North-American rail

Mexico’s domestic intermodal market is benefiting from the relatively new “near-shoring” trend, writes intermodal analyst Lawrence Gross.

Market conditions appear more favorable toward carriers today compared with 12 months ago, but the pendulum is close to a balanced domestic intermodal market heading into the back half of 2024.

The February decision from the agency said ocean carriers can mandate which chassis to use for carrier haulage business, but not for merchant haulage.

The market share of loads entering or exiting the port’s Garden City Terminal on train has increased from a year ago as the Georgia Ports Authority grows into a relatively new on-dock rail yard.

The port is the latest inland location in the western US looking to capitalize on strict regulations in California that are driving up costs for trucking companies.

Domestic intermodal service has been significantly better so far this year compared with the pandemic-disrupted years of 2020 to 2022, but shippers remain reluctant to tender some freight to the railroads, a Journal of Commerce survey found.

The current chaos playing out in the container market globally doesn’t have to last that long to have some big impacts on North American intermodal, writes Larry Gross.

After a successful one-off exercise involving 300 containers moving through Terminal 18 in Seattle, the Northwest Seaport Alliance will seek to convince ocean carriers to implement greater use of block stowage of rail cargo on vessels leaving Asia.

Cargo theft on the rails is becoming highly organized, with criminals targeting specific pallets inside containers being carried on a train rather than ransacking boxes at random.

The issue of whose chassis to use to haul a container remains unclear as more truckers opt to use their own, but ocean carriers and pools also look to supply the market.

Intermodal executives are trying to address container thefts through more security measures as shippers become increasingly frustrated with the problem.

The railroad is tackling one of the major pain points at the Atlanta-area terminal after congestion had gotten so bad in recent years that fleets would pay drivers extra just to go into the facility.

The average cost savings for a shipper choosing intermodal rail over truckload was about 26% in the first quarter, according to the latest Journal of Commerce Intermodal Savings Index.

Alan Shaw will remain in his position as CEO of Norfolk Southern, but Ancora Holdings gained leverage on the railroad’s board of directors, winning three seats.

Terminal operators in Vancouver are bracing for a possible strike by railroad conductors and engineers later this month just as the terminals are beginning to experience reduced rail container dwell times.

US rail unions have opposed measures that would allow Mexican crews to take trains across the border because they are reluctant to relinquish jurisdiction on transits within southern Texas.

The chief executives of BNSF and UP argue that while shareholders judge them on financial metrics, it would be a mistake to shun intermodal business simply because its margins are not as good as hauling other types of freight.

Federal conciliators have tried since March 1 to negotiate a deal between Canadian Pacific-Kansas City, Canadian National Railway and the Teamsters rail conference, without success.

The split recommendation from the influential proxy research firm comes one day after Glass Lewis recommended ousting Alan Shaw and COO John Orr.

The endorsement of Glass Lewis for Ancora’s slate of opposition candidates puts the job status of current NS CEO Alan Shaw and COO John Orr in jeopardy.

The intermodal provider has become more aggressive in pricing with shippers this year, jockeying with competitors for market share by lowering contractual rates for a second consecutive year.

Joe Hinrichs warns that focusing on better margins at the expense of intermodal business is short-sighted, defending his decision to extend sick pay leave for labor and arguing that empowering workers is key to delivering better service.

Shippers have long struggled to get direct access to rail milestone data that matches the depth and accuracy of ocean visibility markers.

The cargo flow through the Landers terminal is better than it was earlier this year with fewer drivers experiencing multi-hour delays to pick up or drop off containers at the busy facility, the railroad says.

CSX chief Joe Hinrichs, speaking at the Georgia International Trade Conference, backed the value of intermodal and labor, two things under attack in recent years from activist investors more concerned with competitive margins and other financial metrics.

The railroad and Ancora Holdings have been trading barbs ahead of a May 9 vote by shareholders that could see Ancora oust the railroad’s top executives.

The country’s largest intermodal trucking provider was hit by a see-saw effect in early 2024 as a “dogfight” with truckers in the East balanced import gains in the West. 

Ancora Holdings is trying to unseat Norfolk Southern’s current leadership in part because of mistakes it believes the railroad’s executives have made in the intermodal business.

The railroad also revealed it expects its second-quarter revenue to be impacted by $50 million to $100 million due to the closure of the Port of Baltimore following the collapse of the Francis Scott Key Bridge.

The railroad is gathering information on how to streamline the flow of trucks through terminals ahead of launching an appointment system later this year at three key hubs.

Norfolk Southern will join CSX in running inter-port trains between New York/New Jersey and Baltimore to limit disruptions involving cargo rerouted after the collapse of the Francis Scott Key Bridge.

Negotiations between the railroads and the Teamsters have hit a stumbling block over salary and mandatory rest periods, prompting the union to schedule an April 8 start date for voting on a possible strike notice.

Nearby gateways are preparing to handle the diversion of vessels and freight that would have landed at Baltimore at least through May following the port’s indefinite closure.

Given the ample supply of marine chassis available in the US, chassis providers are confident they can handle any rerouted cargo from the closed Port of Baltimore to other East Coast ports in the short term without issue.

Recently passed House legislation amending landmark shipping reform takes a hard approach to China’s maritime influence on US ports but holds back on reining in the limited antitrust exemption container lines use to participate in alliances, writes Executive Editor Mark Szakonyi.

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

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.

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.

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