Infrastructure upgrades and labor shortages increasing lead times
Increased lead time advised
Despite the strike pause, peak season traffic is still in the process of being outgated, and dray carrier data has shown that more lead time is required. During slower months, next-day or same-day capacity was easy to find, but the current best practice is to plan for 1-2 weeks to execute dispatches. As always, the more notice given, the better the odds of good execution.
North America
Southeast
Western North Carolina
This market has seen spikes in drayage rates for loads moving from southeast markets (Savannah, Charleston) into Tennessee through the I-40 corridor. This is due to road closures in Western North Carolina and Eastern Tennessee from the aftermath of Hurricane Helene. The road closures have an undetermined amount of time before they open again as the portion of I-40 at the TN/NC border washed away from a mudslide and I-26 near Erwin, Tennessee is still completely under water. The increases have been compensating drivers for the additional mileage due to detoured routes for commercial vehicles.
Atlanta
Recent updates to the Norfolk Southern Austell Ramp’s appointment system have led to increased congestion in the area. NS will only allow a specific number of drivers into the rail and will block off appointments to enter until the yard traffic is reduced. While this allows for less yard congestion, it causes drivers to get backed up outside of the rail waiting for appointments to release.
We are also seeing challenges with the CSX Fairburn system, as there have been reports of sporadic system closures throughout the day. All freight moving through the Atlanta market will now require at least 2 chassis splits. Capacity and equipment are incredibly tight at present.
Northeast
Philadelphia
We have seen increased traffic due to ongoing infrastructure improvements by Amtrak, which are aimed at enhancing reliability and efficiency. This has caused minor delays in container ingates and outgates.
New York
The Hudson River Tunnel is undergoing significant repairs, which has led to some disruptions in rail services. However, these upgrades are essential for long-term improvements in container handling and overall rail traffic.
Baltimore
The construction of the new Frederick Douglass Tunnel is progressing, which will eventually alleviate one of the biggest bottlenecks in the Northeast Corridor. Currently, this project is causing some delays in container movements.
Central/Ohio Valley
Chicago
The theft of cargo from a Union Pacific (UP) train on the west side of Chicago on Friday highlights several challenges combating such crime, including how to handle interchanges between two Class I railroads in a major city. Chicago and Memphis are major US junction points where North American Class I railroads from the eastern and western US and Canada all meet. The security of cargo being interchanged is becoming a major factor in Memphis as well.
West
Los Angeles/Long Beach
The ports of Los Angeles and Long Beach are experiencing some congestion due to an increase in container volumes. However, efforts to improve rail service and reduce long-dwelling containers are showing progress, with a significant reduction in the number of containers waiting for berths.
Oakland
The Port of Oakland is facing challenges with rail service delays, impacting the timely movement of containers. Despite these issues, there are ongoing efforts to enhance infrastructure and improve efficiency in container handling.
Houston
We are seeing increased container traffic due to diversions from other routes, such as the Panama Canal. This has led to some congestion, but the port is actively working on expanding its capacity and improving rail connections to handle the additional volume.