ITS Logistics May Port Rail Ramp Index: Potential Canadian Rail Strike Causes Increased Stress at US West Coast
May 16 2024 - 11:41AM
ITS Logistics today released the May forecast for the ITS Logistics
US Port/Rail Ramp Freight Index. This month, the index reveals
Norfolk is reporting significant rate increases in dray and
container storage capacity as demand shifts are spreading along the
US Eastern Seaboard to absorb Baltimore cargo. There also continue
to be inland point intermodal (IPI) container dwell challenges in
Los Angeles and Long Beach (LA/LB) ports. In addition, due to the
potential Canadian rail strike, more stress will hit the US West
Coast as shippers divert containers to the US to avoid potential
operational issues.
“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 LA/LB,” said Paul Brashier, Vice President of
Drayage and Intermodal for ITS Logistics. “With the continued
container dwell issues in LA/LB 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.”
Just this week, the Canada Industrial Relations Board (CIRB)
chose to review whether a strike by railworkers at Canadian
National Railway (CN) and Canadian Pacific Kansas City (CPKC) would
jeopardize Canadians’ health and safety. 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 expected to
delay the shipment of $1 billion worth of goods per day in
Canada.
“Canada strikes will negatively impact ramps in the US Midwest
and Toronto, as the majority of those containers enter North
America through Canadian ports,” continued Brashier. “The best
operational plan to avoid these challenges is to terminate imports
at the port of entry and use dray off, transload, and one-way
trucking to get freight into DC networks.”
ITS encourages shippers and carriers to initiate a similar
strategy for exports and book from the port/container yard (CY).
One-way truckload, transload close to the port/terminal, and
draying into the terminal will avoid delays on the rail. Industry
professionals should also consider transportation providers with a
multi-mode, North American footprint to execute applicable received
requests.
ITS Logistics offers a full suite of network transportation
solutions across North America and omnichannel distribution and
fulfillment services with two-day reach to 95% of the U.S.
population. These services include drayage and intermodal in 22
coastal ports and 30 rail ramps, a full suite of asset and
asset-lite transportation solutions, omnichannel distribution and
fulfillment, and outbound small parcel.
ContainerAI, the company’s container management and visibility
platform, provides users with the ability to track any container
diversions and collaborate on multimode solutions. While
significant challenges to rail operations throughout North America
are underway, visibility milestones for that mode, including ramp
operations and trucking, are more important than ever. Transit,
ramp availability, and trucking milestones visibility can help
mitigate ramp storage and container detention concerns. If
utilizing a visibility platform, professionals should ensure that
the application has accurate rail visibility data.
The ITS Logistics US Port/Rail Ramp Freight Index forecasts 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 Inland and East Inland
regions. Visit here for a full comprehensive copy of the index with
expected forecasts for the US port and rail ramps.
About ITS LogisticsITS Logistics is a premier
Third-Party Logistics company that provides creative supply chain
solutions with an asset-lite transportation division ranked #19 in
North America, the #11 drayage and intermodal provider, a top-tier
asset-based dedicated fleet, and innovative omnichannel
distribution and fulfillment services. With the highest level of
service, unmatched industry experience and work ethic, and a laser
focus on innovation and technology–our purpose is to improve the
quality of life by delivering excellence in everything we do.
Media ContactAmber
GoodLeadCoverageamber@leadcoverage.com
A photo accompanying this announcement is available at
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