Rail News

The largest US domestic intermodal provider will no longer partner with CPKC on cross-border loads destined for the Midwest and West Coast, in the latest shifting of alliances on new services between Mexico and the US.

The intermodal routing option from Canada to the Midwest began to fall out of favor beginning in 2021 and accelerated in late 2022 when ISO containers moving in the lane fell below levels last seen six years ago.

The new north-south service will begin next week with trial runs transporting perishable goods out of Latin America to Chicago.

The cracks in the gateway’s attractiveness to importers and exporters out of the US Midwest were showing before this July’s work stoppage and the decline in import demand across North America.

The premium service run by the long-time partners aims to capture so-called just-in-time cargo that has historically been shipped via truck.

Once fully complete by 2025, the current expansion project would allow the port to handle 1.1 million TEUs annually, up from 650,000 TEUs.

The new pool will generate options for truckers and cargo owners moving ocean containers through the major inland market.

Hub Group said its intermodal business trailed competitors in the third quarter despite a mini-peak that developed in Southern California in September.

International intermodal volume in North America fell in the third quarter year over year, but there are glimmers of optimism among some US railroads.

Construction of the C$750 million, 400,000-TEU facility for Canadian and US agricultural and resin exports will be key to achieving more balanced two-way trade through the Western Canadian port.

Despite reporting lackluster third-quarter financial results, the intermodal service provider is cautiously optimistic that the worst of the US freight recession is in the past.

It appears Mexico is beginning to fulfill its growth potential for domestic intermodal, with asset-based carriers ramping up their activity within the country and in the cross-border market, writes analyst Larry Gross.

Tri-Cities Intermodal said it will revive plans to refurbish a cold storage warehouse and rail ramp served by Union Pacific’s intermodal service.

US exporters had limited options to send westbound freight in recent years under precision scheduled railroading, but railroads are beginning to restore some services in a bid to improve relations with shippers.

The chairman of the Federal Maritime Commission wants to thread the needle to find a way to address rail demurrage within the confines of the US Shipping Act, but it’s not an easy proposition.

The tone of the recent event was “very dark,” writes analyst Ted Prince, who says the combination of a good economy but low volumes has created widespread confusion in the intermodal sector.

Transit times are still in flux, but UP believes the service will take seven to eight days to Atlanta and an additional one or two days to Charlotte and South Florida.

North American Class I railroads understand why shippers and logistics providers are skeptical about intermodal service, but they believe disruptions experienced in recent years will not happen again.

CPKC and CSX hope the new joint service will boost volumes along the route, which is not a popular one for intermodal business.

If history is any indication, it is unlikely intermodal providers will be able to implement a rate increase in 2024 contracts until the trucking market rebounds.

The Class I railroad said it and Florida East Coast Railway are looking to take more trucks off the road with the additional intermodal service offering.

Halifax and Saint John are expanding their container terminals as Class I railroads see an opportunity to serve major inland destinations from the Eastern Canadian ports.

A muted peak and post-peak season for imports and intermodal activity has shippers and service providers eyeing a freight rebound no earlier than late 2024.

The US Transport Department will back improvements along tracks that span the ports of Mobile and New Orleans to allow freight and passenger service to coexist.

The Class I railroad and DrayNow will launch an app in 2024 designed to digitize, organize and streamline processes that have previously been performed via email or over the phone.

Owning and operating potential supply chain chokepoints is a competitive advantage, and we should expect to see major carriers — flush with cash post-pandemic — be very active in attempting to secure such assets, writes analyst Lars Jensen.

The division of BNSF Logistics between BNSF Railway and J.B. Hunt is aimed at helping to improve service to joint customers at a time when freight demand is weak.

Railroads told the IANA conference they have made important operational changes that will translate into reliable service when demand picks up, but some logistics companies are not convinced.

Railroads told the Intermodal Association of North America conference they must concentrate on providing more reliable, consistent service at a competitive rate over the long term to reverse the recent market share loss to long-haul trucking.

Sanctions imposed on Moscow following its invasion of Ukraine continue to limit the attractiveness of transport times as low as 12 days offered by forwarders on the China-North Europe rail network.

If the looming strike against the “big three” US automakers comes to pass, then domestic intermodal will surely take another big hit in an environment where there are certainly more downside risks than upside potential for the rest of 2023, writes analyst Larry Gross.

The intermodal provider’s CEO believes there will be a small peak season between now and early November despite data from the US Surface Transportation Board showing volumes are down compared with last year.

The Intermodal Association of North America is building a geofence library for rail and marine terminals, which could provide better tracking of when containers enter and exit the terminals.

The German-based forwarder remains the largest and most attractive takeover target in a cash-rich industry where the main players are all looking for opportunities to consolidate.

BNSF is testing the use of cameras on yard hostlers, poles and drones which can read and log the location of containers in the hopes of increasing fluidity through rail terminals.

Since new services from CPKC and CN were launched in May, intermodal volume out of Mexico has surged more than 30% year over year through the end of July.

Schneider believes once demand picks up for rail transportation, the intermodal industry can return to pre-pandemic levels of productivity for containers.

The Harbor Trucking Association is teaming with Yusen Terminals in Los Angeles to increase the number of appointment slots each day by cutting the container receiving window from two hours to 90 minutes.

Norfolk Southern’s launch of an appointment system for import boxes in Memphis has not been smooth, but the railroad hopes to learn from the problems to make the October rollout in Atlanta better.

Truckload spot rates have risen slightly off the lows seen so far this year, although some trucking analysts do not expect a significant rebound in rates until early 2024.