Journal of Commerce shared “Pricing out of South California favors intermodal rail” on Monday. Amid a small seasonal rise in spot truckload rates this summer, shippers are experiencing significant cost savings on long-haul freight using intermodal rail, particularly in Southern California. The benefits are evident as rail offers a more economical option for one-off shipments compared to earlier this year. However, the surge in Asian imports into Southern California, in preparation to avoid East Coast port labor issues that may start after Sept 30, are resulting in increased transloading activity putting upward pressure on rail spot rates into September and potentially beyond. With recent disruptions, such as the explosion at Ningbo Port and ongoing congestion at major Asian ports, the full effects of this small surge to West Coast ports have been tempered. The question remains—how will U.S. West Coast ports handle the anticipated rush once Asian ports clear up? These developments will be crucial in determining the future pricing dynamics for shippers relying on Southern California's intermodal routes. Ningbo explosion closes port, adds to worsening Asian bottlenecks | Journal of Commerce (joc.com)
Toby Edwards
4mo
Kristina Deprey Given the huge rise in imports to the West Coast it is interesting to see little to no congestion up to now, despite volumes being close to levels seen during covid times, when there was huge congestion. Do you see this continuing and if so whats changed in a couple of years?
Semi Trailer & Truck Body Sales at Strick Trailers
4moHi Kristina, I agree with your post. Relatively minor ripples in the Asian supply chain will have a significant impact here in the US. I read that both BNSF and NS have been making significant investments to increase efficiency and volume. Upon reading your post I can only believe these moves are at least in part, related.