Food Shippers of America - Spring/Summer 2017 - 55

I N D U S T R Y
F O R E C A S T

Freight Volumes Expected to
Rise, But New Regulations
Challenge Industry

W

by Brian D. Paolillo

ith the election season behind us, the

transportation industry continues to see

challenges moving forward. In 2016, the

U.S. suffered its worst year of economic

growth since 2011, with the GDP increasing only 1.6 percent.
The economy limped along as consumer spending, business
investment and exports slowed and oil prices dropped,
although the labor market continued to add jobs at a moderate,
albeit slower pace than it did in 2015.

DESPITE OPERATING UNDER A cloud of
economic uncertainty, however, business
confidence is expected to improve
as the industry anticipates a more
growth-friendly administration. If it comes
to fruition, President Trump's proposed
trillion dollar multi-year infrastructure
program would make desperatelyneeded improvements to the U.S.
highway network, as well as ports, inland
waterways and intermodal connectors.

Transportation: Positive Signs
December's truck tonnage reflected a
pattern of votaility that plagued most of
2016, according to the American Trucking
Associations (ATA). Truck tonnage fell
6.25 percent in December, following a
6.2 percent decline in November. On a
positive note, for all of 2016, tonnage
was up 2.5 percent from 2015. Recent
market trends point to a coming uptick
in tonnage, according to the ATA, which
sees positive signs for freight volumes
in 2017, most notably via reduced

inventories. Continued spending by
consumers, larger wage gains and solid
home construction will also help boost
freight volumes.
Upcoming regulatory changes for
food shippers and carriers will add
transportation costs and impact
capacity.The electronic logging
mandate, which goes into effect
December 17, 2017, is expected to
tighten capacity by eliminating smaller
fleets that are unable to comply.
Industry predictions about the reduction
of capacity following the mandate vary
from 3-5 percent to 6-10 percent.
Complying with regulatory standards
mapped out in the Food Safety
Modernization Act (FSMA) rule for
preventive controls for human food
are also costly. The rule, which goes
into effect on April 6, 2017, requires all
those involved in transporting human
food - including shippers, loaders,

carriers and receivers -to follow best
practices for sanitary transportation,
such as properly refrigerating food,
adequately cleaning vehicles between
loads and properly protecting food
during transportation.
With the increased cost and complexity
that FSMA compliance adds to the
supply chain, more shippers are turning
to third-party logistics providers, who
adhere to the regulations and are able
to spread transportation costs across a
wider network.
Intermodal: Rebound Ahead
Intermodal volumes decreased in 2016
for the first time since 2008.  According
to the Intermodal Association of North
America (IANA), volume fell 2.1 percent
in 2016, driven down by weak
international volume and lower trailer
loadings. And while the fourth quarter
numbers showed improvement, the
first part of 2017 will give the industry
a better sense of how the growth
curve will progress. On the domestic
side, driving additional over-the-road
truck conversion will continue to be
challenging until highway capacity
tightens and fuel prices rebound.
Lastly, railroads will continue to open
more short-haul corridors. The speed of
technology, engineering and innovation
will continue to drive improvements in
the intermodal delivery model that will
benefit shippers and lower the barriers
to moving more freight onto the rails. ■
Brian D. Paolillo is senior vice president of
strategic sales, Yusen Logistics (Americas)
Inc., Jacksonville, FL.

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

55


http://www.foodshippersofamerica.org

Table of Contents for the Digital Edition of Food Shippers of America - Spring/Summer 2017

President’s Letter
Filling the Supply Chain Talent Gap
Expanded Panama Canal = Expanded Options
Capacity Concerns
FAST Act Impact
Cooperative Effort Provides Safe Havens for Drivers
Elaine Chao Returns to Washington as Secretary of Transportation
Industry Forecast
Regulatory Update
Is Your RFP Built to Source the Right ELD Solution?
Top 10
FSA Annual Conference
Retail Trends
As the World Returns
Stop Managing, Start Coaching
A B.O.L.D. Approach to Succeeding in an Unpredictable Business World
People Problems Prevented
Batory Food
Bongards Creameries
Operation Blessing
Ruiz Food Products, Inc.
Save-A-Lot
Scotlynn
Sun-Maid
FSA Members
In the News…
Index of Advertisers
Food Shippers of America - Spring/Summer 2017 - intro
Food Shippers of America - Spring/Summer 2017 - cover1
Food Shippers of America - Spring/Summer 2017 - cover2
Food Shippers of America - Spring/Summer 2017 - 3
Food Shippers of America - Spring/Summer 2017 - 4
Food Shippers of America - Spring/Summer 2017 - 5
Food Shippers of America - Spring/Summer 2017 - 6
Food Shippers of America - Spring/Summer 2017 - 7
Food Shippers of America - Spring/Summer 2017 - 8
Food Shippers of America - Spring/Summer 2017 - 9
Food Shippers of America - Spring/Summer 2017 - 10
Food Shippers of America - Spring/Summer 2017 - President’s Letter
Food Shippers of America - Spring/Summer 2017 - 12
Food Shippers of America - Spring/Summer 2017 - 13
Food Shippers of America - Spring/Summer 2017 - Filling the Supply Chain Talent Gap
Food Shippers of America - Spring/Summer 2017 - 15
Food Shippers of America - Spring/Summer 2017 - 16
Food Shippers of America - Spring/Summer 2017 - 17
Food Shippers of America - Spring/Summer 2017 - 18
Food Shippers of America - Spring/Summer 2017 - 19
Food Shippers of America - Spring/Summer 2017 - 20
Food Shippers of America - Spring/Summer 2017 - 21
Food Shippers of America - Spring/Summer 2017 - Expanded Panama Canal = Expanded Options
Food Shippers of America - Spring/Summer 2017 - 23
Food Shippers of America - Spring/Summer 2017 - 24
Food Shippers of America - Spring/Summer 2017 - 25
Food Shippers of America - Spring/Summer 2017 - 26
Food Shippers of America - Spring/Summer 2017 - 27
Food Shippers of America - Spring/Summer 2017 - 28
Food Shippers of America - Spring/Summer 2017 - 29
Food Shippers of America - Spring/Summer 2017 - 30
Food Shippers of America - Spring/Summer 2017 - 31
Food Shippers of America - Spring/Summer 2017 - Capacity Concerns
Food Shippers of America - Spring/Summer 2017 - 33
Food Shippers of America - Spring/Summer 2017 - 34
Food Shippers of America - Spring/Summer 2017 - 35
Food Shippers of America - Spring/Summer 2017 - 36
Food Shippers of America - Spring/Summer 2017 - 37
Food Shippers of America - Spring/Summer 2017 - 38
Food Shippers of America - Spring/Summer 2017 - 39
Food Shippers of America - Spring/Summer 2017 - 40
Food Shippers of America - Spring/Summer 2017 - 41
Food Shippers of America - Spring/Summer 2017 - FAST Act Impact
Food Shippers of America - Spring/Summer 2017 - 43
Food Shippers of America - Spring/Summer 2017 - 44
Food Shippers of America - Spring/Summer 2017 - 45
Food Shippers of America - Spring/Summer 2017 - 46
Food Shippers of America - Spring/Summer 2017 - Cooperative Effort Provides Safe Havens for Drivers
Food Shippers of America - Spring/Summer 2017 - 48
Food Shippers of America - Spring/Summer 2017 - 49
Food Shippers of America - Spring/Summer 2017 - 50
Food Shippers of America - Spring/Summer 2017 - Elaine Chao Returns to Washington as Secretary of Transportation
Food Shippers of America - Spring/Summer 2017 - 52
Food Shippers of America - Spring/Summer 2017 - 53
Food Shippers of America - Spring/Summer 2017 - 54
Food Shippers of America - Spring/Summer 2017 - Industry Forecast
Food Shippers of America - Spring/Summer 2017 - 56
Food Shippers of America - Spring/Summer 2017 - 57
Food Shippers of America - Spring/Summer 2017 - Regulatory Update
Food Shippers of America - Spring/Summer 2017 - 59
Food Shippers of America - Spring/Summer 2017 - 60
Food Shippers of America - Spring/Summer 2017 - 61
Food Shippers of America - Spring/Summer 2017 - 62
Food Shippers of America - Spring/Summer 2017 - Is Your RFP Built to Source the Right ELD Solution?
Food Shippers of America - Spring/Summer 2017 - 64
Food Shippers of America - Spring/Summer 2017 - 65
Food Shippers of America - Spring/Summer 2017 - 66
Food Shippers of America - Spring/Summer 2017 - Top 10
Food Shippers of America - Spring/Summer 2017 - 68
Food Shippers of America - Spring/Summer 2017 - FSA Annual Conference
Food Shippers of America - Spring/Summer 2017 - 70
Food Shippers of America - Spring/Summer 2017 - 71
Food Shippers of America - Spring/Summer 2017 - 72
Food Shippers of America - Spring/Summer 2017 - 73
Food Shippers of America - Spring/Summer 2017 - Retail Trends
Food Shippers of America - Spring/Summer 2017 - 75
Food Shippers of America - Spring/Summer 2017 - 76
Food Shippers of America - Spring/Summer 2017 - 77
Food Shippers of America - Spring/Summer 2017 - As the World Returns
Food Shippers of America - Spring/Summer 2017 - 79
Food Shippers of America - Spring/Summer 2017 - 80
Food Shippers of America - Spring/Summer 2017 - 81
Food Shippers of America - Spring/Summer 2017 - 82
Food Shippers of America - Spring/Summer 2017 - Stop Managing, Start Coaching
Food Shippers of America - Spring/Summer 2017 - 84
Food Shippers of America - Spring/Summer 2017 - 85
Food Shippers of America - Spring/Summer 2017 - A B.O.L.D. Approach to Succeeding in an Unpredictable Business World
Food Shippers of America - Spring/Summer 2017 - 87
Food Shippers of America - Spring/Summer 2017 - People Problems Prevented
Food Shippers of America - Spring/Summer 2017 - 89
Food Shippers of America - Spring/Summer 2017 - 90
Food Shippers of America - Spring/Summer 2017 - 91
Food Shippers of America - Spring/Summer 2017 - 92
Food Shippers of America - Spring/Summer 2017 - Batory Food
Food Shippers of America - Spring/Summer 2017 - 94
Food Shippers of America - Spring/Summer 2017 - Bongards Creameries
Food Shippers of America - Spring/Summer 2017 - 96
Food Shippers of America - Spring/Summer 2017 - Operation Blessing
Food Shippers of America - Spring/Summer 2017 - 98
Food Shippers of America - Spring/Summer 2017 - Ruiz Food Products, Inc.
Food Shippers of America - Spring/Summer 2017 - 100
Food Shippers of America - Spring/Summer 2017 - Save-A-Lot
Food Shippers of America - Spring/Summer 2017 - 102
Food Shippers of America - Spring/Summer 2017 - Scotlynn
Food Shippers of America - Spring/Summer 2017 - Sun-Maid
Food Shippers of America - Spring/Summer 2017 - FSA Members
Food Shippers of America - Spring/Summer 2017 - 106
Food Shippers of America - Spring/Summer 2017 - In the News…
Food Shippers of America - Spring/Summer 2017 - Index of Advertisers
Food Shippers of America - Spring/Summer 2017 - 109
Food Shippers of America - Spring/Summer 2017 - 110
Food Shippers of America - Spring/Summer 2017 - cover3
Food Shippers of America - Spring/Summer 2017 - cover4
https://www.nxtbook.com/naylor/FUDB/FUDB0118
https://www.nxtbook.com/naylor/FUDB/FUDB0217
https://www.nxtbook.com/naylor/FUDB/FUDB0117
https://www.nxtbook.com/naylor/FUDB/FUDB0216
https://www.nxtbook.com/naylor/FUDB/FUDB0116
https://www.nxtbook.com/naylor/FUDB/FUDB0215
https://www.nxtbook.com/naylor/FUDB/FUDB0115
https://www.nxtbookmedia.com