SERVICE between US railways and shippers remained slow in the third quarter, but conditions are beginning to improve, according to jb Hunt Transport Services, reports IHS Media.
'The pricing activity of these last one and a half years is because all of our costs are up so much: JB Hunt's cost, our rail providers' cost, drayage activity, equipment costs,' said JB Hunt's intermodal chief Darren Field.
JB Hunt said service from the BNSF Railway was still below par but has improved in recent weeks.
BNSF's intermodal on-time performance averaged 76.6 per cent between September 5 and October 7, according to filings with the US Surface Transportation Board, up from only 59.7 per cent in the final weeks of the second quarter.
Intermodal marketing companies have said on-time performance of 85 per cent on transcontinental trains is necessary to confidently sell rail transportation to shippers.
The Union Pacific Railroad, speaking at the recent JOC Inland Distribution Conference in Chicago, identified 80 to 85 per cent as its long-term goal.
JB Hunt CEO John Roberts said he was encouraged by BNSF's positive momentum, but more work is necessary.
'I remain in active and regular dialogue with the senior leaders of our primary rail channels on opportunities and investments required to fully restore service levels needed,' said Mr Roberts.
'While some improvement has been seen in rail service and company hiring challenges with our driver force, we continue to face difficulties in equipment availability along with the uncertainty of the direction of macro-economic conditions.'
Equipment availability remains a problem for the entire intermodal industry. How quickly containers turn between shippers is directly linked to how much money intermodal providers such as JB Hunt charge shippers.
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'The pricing activity of these last one and a half years is because all of our costs are up so much: JB Hunt's cost, our rail providers' cost, drayage activity, equipment costs,' said JB Hunt's intermodal chief Darren Field.
JB Hunt said service from the BNSF Railway was still below par but has improved in recent weeks.
BNSF's intermodal on-time performance averaged 76.6 per cent between September 5 and October 7, according to filings with the US Surface Transportation Board, up from only 59.7 per cent in the final weeks of the second quarter.
Intermodal marketing companies have said on-time performance of 85 per cent on transcontinental trains is necessary to confidently sell rail transportation to shippers.
The Union Pacific Railroad, speaking at the recent JOC Inland Distribution Conference in Chicago, identified 80 to 85 per cent as its long-term goal.
JB Hunt CEO John Roberts said he was encouraged by BNSF's positive momentum, but more work is necessary.
'I remain in active and regular dialogue with the senior leaders of our primary rail channels on opportunities and investments required to fully restore service levels needed,' said Mr Roberts.
'While some improvement has been seen in rail service and company hiring challenges with our driver force, we continue to face difficulties in equipment availability along with the uncertainty of the direction of macro-economic conditions.'
Equipment availability remains a problem for the entire intermodal industry. How quickly containers turn between shippers is directly linked to how much money intermodal providers such as JB Hunt charge shippers.
SeaNews Turkey
