.O.G. SERVICES
With the various natural disasters that have occurred all over the world, shippers and logistics providers need to be prepared to transport essential parts and equipment to emergency responders. Take, for example, the Boeing 747 SuperTanker known as the Spirit of John Muir … READ MORE
Contract talks are ongoing between dock workers and West Coast ports. Their current contract expires at the end of June. Negotiations have been going on for several weeks, but were halted for 12 days in May. One of the big issues with dockworkers is automation. As with many other industries, automation is seen as a way to increase efficiency. However, there is opposition from the union, since automation also means the elimination of jobs. There is also a concern that automation can open the door to the risk of hacking, which has been experienced by ports who have adopted it. More to come, as this situation progresses.
RAIL FREIGHT FACTS & FIGURES
The U.S. rail system plays a major role in delivering goods across the country. With air freight and ocean freight garnering most of the attention right now, you are probably not aware that:
- Rail cars have a far greater capacity than truck trailers.
- Tens of millions of carloads of coal, chemicals, construction material, food products, grain, motor vehicles and auto parts, home goods, and clothing are transported every year.
- Trains are the most environmentally friendly way to move freight by land.
- Locomotives can process a billion data points per second.
- Drones are now enlisted to help run the railroad.
- Massive rocket boosters can ship by rail.
- More than 600 railroads operate in the United States.
- Freight railroads haul about 1.7 billion tons each year.
DIESEL PRICES AFFECTING SMALL CARRIERS
The cost of diesel fuel, as reported by the U.S. Energy Information Administration, is at an all-time high. Small carriers continue to be squeezed by the resulting higher operating costs, and there are an increasing number of these owner-operators giving up their authorities, and signing on with large fleets. Large fleets will either cover fuel expense entirely, or have national fuel discount programs that these owner-operators can benefit from.
CASE STUDY: THE IMPORTANCE OF CRITICAL A.O.G. SERVICES
With the various natural disasters that have occurred all over the world, shippers and logistics providers need to be prepared to transport essential parts and equipment to emergency responders. Take, for example, the Boeing 747 SuperTanker known as the Spirit of John Muir … READ MORE
For more information on Aeronet Worldwide, visit Aeronet.com.
