Surface Transportation charge of intermodal marketing and sales , told the Journal of Commerce . “ The surcharge ... recognizes the current market conditions and helps Union Pacific further align resources to meet demand .”
Both UP and its primary competitor , BNSF Railway , are preparing for the uptick in freight to continue into the fourth quarter .
“ We have deployed additional train crews across 15 key locations , including along the Pacific Northwest , California and Texas , increased our locomotive fleet by 5 % in the past 60 days , and activated more rail cars than this time last year ,” a BNSF spokesperson told Journal of Commerce . “ We ’ ve invested in adding 30 miles of new track , and 40,000 track feet of inspection capability in the middle of our network ’ s largest fueling facility in Belen , New Mexico .”
Even with surcharges , intermodal remains a costeffective option for shippers . On cargo railed from Los Angeles to Atlanta , Chicago and Memphis , shippers saved $ 1,500 to $ 2,000 per container in July compared with truckload alternatives , according to the Journal of Commerce Intermodal Savings Index .
One Schneider customer who received a $ 350-percontainer PSS told the Journal of Commerce they understood the necessity , while another Schneider customer , facing a surcharge of almost $ 1,000 per box , expressed dissatisfaction and said they would seek alternatives with other carriers . A third shipper was unhappy with surcharges of between $ 800 and $ 1,200 per box from J . B . Hunt and Schneider .
Michael Baumgardt , senior vice president of intermodal at Schneider , said the surcharges are necessary to cover its costs in the current market .
“ Demand trends [ are ] normalizing ... and those trends should continue this fall .”
“ We are continuously assessing the challenges faced by shippers and strive to provide tailored solutions that meet their needs ,” Baumgardt told the Journal of Commerce . “ This may involve offering additional equipment , exploring alternative modes of transportation , and adjusting price points to account for rising service costs .”
email : ari . ashe @ spglobal . com
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www . joc . com September 9 , 2024 | Journal of Commerce 53