In the dynamic and ever-evolving world of logistics, Rohit Laila stands out with decades of experience spanning supply chain management and delivery. His passion for technology and innovation fuels his insights into the industry’s current trends and future outlooks. In this conversation, Rohit shares his views on intermodal demand, trade impacts, and strategic directions in the logistics sector.
Can you share your thoughts on the current state of intermodal demand and why you feel “a bit more optimistic” now compared to earlier this year?
Intermodal demand is gaining some optimism as we begin to see a return to more predictable patterns. Earlier this year, there was a lot of uncertainty due to the trade war and fluctuating economic indicators. However, the resilience and adaptability of intermodal services, paired with strategic logistics planning, are creating a more stable environment, which makes me cautiously optimistic about upcoming trends.
How has the trade war impacted your operations, and why do you believe the worst-case scenarios are now unlikely?
The trade war initially led to a lot of unpredictability, causing concerns over tariffs and supply chain disruptions. But as we’ve navigated these challenges, operations have adapted well. The worst-case scenarios seem unlikely now due to mitigation strategies like diversified sourcing and improved trade agreements that have softened the potential blow.
What trends are you seeing in terms of seasonal demand, and how are they affecting your business?
We are noticing a resurgence in seasonal demand, although it’s not fully back to pre-pandemic norms. This shift is influencing inventory management and logistics strategies as businesses gear up for peak seasons, resulting in a need for agile supply chain solutions to meet customer expectations efficiently.
Can you elaborate on the volume weakness on the West Coast? How are imports from China influencing this?
Volume weakness on the West Coast is partly a result of the ebb and flow of imports from China. Changes in Chinese manufacturing and export strategies are affecting how goods move into the U.S. This, in turn, impacts logistics planning and requires a shift focus to accommodate areas with stronger and steadier import volumes.
How are you compensating for the volume weakness with strength in intermodal lanes out of Mexico and the Midwest?
We are leveraging the strong intermodal connections from Mexico and the Midwest to offset the West Coast volume dips. These areas are thriving due to robust manufacturing outputs and reliable demand, allowing us to redirect resources and optimize our network for efficiency and capacity balancing.
What is your outlook on customer demand in light of the upcoming end of the tariff pause between the U.S. and China?
With the tariff pause nearing its end, I expect a mix of cautious optimism and strategic caution from customers. Businesses are likely to push for inventory replenishment before the tariffs are reinstated. This anticipated demand spike calls for strategic planning and robust logistics measures to manage potential surges.
How is the demand for your intermodal services on the Canadian Pacific Kansas City line influencing your growth expectations?
Our intermodal services on the Canadian Pacific Kansas City line are a key growth driver, as they provide direct connections that streamline logistics and reduce transit times. The demand is contributing positively to our growth expectations by expanding our network’s reach and improving service offerings for our customers.
Could you explain how tariff-induced air pockets in demand are being managed throughout your network?
Managing these fluctuations involves constant network adaptation and resource realignment. By maintaining flexibility in our operations and collaboratively planning with clients, we can effectively smooth out demand variances, ensuring that our services remain reliable regardless of external pressures.
What strategies are you employing to maintain and slightly increase intermodal contact pricing this bid season?
We’ve focused on closely collaborating with our customers to understand their needs. This relationship-building approach allows us to offer tailored solutions that justify value and enable us to keep pricing competitive while ensuring service quality and customer satisfaction.
How are constructive conversations with customers helping you navigate expectations around tightening in the truckload market?
Open and constructive dialogue with our customers is essential. Through these interactions, we gain insights into market expectations and can align our services accordingly. This helps us adjust to potential market tightening by proactively managing capacity and aligning pricing structures.
What has been the general sentiment in the market compared to what you are experiencing, and how stable is intermodal demand currently?
Market sentiment is gradually stabilizing; however, there are still underlying uncertainties. Compared to earlier fluctuations, we are experiencing more consistency as businesses adapt to the current economic landscape, resulting in a more reliably steady intermodal demand.
What are your predictions for the upcoming peak season?
The upcoming peak season is set to be active. I anticipate an emphasis on agility and scalability as businesses rush to meet holiday demands. There’s potential for increased demand in key lanes, meaning robust planning and execution will be crucial for optimizing supply chain performance.
