From a logistics perspective, we’re seeing some positive trends in North America and are optimistic that these will continue in 2015. Notable, growth in the regional automotive sector has been impressive and we continue to see more original equipment manufacturers announce intentions to expand their manufacturing presence in Mexico. In fact, Mexico is positioned to become the No. 1 source of imported cars in the U.S. next year.
For logistics companies, this means opportunities to strengthen partnerships with OEMs and tiered suppliers. These opportunities will range from truck and train cross-border traffic through strategic ports such as Laredo, Texas, to integrated logistics support such as kitting, sequencing and just-in-time service.
As much as the automotive sector appears to be a bright spot, the upcoming year is not without logistical obstacles. Chassis shortages and larger vessels are just two factors that exacerbated congestion along the U.S. West Coast throughout peak-season 2014, and we do not expect these issues to go away any time soon. The ripple effect in service caused by this congestion will have shippers seeking new alternatives to routing and mode selection. In 2015, we expect shippers to place an ever-increased emphasis on having an agile and flexible logistics network.
Of course, the challenges don’t stop at the port. Inland, we are facing a crumbling highway infrastructure coupled with an ongoing driver shortage. Predictably, this means continued growth in the intermodal sector. In 2015, we’re going to see ongoing investments in rail infrastructure as well as improvements to rail-ramp efficiencies as intermodal providers continue to enhance their service levels to be competitive with traditional over-the-road truckload.
Overall, we remain optimistic about 2015 because as third-party logistics providers, companies such as ours have the capacity and expertise to help customers through supply chain challenges.
Kunihiko Miyoshi, President and CEO, Yusen Logistics