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Is There a New US Based Parcel Service Being Born in Front of Our Eyes?

Is There a New US Based Parcel Service Being Born in Front of Our Eyes?

Posted: March 20, 2018 | Newsletter

Pitney Bowes Inc. took a big leap into the U.S. parcel shipping market by acquiring privately held Newgistics Inc., a provider of reverse and forward parcel shipping services, for about $475 million. The transaction, which has been the subject of industry rumors for several months, will merge Pitney's formidable IT capabilities with Newgistics' physical distribution network, which processes 100 million parcels a year-more than half the volume moving through the U.S. Postal Service's fast-growing "Parcel Select" product, where large parcel consolidations managed by firms like Newgistics are inducted deep into the postal delivery infrastructure for final deliveries to residences. 

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Is the Truck Load Industry Looking at More Merges, Like Ocean Freight?

Is the Truck Load Industry Looking at More Merges, Like Ocean Freight?

Posted: March 20, 2018 | Newsletter

The biggest truckload carrier in the United States is growing by 400 trucks with a tuck-in acquisition that it says will immediately add $100 million in revenue and, just as importantly, 400 drivers to its fleet operations. Phoenix-based Knight-Swift Transportation says it is buying Richmond, Va.-based Abilene Motor Express for an undisclosed amount. It's the first expansion since Knight Transportation bought Swift Transportation last September. Knight-Swift, with revenue in excess of $5 billion, already is the largest TL carrier in the nation and now commands about 2 percent of the highly splintered truckload market. Unlike LTL with its complex hub-and-spoke terminal networks, there are few barriers to entry in the truckload sector.

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Will Trump’s New Tariff Strategy Send Ripples to the Ocean Carriers?

Will Trump’s New Tariff Strategy Send Ripples to the Ocean Carriers?

Posted: March 20, 2018 | Newsletter

When assessing the current and future state of United States-bound retailer container shipments, there is a short-term outlook and a long-term outlook, based on the findings and takeaways of the Port Tracker report issued by the National Retail Federation (NRF) The short-term: focus has to do with the timing of the Lunar New Year, which ran from February 16 to March 2, and is expected to impact March volumes. And the longer-term focus centers on recently-enacted tariffs on steel and aluminum imports made official by the White House this week, which have the potential to impact future port volumes, among other factors like hinder consumer spending activity. 

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CPC Predictions for 2018

CPC Predictions for 2018

Posted: December 12, 2017 | Newsletter

Overall: The economy and the stock market are high flying in 2017. Also, there is global unrest as we end this year. US Truck drivers are aging, but some trucking companies are addressing this head on with their own truck driving academies vocational professions to costly 4 year degrees. Amazon has reinvented transportation standards and has created extra capacity, as well as Uber freight. Oil prices have remained semi-stable and Ocean carriers have consolidated into fewer choices. 

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Is the CSX Announcement to Impose Hefty Fees on some Rail Customers in 2018 Justifiable?

Is the CSX Announcement to Impose Hefty Fees on some Rail Customers in 2018 Justifiable?

Posted: December 12, 2017 | Newsletter

Reuters reported that CSX Corp will charge new fees for freight shipments to Mexico and hike charges for customers that fail to load or discharge railcars by agreed deadlines or ship unsafely loaded or overweight railcars as of Jan. 1, the company said. Is this justifiable? Is this just another carrier imposing rate hikes? CSX wants to change shipper behavior to be timely, not overstuff trailers beyond capacity and add new fees for processing paperwork in Mexico and additional handling charges. CSX says the charges were "in line with efforts to optimize the use of assets," including railcars. "These changes are intended to improve the efficiency of our operations," The move was initiated by CSX Chief Executive Hunter Harrison, who took the job in March, has been streamlining operations with his "precision scheduled railroading" strategy, which relies on running freight trains based on strict schedules instead of individual shippers' needs. "Shipper-caused delays are a part of the whole story along with CSX-caused delays," Hatch said. "Hunter Harrison is trying to reset the whole relationship." Hatch said similar charges were part of Harrison's strategy when he led a turnaround at Canadian National Railway Co through 2009. The carrier also said several customers, including U.S. packaged food maker Conagra Brands Inc, would no longer be able to use other railroads to move freight in certain locations if CSX's system can not handle their cars, a process called "reciprocal switching." The change may force these customers to ship freight by truck, which is costlier than rail.

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