As it pertains to global trade inland port terminals diversify the US supply chain. The escalation of e-commerce sales is affecting Intermodal logistics and taxing ground shipping of businesses such as UPS and Federal Express. The railway – to – maritime port part of inland ports relieves the over – the – road capacity tension on those businesses when obtaining inbound shipments. With the revival and growth of the railway industry giving rise to augmented rail-to-rail and Intermodal (rail-to-truck) cargo capacity methods, dry port terminals have facilitated the circumvention of rising diesel fuel prices and retrenchment in the trucking/carrier business over recent years.
Throughout the last five years, truck carriers like J. B. Hunt, Werner Enterprises and CRST/Malone (Cedar Rapids Steel Transport’s flatbed division) have cut over-the-road capacity to 15 percent from a previous 12 percent cutback. According to Logistics Management’s September 2012 online problem, cost developments for trucking carrier sector specialized services, like LTL or less-than-truckload, general freight, tanker and other specialized freight solutions, are declining, down 9 percent just in June and July.
Correct to forecast, retail giant JC Penny, consolidating its East/West coast operations, set up a 1.1 million square foot retail distribution center on site. JCPENNEY’s Alliance, Texas distribution center went fully functional in January 2001. The continued development people inland port logistics infrastructure has to be lockstep together with the commercial needs of retail sector giants like Wal-Mart and Lowes, as well as being able to maintain a competitive edge internationally.
In case the labor insurance contract problems will not be settled with the longshoremen and port operators, a workforce on strike might be upcoming. By year’s ending quickly approaching, an impending strike may have a morbid effect on commerce for major ports through the entire state and bring adversity in all facets of the worldwide supply-chain, from re routing and hoarding of goods and services cost hedging and stock depletion.