This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The global trade climate has presented unique challenges to the North American supply chain over the past year and will continue to shape the intermodal shipping industry in 2020.
The ongoing trade dispute between the United States and China has resulted in cargo lane shifts as businesses seek alternative import sources. While primarily affecting trans-Pacific trade lanes, these shifts have caused ripple effects across the entire intermodal network.
To mitigate the impact of the current global trade trends, intermodal chassis providers must have the ability to swiftly adapt to the evolving market demands.
TRAC’s ongoing fleet strategies have allowed us to prepare for and seamlessly adapt to the new trade environment. Since 2015, we have invested over $330 million in fleet modernization, including our BlueEdge chassis upgrade initiative. Through our inventory optimization with volume forecasting, proper fleet sizing, robust safety stock network, and maintenance and repair protocols, we have been able to ensure chassis availability despite often difficult and unpredictable market conditions over the past year.
Looking ahead, forecasting will remain a crucial component in chassis business operations, especially in the changing maritime environment. To ensure fleet readiness for the upcoming year, TRAC is compiling data and projections from key stakeholders, including shippers and ocean carrier customers.
In addition, the 2020 election will no doubt focus considerable attention on the state of the US economy and US trade relations. TRAC will work closely with our customers and partners, while keeping a watchful eye on macroeconomic developments that could affect overall container volume and ports of entry.