At the foreground of industry discussion is the opening of the expanded Panama Canal, and the predicted shift in traditional trans-Pacific trade routes from west to east. Over the past decade, U.S. East Coast ports have prepared by investing in infrastructure and strengthening multimodal transportation solutions. Port Miami recently completed its 50-foot deep-water dredge and the installation of post-Panamax cranes to accommodate the vessels capable of hauling more than 10,000 twenty-foot-equivalent units that will traverse the expanded canal.
In addition, Port Miami is returning on-dock intermodal rail to its pier for seamless transfer of containers from ship to rail, and reverse. Other South Florida ports, for example, Port Everglades, have also created a faster track to market for shippers via rail connectivity through FECR’s Intermodal Container Transfer Facility adjacent to the port. With infrastructure enhancements, and intermodal rail transportation offering a reliable flow of goods, added capacity, and truck-like delivery speeds, partnerships such as the one between Florida East Coast Railway and South Florida ports will be key in handling the forecast growth from the canal’s new locks.
Remaining a significant issue in 2016 will be the ever-increasing truck driver shortage, predicted to reach nearly 50,000 by the end of 2015. With the major reasons being the high average age of the existing workforce, seemingly constant highway congestion, lifestyle requirement changes, and a steady unemployment decrease, the shortages are unlikely to disappear anytime soon.
We believe solutions such as converting over-the-road truckloads to rail are part of the answer. By shifting freight to rail transportation, motor carriers are able to better optimize their fleets to mitigate the shortage of qualified drivers, while also avoiding empty backhaul costs and congested highways. Looking forward, excellent connectivity and key partnerships between transportation providers across all modes will continue to be essential for seamless supply chain solutions.