Rail container dwell times at the ports of Los Angeles and Long Beach reached their highest levels in two years last month and are expected to stay elevated through January. This surge is driven by higher-than-usual import volumes, partially due to cargo diversions from the East and Gulf Coasts.

In October, containers destined for rail spent an average of 9.86 days in the port complex, rising from 9.25 days in September and 8.2 days in August, according to the Pacific Merchant Shipping Association (PMSA). Lawrence Gross, president of Gross Transportation Consulting, predicts dwell times will remain prolonged until rail networks adjust to the increased volumes.

Rail container dwell times at the ports of Los Angeles and Long Beach reached their highest levels in two years last month and are expected to stay elevated through January. This surge is driven by higher-than-usual import volumes, partially due to cargo diversions from the East and Gulf Coasts.

In October, containers destined for rail spent an average of 9.86 days in the port complex, rising from 9.25 days in September and 8.2 days in August, according to the Pacific Merchant Shipping Association (PMSA). Lawrence Gross, president of Gross Transportation Consulting, predicts dwell times will remain prolonged until rail networks adjust to the increased volumes.

While import volumes remain high, railroads and terminal operators believe the worst may be over. Alan McCorkle, president of Yusen Terminals, noted that rail container volumes peaked in October and efforts are now focused on reducing the backlog.

At Long Beach Container Terminal (LBCT), dwell times have dropped to about three days, according to LBCT president Anthony Otto. Union Pacific Railroad also reported progress, with its container inventory at Los Angeles-Long Beach declining to its lowest level since July 2024.

Railroad performance had been strained earlier this year. Between January and October, Union Pacific and BNSF Railway saw significant increases in idle intermodal railcars, peaking in October with 241 and 237 idle railcars, respectively.

Despite signs of improvement, many shippers continue to struggle with delays. One automotive importer said their supply chain now includes a buffer for prolonged dwell times, noting that smaller shippers face slower turnaround times compared to larger companies.

The Southern California gateway remains critical for industries reliant on rail connections to the eastern U.S. “For many, rerouting to other ports isn’t viable,” said Steve Hughes, CEO of HCS International, citing similar rail delays at West Coast ports like Seattle-Tacoma and Vancouver.

Mario Cordero, executive director of the Port of Long Beach, expressed confidence in the region’s ability to handle high volumes. Long Beach recorded its busiest month ever in October, and Los Angeles is expected to report similarly strong performance.

While the ports are managing record levels without the massive ship backlogs seen in 2022, Cordero noted that Long Beach is currently operating at 70% capacity. “If there’s a bump in cargo, we’ll handle it,” he said.

The Los Angeles-Long Beach complex remains the backbone of U.S. intermodal trade, but the elevated rail container dwell times underscore the challenges of maintaining efficiency amid surging demand.

 

Source: www.joc.com