Bubble Chart showing the flow of good in the supply chain
Barstow International Gateway

CA CARB “In-Use Locomotive Regulation” Threatens BNSF Barstow Project

According to Katie Farmer, CEO of BNSF Railroad, the railroad would have to reconsider its plans to build the $1.5 billion Barstow International Gateway (BIG) project if the CA Air Resources Board (CARB) “in-use locomotive” regulation, which went into effect 1-1-24, is fully implemented. The BIG project, located in Barstow, approx. 130 miles from SoCal Ports, it is planned to process port-related rail cargo, streamline rail freight processing, and reduce road congestion and GHG emissions. The regulation requires that locomotives operating in the State be zero-emissions beginning in 2030 for short-line railroads and 2035 for Class I line-haul locomotives. According to Farmer, a commercially viable zero-emissions locomotive doesn’t yet exist.

Various industry groups and local government officials have urged the CARB and the U.S. Environmental Protection Agency (EPA) to change the regulation or prevent enforcement. The CA CARB has requested a waiver from the U.S. EPA, allowing full implementation of the rule. The EPA’s decision is currently pending. Read more at Trains.com BIG project and Transport Topics EPA Waiver

Red Canadian National Locomotive

Canadian Railroad, and U.S. East & Gulf Coast Port, Union Contract Negotiations

Canadian rail union contract negotiations continued with the Teamsters Canada Rail Conference (TCRC) and Canada’s largest railroads: the Canadian National Railway Co. (CN) and the Canadian Pacific Kansas City (CPKC) railroads, since union members authorized a strike on May 1, should an agreement not be reached. The Canadian Government has referred the issue to the Canadian Industrial Relations Board (CIRB), which will rule on the national safety implications of a strike, preventing a strike action before the Board’s decision is made, which is not expected before mid-to-late July. U.S. Shippers that utilize Canadian railroads have contingencies to divert Canadian rail shipments to U.S. West Coast Ports.  

The U.S. East & Gulf Coast Port union contract negotiations were suspended on June 10 by the International Longshoremen’s Assoc. (ILA), representing 45,000 dockworkers at major U.S. East & Gulf Coast Ports, including New York/New Jersey, Norfolk, Savannah, and Houston. The current master contract between the ILA and the U.S. Maritime Alliance (USMX) expires within 4 months on Sept. 30. The ILA stated it has “very little faith that these issues will be addressed in time.” The union has previously stated it will not go past the Sept. 30 expiration and would strike. Shippers have begun diverting freight to U.S. West Coast Ports in advance to avoid potential disruptions from a strike. Read more at Transport Topics Canada Rail and Maritime Executive East & Gulf Coast Ports.

DP World intermodal rail automobile transport service

DP World Launches Cross-Border “Cars in Containers” Intermodal Rail Service

DP World, a top Marine Terminal Operator, announced a new intermodal rail automobile transport service from Mexican factories to U.S. and Canadian destinations, such as Los Angeles, Chicago, Detroit, and Toronto, beginning June 1. The “cars in containers” service transports up to 6 new cars in a 53′ intermodal container with racking systems, which are loaded at Mexican factories or stuffing yards, transported by truck to intermodal rail ramps for transport by rail to destination rail ramps, and then trucked to designated yards where the cars are unloaded and trucked to dealerships. Door-to-door transports range from 8-14 days, depending upon the route. The new DP World service will enable 35,000 cars to be transported across the border in 2024. According to the Mexican Government, Mexico exported over 1.1 million units from January to April 2024 – a 12% year-over-year increase. The top exporters included General Motors with 269,039 vehicles and Nissan with 163,568 vehicles. Read more at DP World

Prologis EV truck charging depot

Prologis Announces the Launch of SoCal’s Largest EV Truck Charging Station

Prologis, a top Industrial Real Estate Investment Trust (REIT), and Performance Team, a SoCal Third-Party Logistics Provider (3PL), announced the launch of SoCal’s largest heavy-duty (HD) electric vehicle (EV) charging depot near the SoCal Ports.  Located on Denker Ave. off the 110 Freeway and within 5 miles of the I-405 and SR91 freeways, the 9 MW depot can charge 96 HD trucks simultaneously. The station is powered by the nation’s largest EV truck microgrid – a network of independent generators paired with 18 MWh of batteries, operating independently of the local grid, built in 5 months, which could otherwise take up to two years to upgrade the grid. The station will power Performance Team’s Volvo VNR Electric Trucks, which have a range of 240 miles and can charge up to 80% in 90 minutes. Read more at Prologis

aerial view of a big box industrial facility

3PLs Top Big Box Warehouse Leases in SoCal Inland Empire

CBRE, a top Industrial Real Estate Brokerage Firm, reported that third-party logistics providers (3PLs) leased the most big-box warehouse space in the SoCal Inland Empire (IE), accounting for 58.6% of all transactions in 2023 – the highest among the top 25 markets examined in the CBRE Report on North American industrial big box warehouses (i.e., >200,000 sq ft). Ian Britton, Senior Managing Director at CBRE, stated: “The themes of rightsizing and streamlining supply chains, efficiency, flexibility, and value stand out in this environment.”… “At the end of the day, it is about reducing delivery times to customers by using a 3PL network of strategic locations to access Southern California’s 24 million people as soon as possible”. Retailers and wholesalers dethroned 3PL providers across North America, taking 36% of all transactions. Read more at CBRE

Hapag-Lloyd dry_container device

Ocean Carrier Hapag-Lloyd Launches Real-Time Dry Container Tracking

Hapag-Lloyd, a top Ocean Carrier, has announced the launch of the “live position” dry container tracking service, which provides full on-demand door-to-door visibility from the start of transportation until arrival at the destination.  Hapag-Lloyd is the first container shipping line to introduce a fleet-wide dry container tracking product. Over two-thirds of the dry container fleet has already been equipped with the tracking device, and the remainder is expected during the summer. Hapag-Lloyd has a container capacity of 2.9 million TEUs. Dr. Maximilian Rothkopf, Hapag-Lloyd COO, stated, “It does close the blind spots of global logistics, enabling real-time decision-making and risk mitigation for our customers while allowing a more efficient steering of our fleet of boxes.” Key features include a user-friendly interface with search functionality by container, booking number, or in batches, providing a quick overview of the shipment’s current location and allowing customers to make any necessary adjustments in real-time. Read more at Hapag-Lloyd