Rail Operations Will Become Critical Concern: Study

The latest ITS Logistics US Port/Rail Ramp Freight Index reveals a concern as to whether trucking, chassis, and container storage capacity will be able to effectively handle expected volumes.

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The latest ITS Logistics US Port/Rail Ramp Freight Index from ITS Logistics reveals a concern as to whether trucking, chassis, and container storage capacity will be able to effectively handle expected volumes.

“As forecasted in the January index, there are significant pre-Lunar New Year volumes shipping to all regions of the U.S. as shippers and BCOs restock inventories,” says Paul Brashier, VP of drayage and intermodal for ITS Logistics. “Volumes are even more pronounced because of additional former Suez Canal container traffic utilizing the U.S. West Coast, primarily Los Angeles/Long Beach, as the entry point into the country. This has initiated the cause for concern in these other areas. In addition, due to a significant amount of infrastructure and trucking capacity exiting the market post-COVID, and last year specifically, this has heavily impacted the rates and capacity overall.”

Key takeaways:

  • The cautionary response is due to a decrease in numerous assets due to avoidance of West Coast ports around post-COVID congestion concerns and labor unrest in 2023. Shippers and BCOs should also be on the alert as rates and capacity availability are projected to become extremely volatile.
  • While supply chains have been able to rebound since the pandemic, the recent conflicts in combination with climate change and intricate geopolitical disruptions, are resulting in higher freight rates. 

“Rail operations will be a concern as well,” adds Brashier. “Much of the diverted freight from the Suez Canal coming into the U.S. West Coast will need to move East. Unplanned volume and IPI volume will strain rail capacity and ramp operations throughout the nation. This is especially true in the larger metros of Chicago, Dallas, Memphis, and Atlanta. Chassis and trucking capacity are a concern as we move into March.”

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