There's so much overcapacity in the shipping industry that companies are having a hard time making money. In response, the shippers aren't ordering new oil tankers or freight haulers. Costas Paris writes for The Wall Street Journal: Ship orders world-wide have shrunk to the lowest level in 15 years as vessel owners struggle with excess capacity that has kept freight rates well below break-even levels. There were 3,200 vessels of a combined 81 million gross tons ordered globally in the first quarter, the lowest figure since 2004, marine data provider Clarksons PLC said in a report released … [Read more...]

In The Wall Street Journal, Robert Wall details a major purchase of Boeing 777-9 jetliners by British Air (International Consolidated Airlines Group). BA will replace its fleet of aging 747s with the new jets. Wall writes: International Consolidated Airlines Group , ICAGY -1.79% as IAG is formally known, said it would place a firm order for 18 Boeing 777-9s and take options for up to 24 more. The deal has a combined value of $18.5 billion at list price before industry standard discounts. The jetliners will eventually replace BA’s aging 747 jumbo jets in another sign twin-engine long-range … [Read more...]

Small retailers have faced heavy competition from Amazon as the big company has raced to dominate e-commerce. One of the greatest advantages Amazon has had over competitors is its logistical efficiency, quickly moving products to customers before competitors are able. That might be changing though, as FedEx has announced a new program that will allow smaller retailers to directly compete with Amazon on delivery speeds. Bloomberg's Thomas Black reports on the new program, writing: FedEx sees potential profit in the competitive pressure online stores face in keeping up with Amazon’s drive to … [Read more...]

Every old sci-fi cartoon and film seems to be filled with flying cars, whisking characters quickly and efficiently beyond any ground-level impediments directly to their destination. While such vehicles have always seemed just out of reach, that hasn't stopped entrepreneurs and big corporations from pursuing the idea of "flying cars." Now, Boeing, the pioneering aerospace mega-corporation, is building something that could come close to delivering on the promise of the flying car. Bloomberg's Anurag Kotoky and Julie Johnsson report: A Boeing Co. flying car designed to whisk passengers … [Read more...]

Hydrogen has been held up as the Holy Grail of energy sources many times. It's rapid refill capability and long-range, coupled with its zero-emissions at point of use gives it the best of the attributes of fossil fuels and electricity. Now the Ports of Auckland in New Zealand are attempting to go "no emission" by adopting hydrogen as the fuel source of choice. Marcus Hand reports for Seatrade Maritime News: New Zealand’s Ports of Auckland is aiming for zero emissions by 2040 and is looking to hydrogen power as an alternative to batteries to power terminal equipment. As it targets … [Read more...]

After months of record breaking growth, heavy duty truck orders have slowed down in November. The freight market is slowing down in tandem. Erica Phillips reports for The Wall Street Journal: Orders for heavy-duty trucks declined in November for the first time this year, falling to the lowest level in 14 months and providing a fresh sign the North American trucking market is cooling down. Trucking companies last month ordered 27,900 new Class 8 trucks, the heavy-duty rigs used on regional and long-haul routes, according to a preliminary estimate from industry data provider ACT Research. … [Read more...]

With Amazon creating its own network of delivery services around the country, you may think FedEx CEO Fred Smith would be worried, but according to him, he's not. Smith thinks that rather than FedEx being hurt, the Postal Service is more likely to take a hit. Bloomberg reports: FedEx Corp. Chief Executive Officer Fred Smith isn’t sweating Amazon.com Inc.’s move to expand its own delivery network, saying the e-commerce giant is likely to take more business from the post office than the package courier. “Amazon is a good customer. We think they’ll be a bigger customer in years to come if … [Read more...]

Stocks of companies in the transportation sector have gone from record highs in mid-September to down more than 10%. The Dow Theory holds, more or less, that the overall market will follow along behind Transports. That's not a great sign for investors. Akane Otani writes in The Wall Street Journal: The transports had rallied this summer and hit a record in mid-September, buoyed by strong economic data, as well as increased demand for freight services among retailers and consumers. But the sector has been caught in the broader-market slide, pulling the Dow Jones Transportation Average—which … [Read more...]

In an attempt to keep up with the booming economy, Union Pacific is stealing some ideas from the late railroad pioneer, Hunter Harrison. Harrison transformed both major Canadian railroads and CSX before he passed away last year. Now Union Pacific, desperate to keep up with the booming economy by clearing backlogs on its rails is attempting to replicate Harrison's successful methods. Paul Ziobro reports at The Wall Street Journal: Union Pacific Corp. UNP +0.27% never hired Hunter Harrison to run its sprawling network. But with congestion clogging its system, the company is now adopting the … [Read more...]

Is hydrogen power the next evolution of railroading? In Germany, hydrogen powered locomotives are taking to the rails . Stanley Reed reports in The New York Times: In a breakthrough for a green fuel, two hydrogen-powered trains are expected to go into commercial service Monday on a rail line in northern Germany near Hamburg. The trains, which will serve cities including Bremerhaven and Cuxhaven, will be powered by hydrogen fuel cells that generate electricity through a chemical reaction. The trains are being promoted as a cheaper alternative to stringing wires on rail lines that are not … [Read more...]