CP and CN take steps to limit congestion at intermodal terminals

Canadian Pacific and Canadian National have taken steps to limit congestion at their US intermodal terminals as shippers have been slow to pick up containers due to the impact of the pandemic.

The Canadian railways outlined their responses in letters to Surface Transportation Board chairman Martin J Oberman, who on July 22 requested information from all Class I railroads regarding intermodal terminal congestion and related container storage fees.

“Although CP’s four US intermodal terminals (Bensenville and Schiller Park at Chicago, Detroit, and Minneapolis) have remained fluid, we have seen meaningful increases in the number of containers awaiting pick-up by our customers as well as the average dwell for containers in those facilities,” said CEO Keith Creel.

CP’s inbound intermodal volume for the first six months of this year was below levels of 2019 and 2020, Creel noted, yet the number of containers stored at US intermodal terminals nearly doubled compared to 2019.

“Our best assessment is that this phenomenon is primarily the result of logistics challenges affecting intermodal shippers’ access to, and decisions on how to allocate, the resources (chassis, draymen, loading dock space, etc.) needed to handle inbound intermodal shipments, leading them to delay the pickup of loaded containers that have arrived by train at our terminals,” Creel added.

CP has been able to avoid congestion at its US terminals by taking proactive steps, Creel said, such as working with intermodal shippers to divert traffic to an alternative terminal.

For more information visit www.cpr.ca