Due to the ongoing extreme congestion, as well as the lack of chassis, both major railroads serving the Midwest have now made the decision to temporarily suspend acceptance of ocean containers to Chicago. This decision will affect IPI moves to Chicago with all ocean carriers. Please note:
UP
- Temporarily suspended acceptance of inbound containers to Chicago, Global IV Terminal, from Los Angeles, Oakland, and Tacoma
- Took effect 12:00 a.m., July 18, and set to expire at 12:00 a.m. July 25, unless further updated
- Carriers affected: ONE, Hapag Lloyd
BNSF
- Temporarily suspended acceptance of all inbound containers to Chicago from Los Angeles/Long Beach. Oakland and Tacoma remain unaffected
- Took effect 12:00 a.m. July 18, and set to expire at 12:00 a.m., August 1, unless further updated
- Carrier affected: MSC, CMA
- MSC is also monitoring traffic from New York to Chicago, Cleveland, and Indianapolis, although no service changes have been made at this time
During this suspension, containers destined to Chicago will remain on the West Coast, once discharged from the vessel. Movement on the rail for these containers should begin once the suspension is lifted. The expectation is that the residual effect of the rail embargo will result in additional port congestion and container dwell time at LA/LGB. However, railroads are hopeful that this temporary inconvenience will alleviate the backlog of containers and allow a return to more efficient movement of intermodal traffic. Noatum Logistics is monitoring this issue closely and will keep you updated of any additional developments.
FAQs
Q: If my container has already arrived LA/LGB, can I terminate it in Los Angeles in order to dray/transload to final destination?
A: No, if your container has already arrived, it is not possible to terminate. The container will need to wait until the rail embargo is lifted before moving to final destination on BOL.
Q: If my container is in transit to LA/LGB, can I update the BOL to terminate in LA/LGB so I can dray/transload to final destination?
A: Yes, this is an option, and will incur a BOL amendment fee as well as additional charges for dray/transload. Please contact your local NL representative for assistance.
Q: If my shipment has yet to depart for LA/LGB, can I look to update the routing to move via Seattle, Oakland or even Canada to IPI locations?
A: Yes, this is an option, however, given the current market, space is extremely tight. If you update the booking/routing after space has been released, there may be additional delays in order to secure space on the alternate routing.
Q: What can I expect from this rail shut down and how will this affect my supply chain?
A: Although this is needed in order to relieve the inland container yard locations in the Midwest of congestion, we do expect that this will cause some immediate additional delays in LA/LGB. We do believe that the backlog this will create in LA/LGB will take several weeks to work through once the rail opens back up, and are advising clients to add 21 days to their current transit times for inland locations.
If you have any questions, please contact your Noatum Logistics representative.