Insights - February 2016 - (Page 5)
IANA's Chair Discusses Association's 2016 Priorities
As Katie Farmer begins
programs that facilitate
her second year as the IANA
shipment visibility and
chairman, she sees interfluidity, enable business
modal growth opportunitransactions and improve
ties among the economic
driver productivity.
challenges of 2016 and
The congestion that
evolving long-term trends.
we saw at the ports on
In a January interview
both coasts in early 2015
with Intermodal Insights,
illustrated just how interBNSF Railway Co.'s group
connected intermodal is.
Farmer
vice president for consumer
The industry responded with
products shared her views on IANA
increased contingency planning - are
priorities, industry collaboration and
we out of the woods? What is the potengrowing intermodal's future customers
tial for disruptions in 2016?
and workforce.
There are no major longshore
Congratulations on your re-election
worker agreements expiring in 2016,
as chairman for the 2016 year. Last year
so the ports should be able to remain
began with the slowdown on the West
focused on continuing to work to
Coast and ended on stronger footing,
decongest their operations. Ports and
including legislation that was favorable
terminal operators are addressing
to the industry (FAST Act, PTC extension,
congestion by building larger, more
etc.). What do you and the IANA Board
modern facilities as well as making
view as the priorities for the coming
operational changes such as extending
year?
terminal gate hours.
I am looking forward to serving my
The trend to keep an eye on in the
second term as chairman with such
coming years for international cargo
an active and creative Board. This year,
will be the growing use of mega ships
we will remain focused on the issues
by our ocean carrier partners. The use
impacting the intermodal industry.
of vessels capable of handling as much
Our priorities for the coming year will
as 18,000 20-foot equivalent containers
include:
will continue and the intermodal industry will need to keep working with the
* Remaining focused on driver issues
ports and its carrier partners to provide
that can improve productivity and
direct access to the nation's biggest and
quality of life and ultimately ensure
fastest-growing markets.
adequate driver supply for the
intermodal industry. The Board has
Despite the dramatic drop in fuel
formed a subcommittee to engage
pricing of the past year, consumers
in these issues, which are also being
have not opened up their wallets, and
tackled at the task force level, in
this has impacted intermodal volumes.
IANA's standing committees.
What is your outlook for consumer
*
*
Continuing to position IANA as
a thought leader through
promotion of the benefits of
intermodal and the value we
bring to our customers and the
transportation industry. Another
Board subcommittee is working on
a resource center for intermodal
stakeholders and various educational
tools that will be made available to
the industry this year.
Expanding IANA's Intermodal
Information Services through new
spending? Where do you see intermodal
growth coming from in the next 12 - 18
months?
I expect we will see continued, but
mixed growth in consumer spending
heading into 2016. We will see growth
in intermodal, particularly on the domestic front with much of that growth
consisting of freight that used to move
solely by truck, while other sectors will
be challenged. The U.S. manufacturing
sector, a key driver of railroad volumes,
is feeling the adverse effects of the
strong dollar and lower commodity prices. On the flip side, consumer
spending has the potential to get a lift
from lower fuel prices, as well as the
declining unemployment rate.
The challenge for 2016 for the intermodal industry will be to continue to
find growth opportunities and to make
investments in the face of the current
softer economic climate. Investments
will need to continue to be made to
position the industry to handle our
customer's long term growth requirements. An example is the recent capital
expenditures that BNSF made in its
Northern Corridor route totaling approximately $3.5 billion. This will allow
BNSF to offer expedited domestic intermodal service to and from Chicago and
St. Paul, Minn. to the Pacific Northwest
and to and from Seattle, in response to
customers' shipping needs.
The increasing population in the
U.S. will continue to drive demand. The
U.S. Census Bureau estimates that the
total U.S. population will increase by
more than 98 million between 2014 and
2060. The U.S. moves 63 tons of freight
per person each year. Adding 98 million
more people would mean an additional
6.2 billion tons of freight every year that
needs to move via the most reliable,
cost effective and efficient means. This
continued population growth means
that intermodal will continue to be a
viable and growing transportation solution in 2016 and beyond.
In the future we also need to ensure
we have the ability to effectively and
efficiently build additional U.S. supply
chain infrastructure. That will ensure
our nation's competitiveness and
enable the American workforce to
compete for jobs in this global marketplace. A crucial component to achieving continued success in optimizing our
overall supply chain includes reforming
our processes for permitting projects.
Currently, the process takes too long,
costs too much-including litigation-and could yield better results
if it were improved. The permitting
process delays that our customers and
our industry are facing impact not only
February 2016 | Intermodal Insights 5
Table of Contents for the Digital Edition of Insights - February 2016
Insights - February 2016
FMCSA Proposes Fitness Revisions
IANA Announces Expanded Sponsorship Package
IANA’s Chair Discusses Association’s 2016 Priorities
Container Weight Verification a 2016 Reality
Freight Reports
Sustainability News
Caution Urged on California Driver Reclassification
Port News
In Brief
People in the News
Welcome New Members
Intermodal Calendar
Insights - February 2016
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