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Transportation TIP List: Week of October 11th, 2015

Posted - October 14, 2015

Transportation TIP List: Week of October 11th, 2015

The central thread of this week’s transportation TIP list is a big one: expansion. With developments such as the Pacific Trade Deal, intermodal expansion in Texas and the exodus of manufacturers out of China, many in the industry are expecting large gains from a number of new avenues. Check out our sizable list below to see what’s trending!

  • Logistics Companies Expect Business Gains From Pacific Trade Deal: From small freight brokers to global logistics giants, supply chain providers are gearing up for a surge in business they believe the historic agreement will bring to Pacific trade. The sweeping deal, taking in countries that make up 40% of the global economy and a quarter of global trade, would reduce tariffs on a large range of goods that move between the countries.
  • UP Expands Texas Intermodal Terminal to Handle Rising Cross-border Traffic: Booming business at Union Pacific Railroad’s intermodal ramp in North Laredo, Texas is spurring a $90 million expansion at the facility tapping U.S.–Mexico cross-border trade. The first phase of the project, slated for completion in 2016, includes the acquisition of approximately 37 acres, the opening of a new entrance, and installation of an automated gate system and the construction of new buildings on the site.
  • Container Ship Operators Face ‘Overcapacity Crisis,’ Report Says: Overcapacity from bigger container ships will lead to several years of financial losses for container shipping lines, Drewry Shipping Consultants Ltd. said in a report released Thursday. Drewry cut its forecast for the industry’s growth this year to 2.2% from twice that in an earlier projection, while fleet capacity is expected to grow 7.7%.
  • Why Are So Many Oil Trains Crashing? Track Problems May Be to Blame: The February 2014 crash fits into an alarming pattern across North America that helps explain the significant rise of derailments involving oil-hauling trains over the last three years, even as railroads are investing billions of dollars in improving the safety of their networks.
  • Manufacturers Step Up Search for Low Cost Alternative to China: The exodus of factories moving out of China in search of lower-cost options in southeast and central Asia is accelerating, as manufacturers face increased pressure to reduce unit costs. Few industries have been spared amid the search for cheaper manufacturing alternatives, with rising Chinese labor rates cited as a major concern affecting industries as diverse as apparel and high-technology.
  • Use Supply Chain Modeling to Mitigate Port Shutdowns and Other Risks: Recent massive strikes among dockworkers on the California coast brought the reality of supply chain continuity planning to the forefront once again for global businesses. The Los Angeles and Long Beach ports handle nearly half of the nation’s cargo, and are the main gateway for imports from Asia, including automobiles, furniture, clothing, electronic products, and crude oil.

 Were there any opportunities for expansion on your transportation TIP List this week?