The Norfolk Southern, CSX, BNSF, Union Pacific, and KCS railroads have provided announcements about a potential strike on September 16th, 2022, which will impact the entire United States rail network. As of September 12th, most railroads have already placed embargos on hazardous shipments and temperature-controlled freight to ensure that this cargo is not in-gated and held on terminal in the event of a strike. This strike has the potential to significantly impact any import or export cargo, including rail leg (intermodal) portions of cargo within the United States.

Below is the current status by railroad operator:

• CSX – All hazardous shipments, and other safety-sensitive freight, will be embargoed effective today, Monday, September 12th.
• BNSF– They are beginning to take steps to manage and secure the shipments of hazardous and security-sensitive materials as early as today, Monday, September 12th.
• Norfolk Southern– Effective Tuesday, September 13th, at 1200 (noon), all ingates will close to intermodal traffic, on-dock traffic will not be accepted, interline shipments may be affected, and out gates will remain open until further notice.
• KCS– They are not currently planning to embargo shipments, but circumstances could change because of embargoes put in place by other railroads.
• Union Pacific– They are embargoing TIH/PIH Inhalation shipments, time-sensitive, and temperature-controlled commodities effective today, Monday, September 12th.

Canadian railroads are not impacted at this time; however, they can expect additional congestion and delays in the event of a rail strike in the United States.

If you have elected to move freight intermodally with RIM, it is advisable in the near-term to consider routing alternatives. Transloading cargo at port locations is a viable routing choice for cargo that has already sailed or cargo that is pending a booking. This includes utilizing domestic all-truck haulage services between the port and inland locations. We also recommend exploring air freight options for time-sensitive cargo. Any cargo booked to or from interior intermodal locations within the United States utilizing rail services is subject to significant delay or cancellation at this time.

We have suggestions below to consider to help mitigate additional delays.

• What can you do if you are booking cargo now? We suggest booking cargo to port destinations only. RIM can provide transload and truck load delivery services from port to door. Our sales and operations teams are ready to assist with quoting, transload, and direct delivery options. In anticipation of this rail event, RIM has strategically aligned with five (5) major transload facilities in the Los Angeles area which are capable of handling an estimated 1000 transloads/long distance deliveries per week. We are currently handling hundreds of transloads weekly, bringing average transit times to the Midwest to under thirty days from ports in Asia. The additional costs for these services, depending on your final destination, can result in an approximate 10-20% increase in your overall transportation costs. On a positive note, you will also experience reduced transit times and, in most cases, a complete elimination of detention and demurrage related fees.
• What can you do if you have freight in transit with a common carrier scheduled to go on rail? If you already have intermodal freight in transit and it is five (5) days off the coast, RIM can work with our carriers to divert the cargo to terminate at the Los Angeles pier complex. There may be AMS implications that should be discussed with the RIM Compliance team or RIM Customer Service teams prior to execution. Please contact your local account manager or sales representative so they can assist and/or discuss the possible diversion of your cargo.  There is a fee for diversion, so please make sure that you understand all of the costs associated with this activity. Additionally, the carrier may refuse the diversion at their discretion.
• What if I am on RIM’s Charter Service and have elected to move my freight on the rail? Simply contact your sales or operational account manager at RIM and they will cancel the intermodal rail move at no cost to your company.  We will stop the freight in Los Angeles, transload the freight, and move it by truck to your door. Quotes for these services will be provided independently, as requested.
• What if I need my freight but it cannot be transloaded? RIM can arrange long distance deliveries via our Long Beach drayage providers.

RIM logistics, ltd. will continue to closely monitor the situation and keep you advised of any updates as they become known. Please contact your RIM representative should you have any questions or need additional information.