Shippers and the freight transportation industry have reason to be cautiously optimistic that volumes will grow into 2022. Kansas City Southern anticipates continued growth in cross-border trade throughout North America with the adoption of the United States–Mexico–Canada Agreement (USMCA).
The key headwinds to watch are inflationary pressure, supply chain disruptions, and labor shortages; however, demand is strong and inventories are low, which should continue to support industrial production and freight volumes.
As higher inflation impacts the supply chain, shippers can benefit from exploring the value of rail transportation compared with trucking in terms of price and capacity. Rail plays an essential role in the North American supply chain, providing safe, efficient, and reliable service. Shippers also reduce their total carbon footprint when shipping by rail, as rail is the most fuel-efficient form of ground transportation.
Like others in the supply chain, Kansas City Southern is committed to providing exceptional service to shippers and doing our part to alleviate supply chain bottlenecks. We have invested in capacity, particularly along our high-density cross-border corridor, and put sustainable process improvements in place that have helped improve performance and customer service metrics over the past year.
Shippers and transportation providers alike can win in our respective markets when we partner to add capacity and continuously improve processes to move freight more safely and efficiently.