Intermodal providers

Intermodal providers say they are struggling to bring 53-foot containers into UP’s terminals in Chicago and nearby Joliet, causing delays of several days to move cargo to the West Coast.

The combined railroad has an opportunity to divert more than 64,000 truck shipments to intermodal rail, according to S&P Global, but that’s only the crest of a wave of US imports from Mexico. 

Chassis providers believe the equipment shortages that bogged down inland supply chains in 2021 and 2022 will soon no longer be an issue for shippers, allowing the industry to return to a more typical supply/demand balance.

It stands to reason that the more miles one spends on low-cost rail, the better the comparative economics versus truck should be, but that’s not what happens in the real world, writes analyst Larry Gross.

Trucking and intermodal providers are offering discounts to secure freight in Southern California, where volumes are declining as imports from Asia fall.

Transloading is gaining popularity even as US imports have cooled in recent months, but shippers should weigh the pros and cons of transferring ocean containers into domestic boxes, TPM23 attendees were told.

The policy — known informally as the “no cherry picking” rule — prohibited trucking companies from coming into terminals with private chassis when there were no pool chassis available.

Volume declines are forcing intermodal providers to stack containers, unable to find cargo to fill the boxes because shippers have too much inventory, while trucking prices are so low that the freight is moving on highways.

With just under $50 billion in fresh investments unveiled last year for electric vehicle manufacturing plants in North America, ports in the Southeast and along the Gulf Coast are expecting additional volumes to soon be moving across their docks.

Official data shows overall volumes on the China-Europe rail network rose 6 percent last year over the then-record throughput handled in 2021, but there is no distinction between cargo destined for Europe or Russia.

Union Pacific is changing operations at its terminal outside Chicago in a bid to prevent future disruption by creating stacks for containers arriving from California, a move that will affect tens of thousands of ocean boxes per month.

WiseTech Global is doubling down on its reach into US intermodal networks with its $414 million purchase of Blume Global three weeks after acquiring drayage tech provider Envase.

Long-haul rail freight in Europe, the main alternative to road transport, is being undermined as the cost of electricity far outstrips diesel, say combined transport stakeholders.

Shippers saved less than in prior quarters on their intermodal contracts to close 2022, setting up a race to the bottom this year to keep freight on the rails.

Norfolk Southern’s plan to bring more capacity to its international intermodal business this year has kicked off with new cranes enabling the stacking of marine containers at its Austell ramp in Georgia.

The approximately 72-hour repair on a bridge in New Mexico would appear to mitigate what could potentially have been a major disruption for UP’s international and domestic intermodal shippers.

Some Virginia state legislators are looking to fund a second inland port, but the project’s prospects hinge on railroad and shipper demand, according to a study.

An outage involving a bridge in New Mexico in the heart of Union Pacific’s network is causing major delays for intermodal and automotive shippers between Southern California and two major inland hubs.

The Class I railroad vowed it would focus on providing better service to shippers in 2023 and move to heal wounds from tense labor negotiations by addressing quality-of-life issues affecting its workforce.

If inland rail ramps remain congested due to chassis shortages and discretionary imports continue to flow away from the West Coast to the East Coast, international intermodal volumes could decline for a second straight year.