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Intermodal and Drayage Market Update and Hot Lanes

Intermodal Market Update

The Covid-19 delta variant continues to disrupt supply chains, affecting capacity throughout the world, including the US intermodal network. Most Class 1 railroads, in response to STB questions on what they are doing to help with congestion at intermodal terminals, placed the blame squarely on factors outside of their control: chassis shortages, driver availability and labor shortages at distribution centers. Union Pacific President and CEO, Lance Fritz, said: “Shippers and receivers are responsible for their decisions to overextend their capacity in shipping and receiving, which congests the supply chain. This over-extension is beyond our control.” XPO Intermodal Solutions continues to leverage its container fleet, internal drayage fleet and yards to assist customers through these critical times. XPO Intermodal Solutions has also introduced its capacity surcharge program for the fall to help its customers plan more confidently for the peak shipping season.

 

If you are interested in pursuing capacity in the hot lanes or other lanes, please reach out to your XPO rep or contact us below. 

Hot Lanes: Intermodal

Origin Location Destination Location Rate
Chicago, IL San Antonio, TX $2,750
Chicago, IL Los Angeles, CA $2,000
Chicago, IL Dallas, TX $2,535
Chicago, IL Laredo, TX $1,975
Chambersburg, PA Los Angeles, CA $2,015
Chambersburg, PA Stockton, CA $2,475
Baltimore, MD Los Angeles, CA $2,500
Portland, OR Los Angeles, CA $1,275
St. Louis, MO Los Angeles, CA $2,075
St. Louis, MO Stockton, CA $2,675

Rates shown are inclusive of fuel, subject to XPO standard accessorials, effective from 08/30/21-09/13/21 and applicable for origin/destinations within 50 miles of the rail ramp. 

Two XPO cargo containers being transported by rail

Drayage Market Update

XPO Drayage, Cartage and Port Services have introduced market-based peak capacity surcharges, effective Sept. 13. Many eastern port cities (Savannah, Charleston, Norfolk, etc.) continue to see record capacity and rapidly rising rates. In the Memphis market, the I-40 bridge has been repaired but capacity remains tight. The New Orleans port is closed due to Ida, with an assessment of the situation ongoing. In Houston, the ports have recovered from closures earlier in the month, but congestion is still a factor. In the West, an increased number of vessels are at anchor in Los Angeles/Long Beach. Oakland has been impacted by labor shortages and terminal closures.

If you are interested in pursuing capacity in these or other markets, please reach out to your XPO rep or contact us below.

Why XPO?

As one of the largest intermodal and drayage providers in North America, we have the capability to provide door-to-door freight management.

 

Our intermodal team focuses on building collaborative partnerships with our customers. We have Tier 1 rail partners, controlled capacity of private domestic containers and chassis and access to international containers for domestic shipments.  Our service history spans over 30 years, with a presence at more than 80 rail ramps across North America, including cross-border movements between the US, Mexico and Canada. 

 

For drayage services, we provide extensive high-quality capacity throughout a comprehensive national network of 42 operating locations. In addition to our national footprint, capacity and service reliability, we are differentiated by our technology and the experience of our leadership team. Our scale provides us with opportunities to solve large problems across multiple markets and foster long-term partnerships with customers.

 

Our proprietary Rail Optimizer system manages all aspects of drayage and intermodal operations - it's integrated with our XPO Connect digital platform for industry-leading connectivity with customers. Our scale allows us to capitalize on one of the most durable value propositions in transportation – that rail has a structural advantage over long-haul trucking as it’s less expensive, more fuel efficient, environmentally friendly and helps solve the industry driver shortage.