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September 17 2018

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4 The Journal of Commerce | September 17 2018 Mark Szakonyi Letter From the Editor THE TIGHTENING NORTH American truck market — albeit far tighter in the US than in Mexico and Canada, largely because of the electronic logging device (ELD) mandate — is giving extra oomph to freight projects offering shippers options other than the highway. They won't solve all the trucking woes, but with Mexico implementing rules limiting how long truckers can drive and Canada moving forward with its own version of the ELD rule, shippers are seeking alternatives. Mexican shippers already are looking to move more goods via rail and short- sea services, and trucking pressures aren't letting up even if the country's ocean peak is behind it, said Mario Veraldo, managing director for Maersk Line Mexico and Middle America. There's plenty of innovation to crib. More shippers in Georgia, Alabama, and Tennessee now can ship their containers from Murray County, Geor- gia, to the port of Savannah via CSX Transportation, instead of trucking their goods. (Story, page 42). "With the Appalachian Regional Port, we will be able to source the empty containers. Also, it's the same distance from us by truck, but it is closer to the Port of Savannah than Nashville," said Claire Getty, chief financial officer of Thomp- son Appalachian Hardwoods. "Cutting that much rail off and keep-ing the same drayage, we see it as a win." The success of the Greer inland port, serving the Port of Charleston since fall 2013, has helped drive other efforts through North America. An inland port serving the Port of New York and New Jersey is proceeding, thanks to the state comptroller award- ing CSX $19 million for the facility at the railroad's DeWitt Yard. Pointing to inland ports in the US, Ashcroft Ter- minals, the western Canada ramp in which Singapore-based terminal op- erator PSA recently took a 60 percent stake, sees potential in serving the Port of Vancouver, British Columbia, by loading bulk products into marine containers some 200 miles from Can- ada's busiest gateway (Story, page 44). Because of the Jones Act and the efficiency of the railroads, it's highly doubtful we'll see a short-sea network of the likes serving Europe. But there are openings such as in routing Mexican imports through Port Tampa Bay and PortMiami for final delivery in Florida and the Southeast. Shippers are finding they not only can move their goods cheaper via ocean services, but they also can get their goods to destination roughly two times faster than moving over busy land port crossings (Story, page 16). Container-on-barge services also are enjoying momentum in places where truck capacity is tight and heavy commodities limit drivers' haul, and there's limited opportunity for railroads to cut their own rates, sinking barge demand. Volume moved on the Port of Virginia's thrice-weekly container-on-barge in the fiscal year ending June 30 rose 23 percent year over year, to nearly 28,000 TEUs. The barge services, which reduced the need for approximately 54,000 truck trip , save truckers about four hours of driving time by allowing them to pick up loads at Norfolk harbor, giving them the possibility of more daily turns amid ELD-enforced pres- sures. Shippers not only can guarantee capacity via the barge services but also decrease their transportation spend, as they cut 100 miles of highway trans- port in favor of cheaper river transport. Beyond helping shippers secure inland transport capacity, barge services are finding favor as ports look to relieve pressure on their terminals. New York City wants to develop a con- tainer terminal in Brooklyn served by barges, while federal grants totaling $1.15 million are driving two projects aimed at moving containers via barge from the Port of Davisville, Rhode Is- land, to the Port of New York and New Jersey. Every little bit helps. JOC Off-road thinking Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Barbara Wyker 908 507 4802, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Eric Johnson Technology 213 444 9326, Janet Nodar Breakbulk and Heavy Li 251 473 2742, Greg Knowler Europe +44 7976798770, Turloch Mooney Global Ports +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Web Editor: Joseph Lazzaro 917 309 0148, Data Analyst: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Executive Director, Editorial Content, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, The Journal of Commerce The Journal of Commerce (USPS 279 – 060), ISSN 1530-7557, September 17, 2018, Volume 19, Issue No. 19. The Journal of Commerce is published bi-weekly except the last week in December (printed 25 times per year) by JOC Group Inc., 450 West 33rd St., 5th Floor, New York, N.Y. 10001. Subscription price: $595 a year. Periodicals postage paid at New York, N.Y., and additional mailing offices. © All rights reserved. No portion of this publication may be copied or reprinted without written permission from the publisher. POSTMASTER: Please send address changes to The Journal of Commerce, Subscription Services Department, 450 West 33rd St., 5th Floor, New York, N.Y. 10001.

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