The ports of Los Angeles and Long Beach are currently facing significant rail congestion, causing delays for shipments moving between the West Coast and inland locations such as Chicago, Kansas City, Dallas, Houston, and Memphis. This disruption is impacting both import and export cargo, resulting in longer wait times and operational challenges.
Off-dock import shipments are experiencing delays of over 10 days to be moved from the terminal to the rail staging area, followed by another 7-10 days to be loaded onto a railcar for departure. Export shipments are also facing delays of 7-10 days as outbound trains await clearance to leave for the port terminals.
With these extended delays affecting supply chains, it’s essential to understand the underlying causes and available contingency options to manage urgent shipments effectively.
What’s Causing the Rail Congestion?
Several factors have converged to create the current congestion at the Los Angeles and Long Beach ports:
- Cargo Shifting from East Coast Ports
With ongoing labour disruptions on the East Coast, many shippers have rerouted their cargo to the West Coast to avoid strike-related closures. This surge in shipments has placed additional pressure on West Coast port operations and rail networks.
- Front-Loading Ahead of Peak Season
Shippers are accelerating their import schedules to avoid potential tariff increases following the upcoming U.S. elections. This front-loading has created early peak season conditions, further increasing congestion at the terminals.
- Record Container Volumes in the Transpacific Trade Lane
Over the past few months, ocean carriers have added extra vessels, known as “extra loaders,” in the transpacific trade lane. As a result, the number of containers arriving at Los Angeles and Long Beach terminals has reached levels not seen since the height of the pandemic, overwhelming both port and rail operations.
How Long Will the Delays Last?
While the upcoming blank sailings post-Golden Week should provide some relief, the effects will likely not be felt until early November. Terminals will need several weeks to work through the backlog of rail freight. Shippers and logistics providers should plan for continued delays over the next 4-6 weeks as congestion slowly eases.
Contingency Plans for Urgent Shipments
To manage critical shipments during this period of rail disruption, there are several contingency options available:
- For Exports: Bypass Rail Delays with Direct Drayage
Direct drayage can be arranged from the cargo’s origin point to the load port on the West Coast, bypassing the congested rail network. This method ensures your cargo reaches the port terminals without being delayed in transit by rail congestion.
- For Imports: Request Container Diversions at the Port of Arrival
If the ocean carrier’s terms permit, containers can be diverted and terminated at the port of arrival rather than continuing via rail to the original inland destination. From there, expedited drayage or transloading services can be arranged for final delivery. Using FTL trucking (Full Truckload) for urgent deliveries ensures faster transport to inland destinations, avoiding rail delays entirely.
What Can Shippers Expect Moving Forward?
Given the severity of the congestion, it’s essential to plan for potential disruptions in your supply chain. While some relief is expected after post-Golden Week blank sailings, it may take until mid-November for operations to return to normal. In the meantime, shippers should:
- Monitor cargo movement closely: Stay updated on any changes at the Los Angeles and Long Beach terminals.
- Communicate with logistics providers: Work closely with carriers and freight forwarders to identify alternative solutions.
- Adjust delivery timelines: Account for longer transit times when planning inland deliveries.
Need Assistance? We’re Here to Help
Navigating these disruptions requires flexibility and proactive planning. If you have any questions or need assistance managing your shipments during this period, please don’t hesitate to contact the Airmark team. We are committed to helping you find the best solutions to keep your cargo moving, even in these challenging circumstances.
