Rail News

Union Pacific and BNSF partner COFC Logistics are cutting contractual rates on low-volume shippers through the end of the year in a bid to spur demand in a weakened domestic intermodal market.

Canadian Pacific Kansas City is continuing to invest in temperature-controlled intermodal as part of its Mexico-to-US offerings via a new partnership with warehouse provider Americold Logistics.

While demand for domestic rail freight in the UK grows, the network’s ability to handle the more complex smaller shipments has been criticized by cargo owners.

Tiger Cool Express was an innovator in the intermodal industry, one of the first to fully embrace containerized reefer intermodal when it began ramping up operations in late 2013.

Norfolk Southern is a step closer to consolidating its Michigan intermodal business at one site after receiving a grant from the state for improvements at the Livernois yard.

While the FMC has jurisdiction over ocean carriers, it cannot regulate railroads simply because of their association with container lines, CSX said in a motion to disentangle itself from a demurrage complaint.

ILWU Canada rank-and-file will vote later this week on whether to issue a 72-hour strike notice, raising the unprecedented prospect of disruption on Canada’s West Coast amid job actions by labor along the US West Coast.

The railroad is reducing demurrage fees and restoring additional free time that was eliminated in the past two years as international intermodal volumes have fallen sharply from East Coast ports.

Union Pacific’s launch of direct intermodal service from Houston comes two weeks after competitor BNSF announced it would begin a new service from the port’s Barbours Cut marine terminal.

Weeks after starting a new daily train between central Mexico and Chicago, CPKC is introducing 1,000 temperature-controlled containers to the service in a bid to court freight from reefer shippers.

As shippers scramble to shed unwanted inventory, more than 80% responding to a Journal of Commerce survey reported that they’ve kept 53-foot domestic containers for too long, incurring detention fees.

Shippers want Congress to address their inability to challenge rail demurrage fees when they contract for merchant haulage, but finding a solution will be tricky, writes Journal of Commerce Executive Editor Mark Szakonyi.

The Singapore-headquartered terminal operator has extended its reach deeper into the landside business, targeting the growing Central Asia rail freight market.

A “perfect storm” of poor schedule reliability, persistently high electricity prices, weak demand and cheaper diesel for trucking continues to undermine Europe’s rail-dominated combined transport sector.

Customers were largely satisfied with intermodal service in early 2023, citing CSX and J. B. Hunt as the top overall providers in North America, according to a Journal of Commerce biannual survey.

Rail storage has been at the forefront of recent regulatory discussion as the FMC solidifies its final rulemaking on detention and demurrage, with shippers wanting ocean carriers to be the billing party for such charges.

The railroad will start a twice-weekly service to Dallas and once-weekly service to Denver, but no ocean carrier as yet is offering inland moves from Houston.

Rail storage fees continue to be a point of contention for shippers and the National Shipping Advisory Committee wants the FMC to step up and take ownership.

One might expect that Western Canadian ports have benefited from cargo bound for the US Midwest being diverted from the US West Coast to avoid potential labor disruption, but that has not been the case, notes analyst Larry Gross.

Activity at the ports of Los Angeles and Long Beach has a direct impact on the domestic intermodal market, large intermodal providers say, which is why rail volumes were so poor in the first quarter.

Currently, there is no US regulatory agency with direct authority to oversee application of rail storage fees under ocean carriers’ through bills of lading and to determine whether those charges are assessed properly.

Intermodal shippers are saving less than a year ago, but they should anticipate that savings will increase in the months ahead as more annual contracts are signed.

Jones Act carrier Crowley will offer a new international container service from Mexico’s Gulf Coast into Mobile that will use Canadian National for inland reach to the US Midwest and Canada.

New York-New Jersey port truckers who worked five days per week last year are now down to about half that amount, sending spot drayage rates well below levels seen in 2021 and 2022.

Norfolk Southern Railway will institute a mandatory appointment system for truckers handling ocean containers at its Memphis terminal and plans to expand the requirement to Atlanta before the end of the year.

The Georgia Ports Authority expects to begin construction on the approximately $170 million terminal in early 2024, which will have a focus on manufacturing imports and poultry exports.

Beyond the dynamics of the new partnerships, intermodal providers acknowledge that generating fresh cross-border business will be important for long-term growth to fill new containers, but only if the price is right.

CPKC signed a deal with Swift Intermodal for a new daily train between central Mexico and Chicago less than 24 hours after Union Pacific announced a partnership with Canadian National and Ferromex.

Schneider National has inked a multiyear partnership with CPKC on intermodal service between Mexico and the US Midwest, a move that will provide new options for shippers seeking a single train to move their north-south freight.

Some truckers think it is unfair that shippers incur demurrage on weekends when railroads are open and chassis locations are closed, but it’s a complex issue without an easy answer.

The Intermodal Association of North America is adding its voice to the chorus of opposition against a federal push to reclassify independent workers.

Alabama legislators are looking to pass a series of new tax credits that aim to encourage more shippers to use the state’s ports and labor force.

Intermodal providers began idling thousands of domestic containers when demand fell sharply in the first quarter, causing an equipment glut across the US.

Growing tension among shippers, ocean carriers, and logistics service providers over free time fees has ratcheted up with Hapag-Lloyd accusing subcontractor CSX of profiting from rail demurrage.

Data shows there is significant room for growth in the Mexican intermodal market, something the joining of Canadian Pacific Railway and Kansas City Southern could help spur, writes analyst Larry Gross.

To reduce costs, FedEx’s system-wide network overhaul will create a stronger North American “ground-air” trucking network, including FedEx Freight, and increase its use of US intermodal rail, the company says.

While domestic intermodal service was better in the first quarter than the fourth quarter of 2022, Union Pacific grappled with weather challenges that caused it to fall behind its competitors in the eyes of shippers and intermodal marketing companies.

The Port of New York and New Jersey aims to complete a project in the next two years designed to speed the movement of intermodal trains as other ports along the East Coast jockey for discretionary cargo.

NSAC says it supports reasonable detention and demurrage practices, but wants to correct “abuse” of the system by regulating that rail operators directly invoice ocean carriers for storage, not importers.

Despite being prepared for divestiture, the performance of global forwarder DB Schenker is the only reason Deutsche Bahn group is profitable at present.