The ocean carrier MSC reported that, as imports from the United States hit a record high, American freight railroads have begun to reduce the volume of imported rail traffic at the ports of Los Angeles, Long Beach and New York.
MSC stated in a service consultation on Monday morning that starting from last Sunday and taking effect in the next two weeks, MSC railroad supplier BNSF (New York Stock Exchange code: BRK.B) will measure at the shipping terminals in Los Angeles and Long Beach. Incoming train.
MSC stated that, therefore, as the cargo will be kept at the maritime terminal until the restrictions are lifted or "weakened", the delivery of the cargo on board or unloaded cargo to Chicago will be affected.
"Given these challenging circumstances, any change of destination can be difficult," MSC said. MSC added that BNSF did not set these restrictions at the ports of Oakland, California and Tacoma, Washington.
BNSF confirmed that it is measuring traffic from the West Coast as a way to manage traffic flow.
BNSF told FreightWaves: "The rate of containers tendered to us on the West Coast continues to exceed the outbound rate of the Chicago Logistics Park." "We are confident of handling and unloading cargo at the speed of demand we see on the West Coast, provided that we have sufficient capacity for the purpose. The goods are received and shipped out locally. We still see low outgoing rates—especially on weekends."
BNSF continued: "We will continue to carry out a series of targeted work with our core ocean carriers, beneficiary shippers and local freight communities to jointly solve this challenging supply chain problem."
MSC also noted on Monday that since last Sunday, an unnamed MSC rail operator has begun to measure traffic from New York to three Midwestern destinations: Chicago, Cleveland and Indianapolis.
"If [the] the current situation does not improve, these temporary measures are likely to be extended to other ramps," MSC said. It added that it will pass on any updates from railway operators.
The CSX (NASDAQ: CSX) network connects to these locations, but the railway company did not respond to a request for comment. However, on Sunday, the railway company stated in a service consultation that the damage caused by the severe thunderstorm affected CSX's railway operations and the railway connecting to and from the North Jersey terminal.
"Traffic is being diverted as much as possible, but delays are expected for cargo entering and leaving the New Jersey gateway. Thank you very much for your patience and understanding, as the CSX team is working around the clock to resume normal operations," CSX said on Sunday. The railway will report its earnings for the second quarter of 2021 after the market closes on Wednesday.
According to the report, the railway is restricting inbound sea container transportation from the busy Los Angeles/Long Beach area and New York. Last week, United Pacific Corporation (NYSE: UNP) took action to suspend international container transportation from West Coast ports to Chicago for a week. To reduce the backlog in Chicago and the port.
Interestingly, a shipper of imported goods told FreightWaves that due to the Los Angeles/Long Beach backlog, the shipper’s container had not been picked up for more than a month.
According to eyewitnesses at congressional hearings last week, these backlogs may lay the foundation for price increases.
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