Morai-Logistics-Blog-Drones

A little under two weeks ago, the Federal Aviation (FAA) granted approval to e-retailing giant Amazon.com to test-fly their new advanced drones, under certain provision, for potential delivery. This latest petition received quick approval from the FAA compared to past efforts this year, such as the six month delay in approving an earlier prototype for which the FAA received a lot of criticism.

“We’re pleased the FAA has granted our petition for this stage of R&D experimentation, and we look forward to working with the agency for permission to deliver Prime Air service to customers in the United States safely and soon,” said Paul Misener, Amazon vice president for global public policy.

The FAA said Amazon was one of 30 exemptions the agency granted a day earlier for commercial drones, bringing the total to 128 according to this RTT News article.

The article is one of many recent stories involving drones. An increasing number of industries outside of logistics and e-commerce are looking at drones as the technology of the future.

Danny Vogel of JUDSPURA Business Advisor outlined some examples from other industries that have already started to seriously consider utilizing drones:

  • Law enforcement agencies have shown strong interest in using drones for surveillance and public safety while other government agencies have found drones useful in fighting fires, search-and-rescue missions or catastrophic events
  • Construction companies have already begun using drones for mapping sites and monitoring progress, and mining companies have used drones to map the insides of mining tunnels
  • Media companies have also begun testing drones for filming reports and news coverage

What it all means for logistics reliant businesses

Back in February of this year, a number of articles reported on Amazon’s inability at the time to get approval from the FAA to test their drones on American soil. At the same time, one of the company’s major international competitors, the Chinese online giant Alibaba, was ready to test their own drone delivery program by delivering tea to 450 of its Chinese customers in a trial run.

The reason why both companies’ drone delivery programs were so heavily compared to one another was because since Jeff Bezos, CEO of Amazon.com, publicly revealed the Prime Air program in late 2013, Amazon has been in the press as the main proponent of utilizing drones for commercial purposes. Although many companies since then have started their own drone testing, seeing a competitor such as Alibaba made the public all the more aware of how far drone delivery programs have come in two short years.

Many news articles, industry discussions, and blog posts related to logistics discussed how drones would be a hot item discussion in 2015. However, with each passing month it becomes more and more apparent that the discussion around the requirement for drones was settled even before the start of the calendar year. Instead, the real discussion is centering around which companies will come up with the best solution to the problem of possible collisions and best marketing strategy.

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Morai-Logistics-Blog-Nearshoring-vs-Reshoring

In the past, we’ve written about the benefits of near-shoring over off-shoring. However, something we haven’t discussed in much detail is re-shoring.

A recent article on EBN discussed the findings of Cushman & Wakefield’s 2015-2017 North American Industrial Forecast. In the article, writer Jennifer Baljko highlights the differences between the praise reshoring has gotten in the media versus Cushman & Wakefield’s findings and in doing so, asks an important practical question of manufacturing and logistics companies: “Where will you put your factory?”.

Before going any further, it’s important to properly define the terms re-shoring and near-shoring as they are sometimes used interchangeably despite them having very different meanings.

According to a Forbes article on the topic,

Re-shoring refers to manufacturing that was previous done outside of America and has been moved back to America. Near-shoring refers to manufacturing work that has returned closer to America in countries such as Mexico.

Cushman & Wakefield’s findings, as Baljko points out, makes fining quality and affordable space for factories and warehouses one of the biggest challenges for companies who decide to move back home.
“A lack of quality space remains one of the biggest challenges facing manufacturers in the U.S. Emerging technological advances, such as improved measuring/process control, advanced digital technologies and sustainable manufacturing, have made many older facilities functionally obsolete, opening the door for more speculative construction to take place within the next few years,” the report noted.

How Does Near-shoring compare?

Although Cushman & Wakefield’s study advised caution for companies considering re-shoring their manufacturing, their findings did indicate that near-shoring to Mexico might be a more prudent long-term strategy.

“Major drivers of industrial real estate activity continue to reflect the prominent role of distribution and logistics sectors. They include large renovations, like Kuehne+Nagel’s 341,000 sf at O’Donnell Logistics Park, or expansions, like Walmart’s 132,000 sf at Parque Industrial El Convento” they write.

The reason for this is that is because of the competitive land prices the country offers. “Average industrial land costs range from $638.08 psf to $231.85 psf for private industrial parks sites and raw land respectively” they write in their report.

Manufacotring in Mexico also has other advantages that we’ve written about elsewhere, but according to Cushman & Wakefield’s, “Generally, Mexico is increasingly developing a pool of high-skilled workers and rapidly integrating its manufacturing industries with global production lines. Also, in addition to a successful macroeconomic reform agenda, an ambitious investment program by the federal government is expected to bring further improvements to Mexico’s transport and logistics infrastructure” they highlight in their findings. “Given such factors, Mexico’s industrial real estate market is forecast to continue growing and benefiting from increased demand from a diversified range of industries” they conclude.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-Canada-Rail

On the 20th of February, Federal Transport Minister Lisa Raitt revealed The Safe and Accountable Rail Act which proposes amendments to the Canada Transportation Act and Railway Safety Act. The Act, which is a response to the Lac-Mégantic disaster in 2013, will make railways and crude oil shippers responsible for the cost of accidents said Raitt.

Along with other previously introduced rail safety requirements, this new act will introduce the following:

  • Railways moving large volumes of crude oil will now be required to carry insurance of up to $1 billion to cover the costs of a potential accident.
  • Oil companies shipping their product in railway cars, meanwhile, will now face a levy of $1.65 for every tonne of crude shipped roughly 23¢ per barrel.
  • The Act will bring in minimum insurance requirements for railway crude oil shippers using federally regulated railways, from $25 million for carriers of minimally dangerous goods to $1 billion for substantial quantities of them.
  • Two new liability insurance levels — $100 million and $250 million — will be phased in during the two years after the bill receives royal assent. Companies will be required to come up with half that amount in the first year and the full amount the year after that.
  • Companies that ship crude oil will also have to pay a fee per tonne shipped that will go into a $250-million backup fund to cover costs above what their insurance covers if they’re involved in an accident involving crude oil.

Too Much or Too Little?

Although the reaction to the announcement of the Act has been mostly positive by the Canadian press, it hasn’t been without some controversy.

An article in the Financial Post quoted Greg Stringham, of the Canadian Association of Petroleum Producers’
vice-president of oilsands and markets, who expressed some concerns.

In today’s price environment, every little bit affects the economics. Crude oil prices have plunged more than 50% since June, causing many producers to cut spending.

Mr. Stringham said about 200,000 barrels of oil were moving by rail in Canada every day at the end of 2014. He continued by saying that oil and gas producers don’t know whether additional costs from the new insurance burden will cause oil-by-rail movements to become more expensive for producers.

Looking at the comments section of the articles covering this story, it’s easy to see that there is also the other side who feel that the newly proposed Act can isn’t being taken far enough. It seems that this sentiment stems from the recent Canadian Pacific Railway strike which ended just before employees would’ve been legislated back to work.

In a Maclean’s article, NDP Labour critic Alexandre Boulerice condemned the government for taking quick action against the workers when it was revealed that that there was a legislation being poised in end the strike. “It will put public safety at risk, since the problem of long hours and fatigue among those conductors will not be resolved,” he said at the time

A Problem With No Clear Solution

The growing number of train derailments has to do with the growing volumes of oil being shipped. This is a trend and problem for both Canada and the U.S. There’ve been different long-term solutions that have been recommended, but for now, let’s hope that the new Safe and Accountable Rail Act shows some promise in curbing this deadly trend.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Although large BRICS nations Brazil, Russia, India, China and South Africa have accounted for much of the growth and investment in emerging markets, recent years has seen a general slowdown of the respective economies of these countries.

Instead, the non-BRIC countries of ASEAN, GCC, Sub-Saharan Africa and the large, next-tier economies of Indonesia, Nigeria, Bangladesh, Mexico and Pakistan have been the most dynamic, offsetting mixed performance in the BRICS countries that powered emerging markets growth in recent years.

This changing tide in growth economies is reflected in the 2015 Agility Emerging Markets Logistics Index, an annual data-driven ranking of 45 emerging economies accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives.

The Index, ranks emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.

Infographic: 12 Facts Comparing BRICs and Other Emerging Markets in the Logistics and Supply Chain Industry

Morai-Logistics-Infographic-12-Facts-Comparing-BRIC-in-the-Logistics-Supply-Chain

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-Intermodal-ThreatsLast week, the Intermodal Association of North America (IANA) reported in its most recent edition of the Intermodal Market Trends & Statistics report, a strong full-year and fourth quarter 2014 performance for intermodal volumes despite harsh weather conditions, and continuing intermodal congestion.

An article from Logistics Management by Jeff Berman on the report noted that:

Total 2014 intermodal volume—at 16,276,892 containers and trailers––saw a 4.8 percent annual increase compared to 2013. Domestic containers—at 6,444,532—were up 5.7 percent, and international containers—at 8,166,010—were up 4.4 percent. All domestic equipment at 8,110,882—was up 5.1 percent, and trailers rose 2.9 percent to 1,666,350.

For the fourth quarter, total volume—at 4,111,401—was up 3.0 percent compared to the fourth quarter of 2013. Domestic containers were up 5.1 percent at 1,672,332, and international containers—at 2,011,754—were up 2.1 percent en route to leading all intermodal segments for the fourth year in a row and seven of the last eight years. Trailers eked out a 0.1 percent gain at 427,315, and all domestic equipment was up 4.0 percent at 2,099,647.

Based on IANA data, the report observed that 2014 marked the first time in three years that international, domestic containers, and trailers each saw annual gains, while showing the strongest overall intermodal growth since 2011. What’s more, international volume posted its largest annual increase since the economy was emerging from the depths of the recession in 2010, with the 4.4 percent annual growth rate almost double the previous three years, while total international volume was only 4 percent below 2006’s pre-recession peak. And 2014 trailer volume saw its first annual gain in three years, while seeing a 35 percent total decline in the past decade.

IANA President and CEO Joni Casey commented on the findings: “For the first time in four years, international, domestic container, and trailer market segments all posted year-over-year growth. And volume gains were widespread geographically, with eight out of nine regions recording increases during 2014.” IANA officials also suggested that the reason international growth exceeded expectations in the fourth quarter, was because of “stronger than expected container imports.”

Casey added that considering that the overall volume growth rate of 4.8 percent was above 2013, as well as higher than in 2012, 2014 intermodal industry performance modestly exceeded expectations.

The Skies Aren’t All Clear Yet

Although the findings in the report are very encouraging, an article written by Mark Szakonvi on JOC argues that caution is required going forward.

In particular, he noted that a number of threats from the reappearance of brutal weather conditions seen last year, to a West Coast port lockout could quickly derail the rail industry’s gains.

“The railroads aren’t out of the woods yet. Although the waterfront employers said on Jan. 26 that it had reached a tentative agreement on chassis maintenance and repair with the International Longshore and Warehouse Union— a major roadblock to a labor contract — there is still concern of a terminal lockout by employers. If that were to happen, BNSF Railway and Union Pacific Railroad, the two major U.S. Western railroads, would no longer accept marine container terminals. Analysts differ on the severity an embargo of international intermodal traffic would have on rail service, but they agree it would be negative.”

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-Climate-Change

With January in full swing and the weather continuing to plummet, it is important to take a moment and discuss a topic that doesn’t receive as much mention as the more popular topics currently trending. This topic is the impact climate change is having on supply chain logistics.

According to The Associated Press’s study released in 2014 by the Intergovernmental Panel on Climate Change found that the increasing prevalence of severe weather will have negative effects on infrastructure, agriculture and the overall well-being of humans. As climate extremes continue affecting different parts of world, businesses and industries that are reliant on logistics networks are also at considerable risk.

A chilling look at a negative trend

A 2011 study released by EWENT (Extreme Weather impacts on European Networks of Transport) looked a number of detailed case studies and metadata to determine the costs and consequences of extreme weather on European freight and logistics industries and supply chains. The conclusion of the study was disheartening, as stated by the researchers:

The above attitudes indicate that business people in transport, logistics and infrastructure provision and management sectors did not have a good grasp of linkages between the probability of extreme weather and the risk of company damage

Although those surveyed in the study claimed they were prepared and had measures in place to account for weather extremes, they relied too heavily on government assistance claim the researchers,

Therefore, they could not carry out the risk tolerance appraisal and take decisions as to which preventive and risk mitigation strategies to employ. In the absence of understanding of their own risk tolerance threshold, they removed extreme weather hazards from strategic decision-agenda

… which as the study demonstrates, was to their own financial detriment. It isn’t all doom and gloom however.

New field of study and Weather-proofing

‘Adaptive logistics’ has seen major growth since it was proposed in 2010 by Alan McKinnon and Andre Kreie of the UK based Logistics Research Centre at Heriot-Watt University. Their paper on the need for this to become a field for the logistics industry outlined how, at the time, not enough research existed on the impact climate change was having on supply chains. The term itself, ‘adaptive logistics’, is defined in the paper as a field of study that will analyze how logistics will respond to environmental change, and then “this response can either be direct where logistics systems must be modified to minimise adverse climate impacts or indirect, where climatic change alters the demand for logistical services and systems must be reconfigured accordingly”.

Source: Logistics Research Centre, Heriot-Watt University, Edinburgh, UK
Source: Logistics Research Centre, Heriot-Watt University, Edinburgh, UK

Some companies have also begun taking a more pro-active approach to reducing the potential risks of extreme weather affecting operations or revenue.

An excellent article by Inbound Logistics’s Gary Hanifan summarizes and analyzes the findings of Reducing Risk and Driving Business Value, a 2012 survey conducted by the Carbon Disclosure Project (CDP) and Accenture and gives advice as to how to raise supplier awareness about the risks climate change is having on their business. Some of the more interesting points quoted in the article were the following:

  • A current or future risk related to climate change was identified by 70 percent of the 2,500 companies responding to the survey
  • More than half of the supply chain risks due to drought and precipitation extremes are already affecting respondents’ operations, or are expected to have an effect within the next five years
  • Other concerns include the potential for reducing or disrupting production capacity, reduced demand for goods, and even the inability to do business
  • Supplier awareness is an even greater concern. Nearly one in five respondents indicate that their suppliers are not aware of the water risks affecting operations. Another 38 percent say their suppliers are aware of, but not actively engaged in, addressing the challenge

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

We hope everyone has had a great holiday and we would like to wish all of our readers a Happy New Year! To kick off the year, we have finished compiling our infographic on the top logistics and supply chain facts from the news that we’ve collected throughout last year. As there is a large number of news items spanning the many large topics in the logistics industry, we decided to create our Top 10 by focusing on categories:

  1. Drones
  2. Same-Day Deliver
  3. Supplier Diversity and Women
  4. Sustainability
  5. RFID
  6. World Bank Institute’s Private Sector Platform
  7. Automation
  8. Online Retail
  9. Truck Driver Shortage
  10. Logistics Slow Growth

Each of these topics have some pretty interesting facts and statistics that may have been missed in the hustle and bustle of fellow logistics professionals and enthusiasts. And while we haven’t covered all of the interesting facts from 2014; we felt that these topics helped changes the face of the logistics and supply chain industry in 2014 and serves a good snippet to review the year.

Top 10 Logistics and Supply Chain Facts of 2014

Morai-Logistcs-Top-10-Logistics-and-Supply-Chain-Facts-of-2014

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-Reverse-Supply-ChainWith the hustle and bustle of the holiday season come and gone, many people are now returning to their normal work and home life. That is, if you in any fields that are not retail or logistics.

After the holiday season, and especially after Christmas, many shipping services, retailers, e-retailers, and 3PLs get inundated by deluge of unwanted or ill-fitting gifts that need to be returned to their retailer of origin in a process called reverse logistics.

By simply looking at some facts and figures from this Wall Street Journal article, it is clear that the post-holiday time presents major opportunities for many 3PLs, especially those with a specialization in reverse logistics.

  • 20 % of returns happen during the holiday season
  • The U.S Postal Service reported handling 3.2 million returns last year during the two weeks following Christmas
  • Returns policies are critical in driving purchase decisions. In a recent survey of 5,800 U.S. online shoppers, 82% said they were more likely to complete purchases if free returns via a prepaid shipping label or an in-store option were offered, according to comScore Inc., a data-tracking firm that conducted the study for UPS
  • About 66% of consumers now review a retailers’ return policy before making a purchase

The opportunities inherent in reverse logistics, stems from the current e-commerce boom. As demand for online shopping grows, so the does the percentage of customers dissatisfied with their purchases. A large number of retailers and e-commerce companies are ill equipped with the growing number of returns (which is up 15% from the holiday season only two years ago).

With reverse logistical networks being an inherent part of many 3PLs to varying degrees, it makes sense that they be the natural choice for providing the service for other businesses. In fact, the necessity to switch toward more customer-centric strategies (such reducing lead times, improving planning, improving fulfillment, and improving post-sales/returns capabilities) is the focus of an article on MarketWatch.

It is in this same spirit of reverse logistical capitalization that FedEx recently announced its forthcoming acquisition of GENCO, a leading third-party logistics provider in North America that specializes in end-to-end reverse logistics.

Through GENCO’s leadership position in reverse logistics, FedEx will be able to expand its North American presence in the e-commerce market as GENCO’s reverse logistics customer base includes some of the top companies in the technology, retail, and healthcare industries in North America.

An article in SupplyChain Management Review has very interesting information concerning best practice for reverse logistics when it quotes Gary Cullen, chief operating officer of 4PRL LLC:

“A growing trend of being “cheaper and nearer” seems to fit well within the cost sensitive and eco conscious reverse logistics chain of events.

Much efficiency can be found in near-sourcing third party service providers (3PSP) who specialize in the services of redeployment, repair, reuse, recycling, reclamation and resale. This appears to be a successful business model in today’s fuel conscious and green minded environment.

A closer country allows for use of cheaper modes of transportation as well as less overall time and movement.”

Efficiency and response time are the key terms to take away when discussing reverse logistics as the problem of potential value loss arises if items are delayed for too long, especially when it involves fashion items.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Amazon Spain. Source: Wikimedia Commons
Amazon Spain. Source: Wikimedia Commons
Amazon Inc. is in the news again. This time, the online retailing giant got press attention for having petitioned the Federal Aviation Administration (FAA) for an exemption from rules prohibiting the use of drones for commercial purposes. This move, along with its recent job posting calling for experienced pilots to fly its drones, indicates that Amazon is serious about moving Prime Air, an ambitious thirty minute delivery program involving unmanned aerial vehicles, from concept into reality.

Although the experimental delivery program may still be a few years away, it is this sort of unorthodox business strategy that has led the company into having a hand in 20 percent of all e-commerce in North America. Other programs that Amazon has implemented over the past several years has also caused stirs in B2B markets, cloud technology, and those in 3PLs in general.

1 – Shifting from to B2C to B2B

Amazon has been selling millions of items annually to thousands of households for several years. However, since 2012, it has been targeting the lucrative wholesale and distribution market through AmazonSupply which itself grew out of years of experience operating Smallparts.com since it was acquired in 2005.

Whereas common items on Amazon’s main site include books, CDs, and Blu rays, many of AmazonSupply’s items are those that would otherwise only be obtained through specialist distributors such as centrifuges, micrometers and air cylinders. And unlike many other businesses that specialize in industrial B2B transaction, Amazon focuses its marketing through digital media assets such as videos, post downloadable, CAD drawings and user reviews.

Although AmazonSupply’s main competitor, the Chicago-based industrial supplies giant W.W Grainger, holds an estimated 6% of the entire B2B market according to a Forbes article. Despite this, AmazonSupply’s future is bright. It already has Grainger’s online inventory beat by almost twice the amount indicating that it may in fact be the major player in the B2B market rather than its current status as only a major player.

2 – The future is in the cloud

The computer infrastructure that Amazon has built for Amazon Web Services (AWS) is considerable. With it, the company has been able make itself felt in the e-commerce business world by dominating the cloud computing industry and “hosting customers from NASA to Pfizer PFE +0.89% and ringing up an estimated $3.2 billion in revenue last year” writes Claire O’Conner of Forbes.

With its control of the cloud computing industry, “Amazon might leverage its investment in cloud technology to become a clearinghouse for a steadily increasing share of e-commerce business” wrote Dr. Robert C.Lieb and Kristin J. Lieb in the Quarter 3 2014 report. As more and more 3PLs move into the digital world, that means that Amazon will continue to be a looming presence as it moves from customer to competitor.

3 – Customer or competitor?

There’s been some discussion as to whether Amazon is in the process of making a committed move into the 3PL market. The company already offers a range of services and benefits to its two millions vendors such as cheaper transporting services, order management, inventory control, delivery and billing–all of which put it into competition with other 3PLs.

Referring back to Lieb & Lieb study, they found “with the continued expansion of the company’s warehousing, distribution services, order fulfillment, and transportation services, Amazon might become a formidable competitor by offering shippers a broad range of services that 3PLs already provide”.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Source: Wikimedia Commons
Source: Wikimedia Commons
Last week, the Association of American Railroads reported that Mexican intermodal volume reached a high that has not been seen in the last two years. More and more, Mexican shippers have been turning to rail in order to move their goods. In fact, Journal of Commerce claims that Mexico’s intermodal industry is seen as the industry’s quickest-growing sector. Volume of shipments using intermodal transportation has soared about 31% year-over-year to 14,238 units leading up to last week. Carloads for Mexico also increased by approximately 38%, reaching a total carload of 19,745 units.

We’ve mentioned in a previous white paper that nearshoring to Mexico for North American manufacturing has many advantages, one of them being that cross-border logistics to Mexico, through the efforts of governmental intervention and NAFTA, has been improving heavily especially in intermodal transportation requirements. Combine that with rising ocean transport costs, peak season surcharges, and the rising wages in China and you get a prime contender for a tangible, competitive consideration for nearshoring.

One of Mexico’s largest container port, Lazaro Cardenas, has been showing a steady increase in intermodal demand. Efforts to meet the growing demand is shown in the influx of inextments and developments such as the APM Terminal’s deep water terminal which is expected to become operational by 2016.

By the beginning of this month, Mexico contributed to the overall increase in growth for North American intermodal volume. Of the 13 North American railroads, a total of 347,857 units in intermodal volume was reported (a 5.4% increase in volume compared to the same week last year).

Factors that Affect Mexican Intermodal Business

Intermodal rail in Mexico has some great advantages with regards to cross-border logistics, adding more incentive to nearshore as a strategy for North American manufacturing. Below are some facts that show how both incentives from Mexico and the US governments are leveraging their neighbouring border towards a better solution.

  • With the right documents, clearance can take as little as 30 minutes for a 250-foot container, compared to the two hours it takes for a single-container truck.
  • BNSF Railway launched its first all-rail US-Mexico service in May to help facilitate faster movement between borders by partnering with Ferromex (a Mexican railroad).
  • AMP Terminal is currently developing a new deep-water terminal to launch by 2016.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!