Watching over intermodal's interests: interview with Joni Casey
In her 18 years at the helm of IANA, Joni Casey has made it her mission to advance the interests of intermodal freight transportation providers and their customers.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Joni Casey has had a close-up view of how the sausage is made. She has spent more than 30 years in the transportation industry, most of that time working for trade associations representing the trucking industry, third-party logistics service providers, and, since 1997, intermodal service providers.
She began her career as an economist for the American Trucking Associations (ATA) and was the first executive director of that group's Intermodal Conference. She left that position to become CEO of the Transportation Intermediaries Association, where she served until becoming president and CEO of the Intermodal Association of North America (IANA). She has spent the last 18 years at the helm of that organization, whose stated mission is to promote the growth of intermodal freight transportation through innovation, education, and dialogue. The trade group boasts more than 1,000 members, including railroads, ocean carriers, port authorities, intermodal and over-the-road motor carriers, and intermodal marketing companies.
Casey has served on various industry committees and boards, including the executive committee of the Transportation Research Board; the University of Denver's Intermodal Transportation Institute; the Global Maritime and Transportation School of the U.S. Merchant Marine Academy; the board of advisers of her alma mater, the Smith School of Business at the University of Maryland; and the business advisory committee of Northwestern University.
Late last year, the Containerization & Intermodal Institute awarded Casey its Lifetime Achievement Award.
She replied by e-mail to questions posed to her by DC Velocity.
Q: Recent surveys of shippers indicate that intermodal service providers will continue to gain market share from over-the-road carriers. How has the industry achieved that continuing success?
A: The reasons for highway diversions are multiple—in previous years, the higher cost of fuel was one factor (although not for the last 18-plus months). More recently, market share gains have been the result of continued and increased investment in intermodal facilities and infrastructure, a tightening in over-the-road capacity, and the impact of government regulations on driver productivity.
Q: How will the industry sustain that growth?
A: Driver productivity isn't expected to improve in the near term, so this, as well as expected tightening in over-the-road capacity, will continue to assist in highway conversions. And the railroads plan to make continued investments in their intermodal networks. Another key component to sustained growth is delivering consistent service to intermodal customers.
Q: What sorts of initiatives are IANA members undertaking to provide the service consistency that shippers require?
A: Again, I would say investment in the network, from a national/macro perspective, and more and better contingency planning for the types of issues, such as severe weather, that caused service disruptions in the past. I can't speak to specific company strategies, as these are typically commercial issues.
Q: What do you see as the biggest challenges for the intermodal segment and how will the industry address them?
A: The industry's biggest challenges include the following:
1. Driver recruitment and retention. The entire freight industry is dealing with this issue. In terms of intermodal, improving a driver's treatment at (shippers' and receivers') facilities and reducing the amount of time spent in a queue and at a facility will go a long way toward improving the productivity and earnings capability of intermodal drivers.
2. Terminal congestion. The (use) of more technology and the continued formation of chassis pools as well as increased investment in terminal infrastructure should improve facility throughput and equipment utilization.
3. Economic uncertainty. The economic recovery has seen multiple fits and starts. Freight transportation growth is reliant on a strong economic base, and we just aren't seeing consistent consumer spending that contributes to sustained economic growth. Lower gas prices haven't really translated to increased purchasing, and the stronger dollar abroad is adversely impacting U.S. exports. However, up until recent months, international shipment volumes had sustained intermodal growth for 2015.
4. Government regulations. Rail reregulation seems to be an ever-present threat and while the new surface transportation reauthorization legislation did not include an increase to truck size and weight limits, this also remains a possibility, so the intermodal industry must remain vigilant in these areas. It's difficult to know the long-term impact of new electronic logging device regulations on intermodal motor carriers, but there is speculation of additional reductions in driver productivity for the over-the-road market—which makes this issue a potential "good news/bad news" item for intermodal.
Q: What are your highest priorities on the regulatory front?
A: In addition to those cited above, IANA is committed to making sure that the funding provisions set forth in the FAST [Fixing America's Surface Transportation] Act will be used for the benefit of intermodal connectors and investment in intermodal facilities and infrastructure.
Q: What issues are at the top of your agenda for 2016?
A: Basically, tackling the challenges listed above as well as implementation of the freight provisions of the FAST Act.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”