Bubble Chart showing the flow of good in the supply chain
CN locomotive

Canada Railroad Union Members Authorize Railroad Strike

On May 1, members of Canada’s largest railroad union voted in favor of a strike unless a new labor contract agreement can be reached. The Teamsters Canada Rail Conference (TCRC), representing 9,000 employees at the Canadian National Railway Co. (CN) and Canadian Pacific Kansas City (CPKC) railroads, announced a work stoppage could occur after May 22 after a mandatory 21-day cooling-off period and a 72-hour notice. The strike would affect freight and commuter services for Canada and the U.S. Midwest, which receives rail freight from Canada’s West Coast Ports such as Vancouver and Prince Rupert. Shippers have contingencies to divert freight to U.S. West Coast Ports, such as Seattle-Tacoma and the SoCal Ports, which could increase rail freight congestion. Read more at AJOT

Union Pacific railroad

UP Railroad to Offer SoCal Intermodal Rail Service to Chicago in 3 Days

The UP Railroad announced a new daily premium domestic intermodal rail service from the UP LATC Terminal in the SoCal City of Industry to the UP Global 2 Terminal in the Chicago metroplex in Northlake, IL. The ‘Z’ train service, which began April 28, 2024, will yield availability on day three, cutting transit time by two days and will compete with team-driver truck services. Jim Vena, UP CEO, stated: “We are delivering the service we sold to our customers – and we’re now able to do it faster.”…“Our railroad offers 70-mph service, allowing us to compete for business while reducing greenhouse gas emissions up to 75% for our customers”. The new service is in addition to another UP SoCal service to the Chicago Global 2 Terminal from the IEIT Inland Empire Terminal, which began on April 1, 2024. Read more at UP

Toyota Tri Gren Facility

Toyota Opens Green Energy Generation Facility at the Port of Long Beach

Toyota announced opening a green energy generation facility at its vehicle processing and distribution center at the Port of Long Beach on May 2nd. The “Tri-gen” system manufactured by FuelCell Energy converts biogas from California landfills into hydrogen, electricity, and water. The Tri-gen system can generate up to 1,200 kgs of hydrogen daily for use in fueling light and heavy-duty hydrogen fuel cell electric vehicles, such as the imported Toyota Mirai midsize car and the Kenworth T680 Class 8 truck, which can be used for SoCal Port drayage. The electricity generated will support Toyota’s Logistics Services’ processing facility, which receives about 200,000 new Toyota and Lexus vehicles annually. The 1,400-gallon per day water byproduct can support Toyota’s new car wash operations. Read more at Transport Topics

COSCO new facility

Ocean Carrier COSCO Launches E-Commerce Fulfillment Warehouse in SoCal

The Ocean Carrier COSCO launched a self-operated fulfillment warehouse in the Los Angeles region as part of a major expansion of its global warehousing network tailored for e-commerce customers. The 177,141 sq. ft. facility is strategically located in Rancho Cucamonga, 60 minutes from the Port of Los Angeles and the Los Angeles International Airport. The facility features high-efficiency capabilities, achieving unloading and shelving within 48 hours, with 95% of goods dispatched within the first 24 hours and 98% within 48 hours, and offers dropshipping, transit for medium and large-sized goods, including home appliances and furniture, end-to-end truck dispatching, and in-warehouse operations. Read more at COSCO

CA trucking

Nebraska and 16 Other States Sue CA over the “Advanced Clean Fleet” Mandates

In a lawsuit filed in the Eastern District of CA on May 13th, Nebraska and 16 other States are suing the State of California over the CA “Advanced Clean Fleet” (ACF) electric truck mandates, including laws where only new zero-emissions trucks would be sold in California beginning in 2035 and where only zero-emissions trucks would be on California roads by the 2040s. The suit charges that the CA ACF regulations would go over federal law, disrupt supply chains across the country, be unable to handle higher payload capacities and harm all States that didn’t have such mandates since so many trucking routes were CA-based. In addition to the CA suit, Nebraska and 23 other States sued the U.S. Environmental Protection Agency over a new rule passed in March, which directs that 30% of heavy-duty trucks in the U.S. must be electric by 2032.  Read more at California Globe

Ryder EV Trucks

Ryder Study: Total Cost to Transport by EV Trucks Almost Double that of Diesel Trucks

A new study performed by Ryder concludes the total cost to transport products by a Class 8 Heavy-Duty Electric Truck is nearly double that of a diesel-powered truck in CA. In a study titled “Charged Logistics: The cost of electric vehicle conversion for U.S. commercial fleets,” Ryder System, a top logistics & transportation company that manages nearly 250,000 commercial vehicles throughout North America, found for Class 8 vehicles, such as Port drayage trucks, the annual increased cost to convert to Electric Vehicles (EVs) in CA is $314,000 or 94%, including the cost of the vehicle, labor, fuel and EV charging infrastructure. The study states: “In addition to the limited support infrastructure and EV availability, the business case for converting to EV for most payload and mileage applications is extremely challenging”… “Furthermore, mandating an EV transition at this time may lead to disruptions in our nation’s supply chains as well as crippling inflationary pressures on all products moved by trucks.” Read more at Ryder