As a result of the record volumes, Union Pacific has made operational changes to accommodate the increased traffic. We have made adjustments to train schedules to help manage the increased volume and keep our network fluid, the spokesperson said. We are working closely with our customers to ensure that we are meeting their needs and delivering their cargo in a timely manner.
Similarly, BNSF Railway has also seen a surge in container traffic from the West Coast ports. We have experienced a significant increase in container volume from the Ports of Los Angeles and Long Beach, a spokesperson for BNSF Railway told CNBC. In response, we have added additional trains and resources to help move the cargo efficiently. We are working closely with our partners to ensure that we are able to handle the increased volume and keep the supply chain moving smoothly.
Despite the challenges posed by the record volumes, both Union Pacific and BNSF Railway remain optimistic about the future. We are confident in our ability to handle the increased volume and continue to provide reliable service to our customers, the Union Pacific spokesperson said. We are committed to working with our partners to ensure that we are able to meet the demand and keep the supply chain moving.
Overall, the record volumes at the West Coast ports have led to congestion on the rails, but the railroads are working diligently to manage the increased traffic and keep the supply chain moving smoothly. With the holiday season approaching and continued strong economic growth, stakeholders are hopeful that the rail congestion will be resolved in the coming months.
To maintain a smooth supply chain, we are collaborating with customers to temporarily regulate the flow of containers into LA and Long Beach, the spokesperson stated.
A representative from BNSF mentioned that the first half of 2024 set a half-year record for on-dock volumes at BNSF, with the company achieving one million lifts at on-dock terminals within a year, the fastest in its history.
Despite some recent challenges beyond our control, such as diverted volumes from the East and a lithium battery fire that caused temporary port closures, we are working diligently to address these disruptions, the BNSF spokesperson explained.
The spokesperson emphasized the need for cooperation among interchange partners, terminal operators, and dray providers to ensure the smooth operation of the entire point-to-point network.
BNSF’s ability to handle the record volumes at the ports is attributed to strategic preparations for the busy season, including investments in capacity along the Southern Transcon, expansion of main track and additional parking spaces within intermodal hubs.
Supply chain executives express concerns about shipping customers, citing average dwell times of two weeks for containers at Los Angeles and Long Beach, with some cases experiencing up to four weeks of delay.
Logistics managers like Paul Brashier of ITS Logistics are implementing contingency plans to navigate rail issues at the port and minimize disruptions.
Geotz Alebrand from DHL Global Forwarding highlighted extended dwell times at West Coast ports as a pressing issue, recommending alternative strategies to mitigate delays, such as rerouting cargo to East Coast ports.
Both Norfolk Southern and CSX play crucial roles in moving rail freight out of East Coast ports, with both rails handling diverted containers from the West Coast during the pandemic to avoid lengthy delays.