Union Pacific will suspend service between the West Coast and its Global IV gateway in Chicago in an effort to improve congestion at the inland intermodal terminal, a spokesperson for the railroad confirmed. The suspension will begin Sunday and last a week. The Union Pacific spokesperson said that the railroad is dealing with “significant congestion at our inland intermodal terminals, most notably in Chicago.”
The decision to halt service between the West Coast and Chicago comes as the supply chain is dealing with a significant amount of congestion at just about every mode. And without containers moving inland as expected, experts expect this decision to temporarily worsen congestion on the West Coast.
The West Coast has been dealing with its own congestion issues for months at this point due to high import volumes that have pushed up dwell times. And it has not shown any signs of improvement in the most recent figures released by The Port of Los Angeles. The congestion has been impacting rail services for months at this point.
Still, port officials and ocean carriers agree that Union Pacific’s decision will help to alleviate the issues in Chicago.
Source: Supply Chain Drive