Rail News

The port is struggling to relieve excessive rail container dwells on its docks caused by an unexpected jump in imports and what some stakeholders say is an inadequate supply of railcars.

The global forwarder is up for sale, and its high level of profitability during an otherwise challenging year for logistics could improve a selling price that analysts have already said could top $20 billion.

The railroads say they are deploying more intermodal railcars to Los Angeles-Long Beach and adjusting their operations so marine terminals can clear out rail containers and reduce dwell times following strong import volumes early this year.

The railroad believes requiring appointments and grounding containers into stacks will improve the flow of trucks through its terminal outside Atlanta.

The port operator has grown its global forwarding footprint to 100 offices, using its network of terminals, warehouses, road and rail to provide greater visibility and control of shipments.

While there is strong communication between motor carriers and railroads in the domestic intermodal market, those links don’t yet exist between railroads and international shippers.

If the Southern California inland point intermodal surge continues into the “danger zone,” then importers might do well to consider taking advantage of alternate routings in the Pacific Northwest and Western Canada, says analyst Larry Gross.

Resolving the free time clock question to bring inland port moves in line with rail moves to major US cities could unleash even more business and take additional trucks off the highway.

Drivers arriving at the Landers terminal have complained about multi-hour delays picking up import containers over the past four months, causing shippers to wait longer for their cargo.

TRAC Intermodal is investing in its fleet and positioning equipment in inland markets that saw the worst chassis shortages in 2021 and 2022, CEO Daniel Walsh told TPM24.

Although the port is losing some intermodal service to the Midwest, demand is surging to core inland cities within the Southeast US.

The railroads say more vessels calling Houston translates into heavier volumes that will help intermodal services from the port gain traction this time.

Simpson will become the first woman to take the top job at J.B. Hunt, something many in the industry expected to happen after she was named president 18 months ago.

The railroad told shareholders in a lengthy proxy statement that CEO Alan Shaw is on the right path and urged investors to trust in his vision for the company rather than vote to replace him.

While the two companies have a partnership dating back 35 years, the latest transaction strengthens the relationship between the largest intermodal provider in North America and one of the continent’s top intermodal shippers.

Railroad officials informed Georgia and South Carolina port authorities earlier this week, giving them a one-month notice that service will no longer be offered to Chicago, Cincinnati and Louisville.

In addition to pushing for a leadership change, Ancora Holdings also said NS should not invest so heavily in intermodal under its current strategy and criticized the railroad for changing 180 train schedules last year to prioritize container and trailer business.

Shippers will have another domestic intermodal option between Mexico and the US as cross-border intermodal growth outpaces the overall North American market.

The first shipments of hay were loaded into Evergreen containers at the inland hub and moved by Union Pacific to the Pierce County Terminal in Tacoma for shipment to China.

The long-awaited decision also seemingly puts to rest the question as to whether the FMC has authority on issues that extend beyond US ports.

The failure of Mexican customs clearance systems at a national level this week snarled supply chains and may warn of future problems as US-Mexico trade grows. 

The Port of Mobile is looking to boost intrastate rail service with a new intermodal ramp that would give shippers an alternative to using rail from major Southeast ports.

The average cost savings for a shipper choosing intermodal rail over truckload was consistent during 2023 and should be relatively unchanged at least through the first quarter, according to the latest Journal of Commerce Intermodal Savings Index.

North American intermodal functions mainly as a set of regional networks defined by railroad route structures, one of the handicaps for intermodal as it competes against a “go-anywhere” national truck system, writes analyst Larry Gross.

The railroad is eliminating or adjusting service in four cities this month in a move to shift resources to corridors where it believes freight will surge over the next decade.

Domestic intermodal providers have stacked thousands of containers and are warning they will keep capacity out of circulation even when demand picks up unless shippers are willing to pay higher rates.

While down significantly from 2022, the forwarder remained profitable last year as fourth-quarter gains helped dull the full-year impact of sharply correcting global freight markets.

North American railroads and truckload companies are hopeful rates and demand will rise this year but say there’s too much uncertainty in the market to offer a confident forecast.

An ongoing pay dispute between a German rail workers’ union will see train drivers, signalers and dispatchers embarking on a strike that will have regional ramifications.

Neither J. B. Hunt nor its shippers anticipated a 6% rise in intermodal volumes in the fourth quarter, but it’s unlikely that will drive higher contract rates in early 2024.

While the available capacity offered by air and rail is nowhere near that of ocean, the modes give cargo owners an alternative transport option for their more urgent shipments.

IPI growth could accelerate if external events such as longshore contract negotiations on the East and Gulf coasts or further restrictions on vessels transiting the Panama Canal prompt a significant shift in import volumes to the West Coast.

The Journal of Commerce’s biannual Intermodal Service Scorecard found customers were more satisfied with their domestic intermodal service in the second half of 2023 even as railroads handled more containers in the back half of the year.

While companies that use the crossing at Eagle Pass are seeking to reassure existing and potential customers, competitors using Laredo, where no closures have occurred, are wasting no opportunity to talk up that route’s relative reliability.

Although the 2023 peak season was more muted than during the COVID-19 pandemic, the overall decline was not as severe as some feared.

Lower consumer demand for imports and domestic goods reshaped international and US freight markets in 2023.

The move comes after several days of pressure from shipper groups who expressed concerns over the economic impact of the closures so close to Christmas.

With CPKC competitors BNSF and UP unable to send or receive cargo because of the border closures at El Paso and Eagle Pass, they might be tempted to send containers through CPKC’s still-opened Laredo crossing.

Intermodal marketing companies told the Journal of Commerce they are concerned about their ability to sell rail options to shippers if there is a prolonged closure at Eagle Pass and El Paso.

A strong Black Friday and Cyber Monday, coupled with rosy sales expectations, are spurring US retailers to boost their import forecasts for early 2024, according to the National Retail Federation.