Rail News

Insufficient volumes, including on the lane between the Port of Virginia and Memphis, have forced the railroad to reallocate resources to areas where it believes container business will grow in the future.

The companies say it is important to be agile with capacity deployment if there is a significant decline in volumes crossing the docks at Los Angeles and Long Beach amid the trade conflict with China.

But the largest US intermodal provider said customers have not yet meaningfully adjusted their freight forecasts, and shippers continue to tender the quantity of loads outlined in their contracts.

US tariffs are forcing shippers in Mexico to rethink global sourcing and logistics strategies as complying with the USMCA becomes more complex.

Cargo theft in trucking and on the rails has been a problem for years, but it’s getting harder to combat as criminals become more sophisticated in their tactics.

Inclement weather, the lingering effects of labor disruptions and a January surge in imports contributed to the fifth consecutive month of excessive rail dwells at Canada’s largest port.

Damage from last fall’s Hurricane Helene continues to affect CSX’s operations in the Southeast, while the fast-tracking of construction work at Baltimore’s Howard Street Tunnel provides another challenge.

The expedited service will require terminals within the Northwest Seaport Alliance to load rail-bound trains within 48 hours of vessel arrival, significantly faster than the average dwell times of eight to 15 days experienced last year during a surge in container volumes.

The terminal operator says buying the railroad that connects ports on the canal’s Pacific and Atlantic sides fits into its overall strategy of offering more services to shippers.

The initiative, called RailGreen, will allow intermodal customers to purchase verified carbon certificates reflecting their use of lower-emission freight options.

The deal comes as the world’s largest container shipping company looks to establish a bigger foothold in surface transportation.

The port authority on Wednesday completed an expansion of Inland Port Greer ahead of the opening of the near-dock Navy Base Intermodal Facility (NBIF) at the Port of Charleston later this year.

Despite the month-over-month downturn, Los Angeles-Long Beach volumes were higher than a year ago as Southern California’s freight boom did not begin until the second quarter of last year.

Groups representing transportation providers, retailers and manufacturers are calling for Congress to create a cargo theft task force blending the resources of multiple agencies as cargo crime spreads.

Executives from CSX and Norfolk Southern say that while the market is no longer as strongly pro-shipper as it was a year ago, conditions have yet to shift in favor of rail carriers.

Reshuffling port calls because of a potential Trump administration fee on Chinese-built and -operated ships would place additional strain on the US intermodal supply chain, railroad executives say.

Domestic intermodal’s share of the US long-haul truck market has risen over the past two quarters, although that resiliency is going to be tested in the months to come, writes analyst Larry Gross.

The visibility market has bifurcated into standalone vendors too small to be captured by Gartner’s “Magic Quadrant” report and larger vendors whose platforms extend far beyond what the report evaluates.

Across all the terminals in Los Angeles and Long Beach, average rail dwell times peaked at just under 10 days in October, according to the Pacific Maritime Shipping Association.

Kate Farmer told TPM25 that people would be “shocked” at how much money the oft-targeted railroad spends on combating the increasingly sophisticated methods of cargo theft.

The Barstow International Gateway (BIG) could cut transit times on international intermodal business and increase the resiliency of Southern California ports during freight surges, BNSF CEO Kate Farmer said.

Tariff concerns and fears of labor unrest helped grow volumes at key ports along the West Coast last month, with the gains coming at the expense of the Northeast and mid-Atlantic.

The latest Journal of Commerce Intermodal Service Scorecard shows how the performance of North American Class I railroads suffered due to congestion caused by high cargo volumes in Southern California and severe weather in the Southeast.

While trucking companies and intermodal carriers believe contract rates will rise this summer, shippers are skeptical given past predictions that have fallen by the wayside.

While tariffs and the trade wars that could result are indeed a serious matter, the direct effects of potential US tariffs on Canada and Mexico on the North American intermodal market would be “relatively minor,” writes Larry Gross.

The ocean carrier is diving into domestic intermodal logistics for shippers sending freight from inland markets to the West Coast.

In terms of raw dollars, intermodal shippers saved an average of $741 per container versus truckload for spot market transactions across the 120 lanes in the Journal of Commerce Intermodal Savings Index, up from $649 one year ago.

A spokesperson for NS says requiring truckers to have appointments to pick up containers at the Chicago facility allows for “stack grooming,” meaning it gives the railroad information in advance on which boxes to make available.

The planned development in Eastern Canada marks the latest stage in a nearly two-year-old partnership between the company and the Class I railroad.

The effort coincides with UP’s plans to open a new terminal in Kansas City, Kansas, in the third quarter of this year that would alleviate pressure on the railroad’s existing terminal across the border in Missouri.

The former Wisconsin congressman and Fox Business host was confirmed by a 77-22 vote on Tuesday.

The largest intermodal provider in the US says it’s time for shippers to talk about higher rates for service but understands the shift is not likely to occur until the second half of the year.

The Barstow International Gateway will be a transloading hub where the contents of ocean containers come to be transferred into 53-foot domestic containers to travel inland, ensuring quicker turnarounds of ocean boxes moving back to the ports of Los Angeles and Long Beach.

Projections for North American intermodal will likely be upended by some “black swan” event that isn’t even on the radar right now as there seems to be no shortage of potential hot spots and disruptors looming, writes Larry Gross.

Domestic intermodal providers are frustrated that they’ve been unable to win significant rate increases in contracts in early 2025, but capacity in trucking and rail is still abundant and easy to procure.

A confluence of factors, including vessel bunching at Asian load ports and a pre-Lunar New Year cargo surge, have combined to cause congestion at the port and reduce its railcar availability.

It’s important for railroads to prevent export containers from clogging their terminals because domestic and international intermodal cargo share terminal space.

Despite the kudos for railroads, some market players question the value of pandemic-era comparisons, suggesting that 2024’s peak season aligns more closely with pre-pandemic trends.

It’s difficult to imagine international intermodal growing much more, if at all, on the US West Coast in 2025.

The considerable intermodal ocean volumes that ordinarily would have moved in 2025 have likely been pulled forward into 2024, writes analyst Larry Gross.