Intermodal rail services suspended from US West Coast

Union Pacific Railroad will halt all international intermodal service from the West Coast to its Global IV terminal in Joliet, Illinois, for up to seven days beginning today, 19th July, in an emergency measure designed to get thousands of containers out of stacks and to their owners.

UPDATE 26 07 21 – The US railroad operator Union Pacific (UP) will resume its activities from the US West Coast to Chicago gradually, after the rail shipments suspension started on 18 July. “We will resume activity in a staggered approach,” a company’s representative told Container News.

Union Pacific trains suspended West Coast ports to the Chicagoland area for one week from the 18th July, because up to 3,000 containers are piling up in stacks at their terminals, with some containers delayed for over a month.

The seven day railroad suspension from the ports of Los Angeles, Long Beach, Oakland, and Tacoma will relieve congestion at UP’s inland intermodal terminals, most notably in Chicago, while freeing railcars to support import needs on the West Coast.

The emergency measures will redirect efforts toward the stacks of containers in Joliet, which has been fluctuating between 1,000 and 3,000 containers since May, with some containers stuck for more than a month.

Parking capacity in Joliet is at 99%, there are 3,706 containers on chassis still not removed from the terminal and more than 400 railcars with a container but no available space on the ground.

UP began moving containers last month to its G3 terminal in Rochelle, in a sign that they were running low on space and containers have since been piling up on railcars in the closed terminal.

The service suspension is not only about eliminating the stack, it’s also about preventing a railcar shortage and concentrating all efforts on clearing the ocean container congestion into Chicago.

UP will slash reservations 15% from all inland rail hubs to the ports of Los Angeles and Long Beach effective from today.

Service will also be cut from six low volume backhaul lanes into Southern California, including San Antonio, Houston, Kansas City, and Dupo, Illinois.

UP wrote to its customers. “From conversations with many of you, we understand that volumes are likely to remain elevated through at least the first half of 2022. It is with this in mind that we are taking the action so that we can handle even more of your freight while balancing varying supply chain constraints.”

We will continue to monitor the developing West Coast situation, working through any challenges with our colleagues in the US. 

If you have any questions, concerns, or would like any further information regarding the situation in the United States, please don’t hesitate to contact us.