John Lanigan to retire from top marketing post at BNSF Railway
Steve Bobb, head of coal commercial business, will replace Lanigan, one of the railroad's most important non-operations executives during the last decade.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Burlington Northern Santa Fe (BNSF) Railway last night announced major changes to its marketing and business
development structure as John Lanigan, who has run BNSF's sales, marketing, and business development for a decade,
announced his retirement. He will be succeeded by Steve Bobb, currently in charge of the commercial functions of
the railroad's coal business group.
Lanigan will retire on Jan. 15, leaving almost 10 years to the day that he joined Fort Worth, Texas-based BNSF.
Lanigan joined BNSF after the company he ran, Logistics.com, was acquired by Manhattan Associates. He was
arguably the railroad's most important non-operations executive, heading its sales, marketing, customer service,
economic development, and business unit activities.
Lanigan's tenure at BNSF has been marked by a rail industry resurgence that effectively began in 2004 and
continues to this day. Carl Ice, BNSF's president and chief operating officer, said in a statement that BNSF's annual revenue more than doubled during Lanigan's tenure, with the company on track to hit $20 billion in 2012.
"[Lanigan has been] instrumental in helping grow BNSF into the leading transportation company we see today," Ice said.
But the highlight of his time there was the 2009 takeover of BNSF by Berkshire Hathaway Inc., the conglomerate controlled by
billionaire Warren E. Buffett. Berkshire spent $26 billion to buy the 78 percent of BNSF it that didn't already own.
The purchase, which took the railroad private, was the biggest deal in Berkshire's history and one of the most important
transactions of the past 10 years.
In an interview with DC Velocity earlier this year
for the annual July "Rainmakers" issue, Lanigan said the railroad hasn't changed its way of doing business since going
private. He added that none of BNSF's four main operating units would in 2013 return to the peak traffic levels of
2005–2006 because of the slow and protracted U.S. economic recovery.
In the interview, Lanigan said the rail industry's biggest challenge will be synchronizing data flows between
all the nodes of increasingly globalized and complex supply chains. "In a growing global economy, the use of
multiple transportation modes has become the norm. When you think about how many touch points there can be on
a single shipment, one miscue can result in an unsatisfied customer," he said.
CHANGES IN THE COAL BUSINESS
Lanigan's replacement, Bobb, will leave his current job at BNSF's coal business group as the rail industry struggles through its most difficult period for coal transportation in decades. Slowing macro demand, unseasonably warm winter weather, and increased competition from low-cost natural gas have hammered coal volumes at all the railroads. In spite of these trends, coal still
remains by far the industry's biggest commodity in terms of carloadings.
Through the end of October, coal carloadings were down 10.2 percent from the same period a year ago,
according to data released yesterday by the trade group the Association of American Railroads. (AAR). In
the week ending Oct. 27, coal loadings were down 15.2 percent from the year-earlier period, AAR said.
Bobb, in turn, will be replaced by Steve Branscum, who as head of BNSF's consumer products division has
run the commercial activities of the intermodal and automotive businesses. Branscum, who has held his current
post since 1999, will be succeeded by Katie Farmer, who has been vice president, domestic intermodal, since 2010.
Branscum will tackle the tough coal business after riding the railroad's strong growth in intermodal volumes, as we
as a recovery in the auto industry that benefits car-haulers like BNSF.
Branscum has been a key player in BNSF's aggressive push to convert millions of truckloads moving west
of the Mississippi to intermodal. Like other railroads, BNSF is trying to sell the marketplace on the benefits
of intermodal transportation over truckload services. BNSF argues that intermodal is less costly and more
fuel-efficient than truckload even for relatively shorter hauls. "We have an opportunity, and the opportunity
is huge," Branscum told DC Velocity in an interview last June.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."