RAIL SUSPENSION NOTICE
Union Pacific (UP) railway company has announced an eastbound rail suspension from all U.S. West Coast ports to Chicago Global IV Terminal effective from Sunday July 18, 2021 at 23:59 to improve fluidity and reduce backlog of cargo to the terminal.
For a period of up to 7 days, all eastbound shipments to Chicago Global IV Terminal from any U.S. West Coast marine terminals will not be accepted.
The suspension will impact the delivery of on-board or discharged cargoes to Chicago and shippers are warned to expect delays. Some restrictions on new bookings from Asia to Chicago destinations may be implemented in order to clean-up any already in-transit cargoes.
INTERMODAL DELAYS
The U.S. intermodal supply chain has stressed port and inland terminals beyond capacity, while turn times continue to rise and some Chicago yards remove excess track to make space for off-loaded containers waiting for pick-up. If containers are left for too long in the rail yard, the freight will begin to accrue rail storage fees, a form of demurrage.
While the Federal Maritime Commission (FMC) has ruled that container availability is a precondition for demurrage, they do not have authority over U.S. railroads. Because containerized rail was deregulated in the 1980s, the Surface Transportation Board, despite its supervision authority, cannot formally intervene.
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