Food Shippers of America - Fall/Winter 2017 - 75

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

The Ups and Downs
of Transportation

T

by Kyosuke Noguchi

he U.S. got off to a slow start in 2017, but the
economy picked up steam in the second quarter
as consumers ramped up spending. Economic
growth accelerated to an annual rate of 2.6

percent from April through June - more than double from the
first quarter's 1.2 percent growth rate. Wage growth, however,
decelerated despite an unemployment rate that averaged 4.4
percent in the second quarter. The sluggish wage gains, along
with the uncertainty of the Trump administration, continue to
cast a shadow over the growth outlook.
The acquisition of Whole Foods Market
by Amazon is also bringing uncertainty,
especially to the supermarket
business, which is already facing fierce
competition and declining prices. The
deal, worth nearly $14 billion, will give
Amazon a nationwide network of grocery
stores and a significant retail presence.
How the giant retailer reshapes the
supermarket industry remains to be
seen, but Amazon is clearly re-inventing
the traditional business model.
Amazon is not the only disruptor facing
the food industry. According to a recent
report by the Grocery Manufacturers
of America (GMA) and the Boston
Consulting Group, there is a host of
other business models emerging that
are likely to change the supermarket
landscape. They include traditional
retailers that are building out their
click-and-collect services, such as
Walmart, Target and Kroger, as well as
the pure-play digital retailers, including

Boxed.com and Jet.com. These pure-play
retailers are priced-based, conveniencebased and category-focused and are
poised to become "go-to" sources for
their target consumers, mixing product
assortment with category specific
expertise and customer service.
FSMA: Collaboration is Key
Food safety continues to be a concern,
and the industry is facing a huge raft
of regulations as requirements of the
Food Safety Modernization Act (FSMA)
are rolled out. To comply, food shippers
are seeking more collaboration with
their transportation providers and are
being more specific regarding sanitary
requirements for their shipments -
regardless of whether the shipments
are covered under the Transportation
of Human and Animal Food regulations
or not. 
In addition, more food shippers are
requiring that transportation providers

enter into written contracts that require
providers to accept broader liability than
required under the law. Specifically, food
shippers are requiring transportation
providers to accept liability for any seal,
temperature or other irregularity in
transport, even if there is no evidence
that the shipment is adulterated or
damaged. Food shippers also want
transportation providers to waive
inspection and salvage rights.
Rail and Intermodal: On the Right Track
The rail and intermodal markets are finally
back on track after last year's slump,
with volume and capacity on the rise.
U.S. carload volumes are up 5.1 percent
through the first eight months of 2017,
according to the Association of American
Railroads (ARA). This is a significant
improvement compared to a 10.3 percent
decline for the same period a year ago.
On the intermodal side, volumes gained
4.5 percent in Q2, the strongest growth
in nearly three years, according to the
Intermodal Association of North America
(IANA). International was the primary
driver, rising 5.6 percent - domestic
containers and trailer volumes increased
3.2 percent and 3.9 percent respectively.
This year has also been positive for
intermodal marketing companies, which
saw clear gains in the intermodal sector.
While highway loads declined by 3.4
percent, intermodal volumes were up
5.8 percent for the quarter, according to
IANA. The net result was a 0.6 percent
improvement over the same period
last year. ■
Kyosuke Noguchi, SVP, Transportation

Group, Yusen Logistics (Americas) Inc.,
Transportation Division, Jacksonville, FL
32224.

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

75


http://www.Boxed.com http://www.Jet.com http://www.foodshippersofamerica.org

Table of Contents for the Digital Edition of Food Shippers of America - Fall/Winter 2017

President's Letter
Help Wanted
The Value in Orchestrating a Scheduled Transportation Plan
Building Better Supply Chains with Blockchain
Blockchains for Trucking
Truck Platooning
Regulatory Update
Rail Update
Evolution of Logistics: Developing Our Leaders of Tomorrow
Dinner at the Door
Industry Forecast
Retail Trends
Food and Beverage Industry Undergroing Transformation
Not My Tribe: Beyong Millennial Stereotypes
Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Burris Logistics
Vantix Logistics
FSA Members
Membership Application
Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - Intro
Food Shippers of America - Fall/Winter 2017 - cover1
Food Shippers of America - Fall/Winter 2017 - cover2
Food Shippers of America - Fall/Winter 2017 - 3
Food Shippers of America - Fall/Winter 2017 - 4
Food Shippers of America - Fall/Winter 2017 - 5
Food Shippers of America - Fall/Winter 2017 - 6
Food Shippers of America - Fall/Winter 2017 - 7
Food Shippers of America - Fall/Winter 2017 - 8
Food Shippers of America - Fall/Winter 2017 - 9
Food Shippers of America - Fall/Winter 2017 - 10
Food Shippers of America - Fall/Winter 2017 - President's Letter
Food Shippers of America - Fall/Winter 2017 - 12
Food Shippers of America - Fall/Winter 2017 - 13
Food Shippers of America - Fall/Winter 2017 - Help Wanted
Food Shippers of America - Fall/Winter 2017 - 15
Food Shippers of America - Fall/Winter 2017 - 16
Food Shippers of America - Fall/Winter 2017 - 17
Food Shippers of America - Fall/Winter 2017 - 18
Food Shippers of America - Fall/Winter 2017 - 19
Food Shippers of America - Fall/Winter 2017 - 20
Food Shippers of America - Fall/Winter 2017 - The Value in Orchestrating a Scheduled Transportation Plan
Food Shippers of America - Fall/Winter 2017 - 22
Food Shippers of America - Fall/Winter 2017 - 23
Food Shippers of America - Fall/Winter 2017 - Building Better Supply Chains with Blockchain
Food Shippers of America - Fall/Winter 2017 - 25
Food Shippers of America - Fall/Winter 2017 - 26
Food Shippers of America - Fall/Winter 2017 - 27
Food Shippers of America - Fall/Winter 2017 - 28
Food Shippers of America - Fall/Winter 2017 - 29
Food Shippers of America - Fall/Winter 2017 - 30
Food Shippers of America - Fall/Winter 2017 - 31
Food Shippers of America - Fall/Winter 2017 - 32
Food Shippers of America - Fall/Winter 2017 - Blockchains for Trucking
Food Shippers of America - Fall/Winter 2017 - 34
Food Shippers of America - Fall/Winter 2017 - 35
Food Shippers of America - Fall/Winter 2017 - Truck Platooning
Food Shippers of America - Fall/Winter 2017 - 37
Food Shippers of America - Fall/Winter 2017 - 38
Food Shippers of America - Fall/Winter 2017 - 39
Food Shippers of America - Fall/Winter 2017 - 40
Food Shippers of America - Fall/Winter 2017 - Regulatory Update
Food Shippers of America - Fall/Winter 2017 - 42
Food Shippers of America - Fall/Winter 2017 - 43
Food Shippers of America - Fall/Winter 2017 - 44
Food Shippers of America - Fall/Winter 2017 - Rail Update
Food Shippers of America - Fall/Winter 2017 - 46
Food Shippers of America - Fall/Winter 2017 - 47
Food Shippers of America - Fall/Winter 2017 - 48
Food Shippers of America - Fall/Winter 2017 - Evolution of Logistics: Developing Our Leaders of Tomorrow
Food Shippers of America - Fall/Winter 2017 - 50
Food Shippers of America - Fall/Winter 2017 - 51
Food Shippers of America - Fall/Winter 2017 - 52
Food Shippers of America - Fall/Winter 2017 - 53
Food Shippers of America - Fall/Winter 2017 - 54
Food Shippers of America - Fall/Winter 2017 - 55
Food Shippers of America - Fall/Winter 2017 - 56
Food Shippers of America - Fall/Winter 2017 - 57
Food Shippers of America - Fall/Winter 2017 - 58
Food Shippers of America - Fall/Winter 2017 - 59
Food Shippers of America - Fall/Winter 2017 - 60
Food Shippers of America - Fall/Winter 2017 - 61
Food Shippers of America - Fall/Winter 2017 - Dinner at the Door
Food Shippers of America - Fall/Winter 2017 - 63
Food Shippers of America - Fall/Winter 2017 - 64
Food Shippers of America - Fall/Winter 2017 - 65
Food Shippers of America - Fall/Winter 2017 - 66
Food Shippers of America - Fall/Winter 2017 - 67
Food Shippers of America - Fall/Winter 2017 - 68
Food Shippers of America - Fall/Winter 2017 - 69
Food Shippers of America - Fall/Winter 2017 - 70
Food Shippers of America - Fall/Winter 2017 - 71
Food Shippers of America - Fall/Winter 2017 - 72
Food Shippers of America - Fall/Winter 2017 - 73
Food Shippers of America - Fall/Winter 2017 - 74
Food Shippers of America - Fall/Winter 2017 - Industry Forecast
Food Shippers of America - Fall/Winter 2017 - 76
Food Shippers of America - Fall/Winter 2017 - Retail Trends
Food Shippers of America - Fall/Winter 2017 - 78
Food Shippers of America - Fall/Winter 2017 - 79
Food Shippers of America - Fall/Winter 2017 - 80
Food Shippers of America - Fall/Winter 2017 - Food and Beverage Industry Undergroing Transformation
Food Shippers of America - Fall/Winter 2017 - 82
Food Shippers of America - Fall/Winter 2017 - 83
Food Shippers of America - Fall/Winter 2017 - 84
Food Shippers of America - Fall/Winter 2017 - 85
Food Shippers of America - Fall/Winter 2017 - 86
Food Shippers of America - Fall/Winter 2017 - 87
Food Shippers of America - Fall/Winter 2017 - 88
Food Shippers of America - Fall/Winter 2017 - 89
Food Shippers of America - Fall/Winter 2017 - 90
Food Shippers of America - Fall/Winter 2017 - Not My Tribe: Beyong Millennial Stereotypes
Food Shippers of America - Fall/Winter 2017 - 92
Food Shippers of America - Fall/Winter 2017 - 93
Food Shippers of America - Fall/Winter 2017 - Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Food Shippers of America - Fall/Winter 2017 - 95
Food Shippers of America - Fall/Winter 2017 - 96
Food Shippers of America - Fall/Winter 2017 - Burris Logistics
Food Shippers of America - Fall/Winter 2017 - Vantix Logistics
Food Shippers of America - Fall/Winter 2017 - 99
Food Shippers of America - Fall/Winter 2017 - 100
Food Shippers of America - Fall/Winter 2017 - FSA Members
Food Shippers of America - Fall/Winter 2017 - Membership Application
Food Shippers of America - Fall/Winter 2017 - Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - 104
Food Shippers of America - Fall/Winter 2017 - 105
Food Shippers of America - Fall/Winter 2017 - 106
Food Shippers of America - Fall/Winter 2017 - cover3
Food Shippers of America - Fall/Winter 2017 - cover4
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