The Asia-Prince Rupert, BC-Chicago run has a new entry. The claim is that even with Chicago rail delays, it is faster than going to LA/Long Beach. That could be true.
There’s a discussion of it here.
With Canadian Rails trying to take over the KCY line in the US, the route could perform even better.
By Martina Li in Taiwan 08/10/2021
Cosco offers faster, intermodal, alternative Asia-US route via Canada – The Loadstar
Posted in Logistics, Ports, Rail, Shipping, Supply Chains
Tagged Chicago, China, container shipping, intermodal, Logistics, ports, Prince Rupert, supply chains
This article outlines why intermodal is not such a good option for US distribution. Though the trucking market is ‘maxed-out’, meaning it is hard to get a trucking firm to move a container, rail is having its own congestion and shortage difficulties.
And chassis remain a problem area. Most leasing companies, who own the chassis, prefer large long-term deals with ocean carreirs rather than shorter term deals for local movements in the US. The article refers to the trucker-owned chassis pool in the Midwest, which seems to be shunned by the leasing companies, creating a shortage of chassis for containers.
Today, we can’t find any area of logistics that isn’t suffering over something. A far cry from a year or two ago.
By Ian Putzger, Americas correspondent 02/09/2021
Grim outlook for intermodal as an alternative to ‘maxed-out’ US truck market – The Loadstar
Posted in Logistics, Rail, Supply Chains, Trucking
Tagged chassis pools, delays, intermodal, Logistics, supply chains, transportation
If you are interested in rail transport, you certainly will be interested in the proposed merger of the Kansas City Southern (KCS) rail line with a Canadian railroad.
Both Canadian Northern (CN) and Canadian Pacific (CP) have made offers to merge with KCS.
It’s important because either merger would let there be direct rail service between Canada and Mexico. Mexico is an important low-cost component manufacturing country, and Canada is a highly developed first-world economy, with also many intrnational connections. KCS has taken great pains over the last 10 years to develop service into and outof Mexico, and is probably the paramount player. Other major US railroads, such as BNSF, UP, and Norfolk Southern (NS), have not worked to build this capability to the same degree. So KCS is a kind of unique prize, especially for the Canadian railroads.
So far the story is one of competing buyers for KCS. CP made the first offer, but as time was running out for acceptance, CN came in with a larger offer. It involves some specialized and complex merger techniques. The Surface Transport Board (STB), a US government agency which regulates railroads in the US, has just rejected the merger, based on the form itis to take. This means that the two firms in the current merger discussions will need to try to rearrange their proposed deal structure to try to meet the STB objections. It also gives the alternate partner, CP, an opportunity to come back to the negotiations with KCS and make an offer more likely to succeed.
If there is a merger, what will happen? One thing you can be sure of is that over time the leader in the merger, the Canadian firm, will influence rail operations more and more. For shippers, it will be easier to make arrangements from Mexico to the US and Canada, and vice versa. It’s not clear how domestic US shippers will be affected. KCS serves a rural midwestern region that is not as well served by other railroads, and that will probably continue. ButKCS connections with other parts of the US may suffer a bit.
The combination of companies will be a powerhouse, putting the line in the class of UP and BNSF, the top major railroads in the US.
By Alex Whiteman and Ian Putzger 01/09/2021
STB blocks CN bid for Kansas City Southern – ‘not in the public interest’ – The Loadstar
Posted in Logistics, Rail, Strategy, Supply Chains
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