LM’s “2015 Rate Outlook” webcast generates more compelling questions on rail and intermodal

I recently had the pleasure of participating in Logistics Management’s 2015 Rate Outlook webcast.  During the 45 minute discussion our panel of top economic and transportation market analysts examined the current state of transportation rate structures, and where we are likely to see them head in 2015.

Click here to listen to the webcast.

Judging by some of the follow-up questions we received from attendees, we’ve hit only the tip of the iceberg.

Margaret Tedlie, a former Accenture Senior Principal who is now senior director of indirect procurement for Crocs, Inc. provided a comprehensive look at the rail and intermodal sectors. Here are some of the most interesting questions posed to her and Brooks Bentz, a supply chain management consultant.

Q: Will more ports on the West Coast see additional demand (outside of CA)? Is additional rail infrastructure being built at these other (outside of CA) ports?

A: West coast ports will have to increase infrastructure investment aimed at improved performance to keep business from diverting through the Panama Canal.

Q: We are hearing drayage issues causing intermodal providers to need to increase driver pay therefore impacting rates. Wouldn’t this impact rates at least slightly up?

A: Yes.  We expect upward pressure on intermodal rates. However, the ability to raise rates will be limited as long as lower fuel prices keep the costs of full truckload down.  In some cases, shippers are taking transit times for no rate decrease.

Q: What does job growth look like in Logistics and Transportation in the coming years - A good industry to stay in ?

A: We see strong and growing demand for professionals in Logistics with a major challenge in finding qualified talent

Q: Do you feel the timing is right for an intermodal RFP?

A: It’s a fine time for an RFP, but it should NOT be limited to Intermodal.  It should be a more holistic approach to properly gauge the value of alternatives.

Q: When do you project that we’ll see the congestion at the ports to get better? 2nd Quarter? 3rd Quarter? We are seeing up to 2 weeks additional delay to our docks so just curious to see if you have any input on this. Thanks so much for your time

A: A close to the Teamsters contract negotiations is the best hope for improved service at the ports in the near term.