ITS Logistics Issues May Port/Rail Ramp Index
Written by Marybeth Luczak, Executive Editor
ITS Logistics U.S. Port/Rail Ramp Freight Index for May 2024. (Image Courtesy of ITS Logistics)
ITS Logistics on May 16 reported that “as demand shifts are spreading along the U.S. Eastern Seaboard to absorb Baltimore cargo,” Norfolk is finding “significant rate increases in dray and container storage capacity”; that IPI (inland point intermodal) container dwell challenges continue at the Los Angeles and Long Beach, Calif., ports; and that “more stress will hit the U.S. West Coast as shippers divert containers to the U.S.,” ahead of a potential Canadian rail strike.
These findings are part of the Nevada-based third-party logistics (3PL) firm’s U.S. Port/Rail Ramp Freight Index for May. Each month, ITS Logistics releases an index forecasting port container and dray operations for the Pacific, Atlantic and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West and East inland regions.
“All rail operations throughout North America are being moved to a severe concern due to the potential labor disruption in Canada and IPI congestion in Los Angeles/Long Beach,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics, which provides drayage and intermodal services in 22 coastal ports and 30 rail ramps throughout North America. “With the continued container dwell issues in Los Angeles/Long Beach and Seattle-Tacoma (SEATAC) due to flatcar imbalance for IPI import freight, Dallas ramp operations for both import and export will be adversely affected because of equipment imbalance.”
The Canada Industrial Relations Board (CIRB) has chosen to review whether a strike by Teamsters Canada Rail Conference-represented workers at CN and Canadian Pacific Kansas City (CPKC) “would jeopardize Canadians’ health and safety,” according to ITS Logistics. “As a result, the review delays a possible strike that would be conducted by operating crews from CN and CPKC that was set to begin as early as May 22. According to RailState, the execution of a strike would [be] expected to delay the shipment of $1 billion worth of goods per day in Canada.”
Brashier reported that strikes in Canada “will negatively impact ramps in the U.S. Midwest and Toronto, as the majority of those containers enter North America through Canadian ports.” He recommended “terminat[ing] imports at the port of entry and use dray off, transload, and one-way trucking to get freight into D.C. networks.”
ITS said it is encouraging shippers and carriers to initiate a similar strategy for exports and book from the port/container yard. “One-way truckload, transload close to the port/terminal, and draying into the terminal will avoid delays on the rail,” it pointed out. “Industry professionals should also consider transportation providers with a multi-mode, North American footprint to execute applicable received requests.”
For ITS Logistics’ April index details, click here.
