UK study: Future looks better for rail than road in US

US INTERMODAL operators look set to benefit from the trucking sector's woes as they come under pressure from rising oil prices and increased regulation, says the US Trucking, Intermodal and Rail 2011 report from the UK's Transport Intelligence.


The US transport industry is bouncing back from a severe freight recession which began two years before the global economic downturn, said the report.


Although prospects for the rail and intermodal are good, trucking faces uncertainty, according to the Ti's Intermodal and Rail Report 2011.


The prolonged period of falling volumes has had a systemic impact on much of the trucking industry, bringing several major players close to collapse and resulting in greatly reduced capacity, said a synopsis of the report.


While the market environment in which they operate has become more positive, there is still the possibility that rising oil prices will drive many operators in the fragmented sector out of business.


"The oil price, smaller fleets, a reduction in the number of trucking companies combined with greater regulation of the sector by the government has had the impact of creating tighter trucking capacity, a shortage of truck drivers and higher rates," said the report.


"This in turn has benefited the rail intermodal operators who are less exposed to many of these external pressures. This has allowed them to take market share from the trucking sector," it said.


Cathy Roberson, Ti's US analyst and author of the report, commented: "Although overall the outlook for the industry is good, especially so for rail and intermodal operators, the one major cloud on the horizon is the impact of global oil prices. Soaring costs could potentially strangle the entire sector's recovery by eventually suppressing demand."


Before joining Ti, Ms Roberson spent several years at UPS Supply Chain Solutions as a marketing analyst based in Atlanta. At UPS, she was responsible for researching and analysing a wide variety of topics along with competitive intelligence responsibilities. She also has operations experience working directly with customers and assisting with transport needs, said the Ti statement.


"Foreign NVOCCs are also disadvantaged by more stringent bond posting requirements than US licence holders," Mr Gillespie said.


Said FIATA president Jean-Claude Delen: "We have long protested the discrimination against NVOCCs in the USA, especially with respect to tariff publication and bond posting requirements. We also continue to be concerned over the issue of data confidentiality in dealings with the USA."
(Source:http://www.schednet.com)