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International Cooperation Department
Tel.: (+86-21) 65853850-8034
Fax: (+86-21) 65373125
E-mail: ICDept@sisi-smu.org
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Logistics |
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| LA boss Seroka says rail congestion threatens nationwide logjam |
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Date:2022-07-19 Readers:
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EXECUTIVE director of the Port of Los Angeles Gene Seroka has warned that railroads and importers must remove cargo that is stacking up at the nation's busiest seaport in LA to avoid exacerbating supply chain congestion.
""We must take action on this issue immediately to avoid a nationwide logjam,"" he said, adding that rail service disruptions are slowing US cargo flows and helping to stoke inflation, which is at a 40-year high, according to Reuters.
Resulting backlogs at the Port of LA threaten to undo progress workers have made clearing docks after pandemic-fuelled imports inundated the property and left more than 100 ships queueing offshore. More than 29,000 rail containers are sitting on Southern California port's docks. That number should not be more than 9,000, Mr Seroka said.
He called on importers to expedite container pickups and on railroads to send crews, locomotives and rail cars to the port to evacuate the goods.
Union Pacific and Berkshire Hathaway-owned BNSF serve the port and they and other major US railroads slashed jobs and mothballed equipment before the pandemic upended the nation's transportation systems.
Contract negotiations between those railroads and unions representing 115,000 of their workers have deadlocked after more than two years. Both sides in the talks expect President Joe Biden to appoint a panel to recommend terms for a deal.
The railroads' cost-cutting moves stoked profits but ""there wasn't any buffer"" for demand shocks and service disruptions caused by home-bound shoppers' binge on exercise equipment, furniture, appliances and other goods, Stifel analyst Ben Nolan said.
Shipping containers clogged railroad connections in Chicago and other points in the Midwest before rippling out to other parts of the country.
Union Pacific and BNSF did not immediately respond to requests for comment.
https://www.shippingazette.com/menu.asp?encode=eng
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