Rail & Intermodal

Kansas City Southern Railway is talking with ocean carriers and beneficial cargo owners about diverting shipments bound for the U.S. Gulf region away from congestion-wracked Los Angeles-Long Beach to the Port of Lazaro Cardenas in south-central Mexico.

Eurotunnel carried 6 percent more trucks and 9 percent more freight trains on its subsea rail tunnel between the U.K. and France in the third quarter compared to a year ago, with volume increases driven by the stronger British economy.

Western Pennsylvania intermodal shippers will soon get better access to CSX Transportation’s network when the railroad opens a Pittsburgh terminal, allowing it to better compete with its archrival, Norfolk Southern Railway, in the market.

Port congestion in Southern California is driving cargo to third-party logistics providers that have access to capacity from ocean and overland carriers, and the information technology systems to link these services together in an end-to-end supply chain solution, according to a 3PL executive.

U.S. shippers should expect higher intermodal rates in the coming year but not necessarily better service, two analysts said at the JOC Group’s 4th annual Inland Distribution Conference.

Norfolk Southern Railway said it is working to correct service problems that accompanies faster-than-expected 10 percent growth in intermodal volume during the third quarter.

CN train
Canadian National Railway said today that congestion at the Los Angeles-Long Beach port complex could cause U.S. shippers to divert cargo to western Canadian ports in three weeks, giving the railroad more intermodal business.

Canadian Pacific Railway CEO E. Hunter Harrison yesterday struck back at critics of potential rail industry consolidation, saying U.S. regulators could approve a merger and service would improve as a result.

Canadian Pacific
Canadian Pacific Railway’s domestic intermodal push keeps gaining steam, with volume jumping 19 percent year-over-year in the third quarter and demand sometimes even exceeding the railroad’s capacity.

A container terminal in Sydney, Nova Scotia, in eastern Canada is unlikely to be built because of poor rail connections and a slow recovery in container shipping, a prominent Canada shipping authority said this week.