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US West Coast cargo surge boosting domestic intermodal volumes

Domestic rail volume exceeded forecasts in Q3 , but growth could slow in Q4 . dvande / Shutterstock . com

By Ari Ashe

North American railroads hauled nearly 2.17 million domestic containers in the third quarter as a surge in demand in Southern California drove a 6 % year-over-year increase in volumes , according to the Intermodal Association of North America ( IANA ). The figure exceeded the Journal of Commerce ’ s quarterly forecast of 2.09 to 2.15 million boxes .

It is unclear , however , how much of that demand will hold through mid-November , as is normal , given the West Coast saw heavy volumes of frontloaded cargo ahead of the abbreviated longshore strike on the East and Gulf coasts that will likely result in a weaker fourth quarter for freight .

In six out of the last seven years , domestic container volumes have seesawed through the peak season . Volumes typically rise sequentially in August , fall in September , and move up again in October before falling in November and December . This year , volume grew 4.3 % month over month in August before falling 5.6 % sequentially in September , according to IANA data .

If enough peak season cargo was frontloaded this year , then October ’ s volume might defy the historical trend and decline . Still , the ports of Los Angeles and Long Beach handled record volume in September , which might mean the normal trend will hold .

Darren Field , president of J . B . Hunt ’ s intermodal division , said he ’ s unsure which scenario will occur .

“ We had customers shifting freight from the east back to the west because of fears of [ the ] potential labor strike on the East Coast ...,” Field said during an Oct . 15 earnings call . “ The results are really ... a mixed bag , in terms of how much was pulled forward . We don ’ t really know . I don ’ t want to tell you that none of it was [ because ] some of it was certainly pulled forward . We do have a lot of customers that continue to expect a normal peak as we go through the fourth quarter .”

Dual STB approvals pave way for joint CPKC-CSX Mexico-Atlanta rail service

By Ari Ashe

Canadian Pacific Kansas City ( CPKC ) and CSX Transportation will roll out a new joint intermodal service connecting Mexico with the southeastern US by the end of this year after US regulators approved their separate acquisitions of two sections of a regional rail line running through Alabama and Mississippi .

The Surface Transportation Board ( STB ) said Oct . 17 it had approved CSX ’ s purchase of almost 94 miles of rail from the Meridian & Bigbee Railroad ( MNBR ) that runs between

Burkeville and Myrtlewood , Ala . Separately , the STB gave CPKC the green light to acquire about 50 miles of rail line between Myrtlewood and Meridian , Miss ., from MNBR .

The approvals clear the way for trains to run between Mexico and CSX ’ s Fairburn terminal in Atlanta , with further connections across the Southeast .

“ Applicants state that they intend to create a ‘ premium train service ,’ with direct interchange with CSX at Myrtlewood , that would provide a new competitive routing option for intermodal , automotive and other shippers ,” the STB wrote in its decision . “ The transaction would result in more efficient rail service and increase the competitive options available to shippers . These reductions in route miles could put new markets within reach for shippers .”

Jonathan Wahba , CPKC ’ s senior vice president of sales and marketing , told attendees at the Journal of Commerce Inland Distribution Conference ( Inland24 ) that if final approvals were granted within a few weeks , then service would launch before the end of the year .

Initially , the train service between Mexico and Atlanta will take six to seven days , Wahba said , acknowledging that

28 Journal of Commerce | November 4 , 2024 www . joc . com