West Coast port congestion leads Norfolk Southern, Union Pacific to test new ideas in cross-country rail shipping

Ongoing rail congestion at West Coast ports has created an opportunity for East Coast ports, container shipping companies and rail operators to enter into new trade relationships.

In January, ocean carrier Hapag Lloyd ,Norfolk Southern ,the Port of Virginia, and Union Pacific ,collaborated in creating a triangle of trade where West Coast bound freight would be brought into the Port of Virginia and loaded onto Norfolk Southern rail cars. The containers would then be loaded onto a UP railcar in Chicago bound for the West Coast.

Rail delays are not improving on the West Coast. Logistics managers are measuring rail delays of 12 days at the Ports of Los Angeles and Long Beach. For containers that are moved by a combination of truck and rail, delays are at 30 days. The congestion on the rails is also impacting inland rails, with delays. One logistics provider told clients the wait for a container pickup at a rail yard in Dallas is between 40-50 days. Other railyards in Kansas City and Memphis are also stacked with containers.

-CNBC

(https://www.cnbc.com/2022/09/07/west-coast-port-congestion-leads-railroads-on-a-new-cross-country-trip.html)