What is the regional transportation situation in the U.S. this year?
Be it truck, rail, air or ocean--what are the specific problems?
By Staff -- Purchasing, 4/8/1999 2:00:00 AM
Rail problems still get the most mentions from buyers, according to Purchasing's focus survey this month. "Rail service via Union/Pacific has greatly improved over the past sixty days," says a buyer in Louisiana. While some buyers report much improved rail conditions, others are still experiencing problems. "We continue to have trouble with rail reliability," says a buyer in Florida. "Rail is still having some problems coming through the St. Louis exchange," adds another Louisiana buyer.
Shipping costs are a source of confusion among buyers. One buyer in Washington says: "It would seem we should see cheaper shipping, considering the reduced fuel prices now available." But data from Purchasing's Grass Roots Business Survey show the opposite occurring. Nationwide, the transportation price trend diffusion index is at 62, indicating the percentage of buyers reporting stable to higher pricing for transportation services. Regionally, inflation in transportation rates appears to be strongest in southern and eastern U.S.
Other buyers are experiencing typical shipping problems: lateness of deliveries, shipping companies' inabilities to correctly track shipments, and winter weather related air delays. Other buyers comment on more specific problems with trucking and ocean freight. "We have been having trouble with trucking companies--they don't have enough equipment to service us!" says a buyer in Texas. Regarding ocean shipping: "Vessel space from Asia (Taiwan and China) to U.S. (Long Beach) is tight," says a California buyer.
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