This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Intermodal shipping by rail remains a compelling value proposition, based on rail’s efficiency and reliable capacity. In recent years, the highway has seen meaningful swings from cycle to cycle that generate either too much or too little capacity for shippers. In turn, rates and service levels are more difficult to predict, which leads to supply chain uncertainty. Intermodal shipping by rail, on the other hand, offers a resilient product in terms of service and cost that shippers can count on year-round and through economic cycles.
On the international side, working in lockstep with our port connections is critical to the success of the supply chain. The ports CP serves, especially on the West Coast, are critical to the success of the supply chain.
At CP, we are seeing a shift in US-bound international containers toward the Port of Vancouver. We see a number of contributors to this trend, with these three playing a critical role:
- Comparatively consistent low on-dock dwell times at the port terminals;
- Direct, fast, and efficient rail connections from CP’s network to key markets;
- And an ability to grow capacity in future years thanks to land holdings and capital projects.
In speaking with our shippers, we believe these elements will be crucial to their success and important to their customers in 2020. CP is fortunate to have Vancouver as our West Coast gateway, and we are dedicated to growing CP’s intermodal rail business in close collaboration with the ocean terminals there.
It is a scenario that plays out in the East as well. The Port of Montreal is planning capacity for the future to ensure it remains the Atlantic gateway of choice for Canada and the US Midwest. We also see tremendous potential at Port Saint John.
There is a lot a railway cannot control. By controlling what we can, executing on the precision scheduled railroading model every day, and working in lockstep with our ports, we can best offer a compelling container transportation service.