Rail News

Norfolk Southern Railway insists that no matter how far truck rates fall, it will not chase the market down by providing unsustainable rates to shippers, but rather focus on innovative ideas such as mixed trains.

A new international distribution center in Houston blends US trucking and containerized imports as less-than-truckload carrier Averitt reaches deeper into US consumer markets.

North American intermodal volume may plunge as much as 25 percent in the second quarter, so railroads believe the right strategy is to focus on cost-cutting while providing reliable service.

Even in a situation as bad as the COVID-19 lockdown, there may be opportunity for domestic intermodal if the US Class I railroads can seize it — as they did following the Great Recession.

Intermodal volume last week was the weakest in a nearly a decade as the coronavirus disease (COVID-19) has wreaked havoc on the railroads, which an industry analyst believes could cost Class I railroads $9 billion dollars.

With much of the air freight capacity limited on routes to and from China, and more than 30 percent of the ocean capacity canceled, shippers are making greater use of rail services amid pandemic-related supply chain disruptions.

Alameda Corridor Transportation Authority this year will feel the declining revenue effects of the economic recession projected to impact Los Angeles and Long Beach and all North American ports.

Although the economy had a fairly good head of steam coming into the crisis, its heavy reliance on the consumer will make it particularly vulnerable to the pullback in consumer spending that will result from the changes wrought by the coronavirus.

With much of the ocean capacity withdrawn on the Asia–Europe trades, rail capacity is being quickly filled with Chinese export cargo as factories in China get back to work following coronavirus-related closures.

Domestic intermodal volumes rose in January year on year, but there is little else for intermodal marketing companies (IMCs) to feel good about right now.

The developer of a Texas industrial park scheduled to open in early 2021 says it will work with Kansas City Southern of Mexico to offer a shorter, cheaper way for Mexican manufacturers to ship goods to Houston and other Texas markets.

Non-asset intermodal providers want railroads to be more lenient on container charges and late fees when bidding for shipper business in order to become more competitive with the likes of J.B. Hunt Transport Services.

Railroads are more conciliatory in negotiating contract rates than a year ago, hungry to recapture freight lost to trucking. One logistics executive called the railroads’ stance “a complete 180 from last year.”

Just-in-time inventory pressures are creating more less-than-truckload shipments, giving Canadian National and Canadian Pacific Railway an opportunity to accelerate their domestic intermodal volume growth.

There are no positives to be found in the Intermodal Association of North America’s latest market report, which shows year-over-year volume fell 7.4 percent in the fourth quarter of 2019 and 4.1 percent for the full year, with declines in all types of containers.

Amid weak intermodal volumes in 2019, the JOC Domestic Intermodal Savings Index shows spot and contract savings are lower than historical averages, although the year closed stronger for shipper savings on the spot market.

A rush to secure space on trains leaving China could be looming amid coronavirus-related disruptions to air and ocean schedules. Shippers have been advised to plan capacity early.

Railroads and intermodal providers say there will be more volume in 2020 than last year, although shipper demand will not fully recover until the second half of this year.

Union Pacific Railroad will resume service on nearly 60 previously eliminated lanes beginning Feb. 1, a move it linked to its precision scheduled railroading operation, but others said was designed to win back lost market share.

Despite stiff truck competition, East Coast ports have taken aggressive steps to capture more intermodal cargo and spend significant capital to build out rail infrastructure.

The migration of North American import cargo from west to east has been accelerating, a trend that could have negative implications for Inland Point Intermodal (IPI).

Despite Mexico’s sluggish economy, the intermodal sector could see benefits in 2020 from the expected implementation of the United States Mexico Canada Agreement and new rail services.

Touting it as a game-changing move, Indian Railways has opened consultations with stakeholders to introduce double-stack “dwarf container” train operations at Jawaharlal Nehru Port Trust in a bid to better compete with over-the-road haulers.

The intermodal picture at the start of 2020 is lackluster because the trucking market isn’t on the verge of a major rebound unless there is an economic catalyst.

The country's government is looking to improve cargo fluidity at key seaports and border crossings — and reduce traffic on congested roads — via increased use of intermodal rail and a new marine highway program.

Union Pacific Railroad has been suffering technical issues with its gates at Chicago’s Global 4 terminal, causing major congestion and delays in cargo deliveries.

After an unprecedented volume decline in 2019, continued excess trucking capacity, further transitioning to precisions scheduled railroading, and slowing economic growth portends another difficult year for the US intermodal market.

US intermodal, particularly domestic volume, has a tough road ahead given low spot truckload rates that will continue to push freight to the highway, but the sector could see some improvement in the second half.

As volumes on the China–Europe rail route continue to grow, stakeholders are looking at ways to make the network more efficient, as well as potential reforms to the system of subsidies that fund operations.

Chronic cross-border trucking delays serve as a reminder of how fragile the freight connection between the United States and its largest trading partner continues to be.

Going into 2020, chassis providers in the US are hopeful that fleet upgrades over the last two years have made the network more resilient, while also acknowledging that there is still little they can do to absorb sudden, unanticipated spikes in cargo.

With economic growth expected to slow and relations between the United States and its largest trading partners still in flux, cargo owners are expecting low but sustained demand and increased pricing pressure in the coming year.

The JOC.com editorial team has identified 10 trends every shipper, carrier, and third-party logistics provider should be watching in the upcoming year.

Traffic problems that slowed trucks in BNSF’s Lot 16 outside of Chicago have been resolved through a partnership between the railroad and an Intermodal Cartage-owned yard operator.

Brokers with digital freight marketplaces continue to partner with widely used TMS providers to give users of those systems direct access to electronic capacity and booking capabilities, while the marketplaces get an influx of direct shippers customers.

The Port of Baltimore has moved a step closer to sending double-stacked trains to the Midwest through the Howard Street Tunnel, securing the last portion of the $466 million needed to fund the project.

Shippers looking to move cargo through Central New York State now have the option of using a new inland port opened by CSX Transportation in Syracuse.

Despite the lifting of Russian sanctions on the transit of agricultural products through its territory, some big issues stand in the way of rising volume.

The bluster of trade war rhetoric continues on both sides of the Pacific as a Phase One deal is hammered out. Until then, look to the intermodal system to show the truth on the movement of trade.

If the heavy support of subsidies from China was withdrawn quickly, it is likely only higher-value products would be viable on the China-Europe rail network.