Union Pacific announces intermodal service to Twin Cities

Compiled by Bruce Abbe, SSGA Adviser for Trade and Transportation

Terminal will connect Upper Midwest customers to LA/LB

Union Pacific railroad announced the opening of the Union Pacific Twin Cities Intermodal Terminal on Nov. 20, launching intermodal service to Minneapolis to start in January 2021.

The Specialty Soya and Grains Alliance (SSGA) and its predecessor organizations have long pursued expanding intermodal rail options from the Twin Cities and other Midwest locations to better serve more exporters. Expanded service from UP has been sought because of the potential to add direct service to the Los Angeles and Long Beach container port complexes, which provide more direct ocean service to Southeast Asia.

Union Pacific said the new service will feature domestic intermodal service between the Twin Cities and Los Angeles, expanding its customers’ reach to key Upper Midwest markets. Domestic intermodal refers to rail moves of larger, 53-foot containers, standard semi-truck size for U.S. roads, which carry cargo transloaded at the ports from smaller ocean-going containers. SSGA is inquiring to learn if UP plans to also handle inbound ocean containers at the new Twin Cities operation.

“We are excited to introduce an intermodal terminal strategically located in the heart of the Minneapolis-St. Paul metropolitan area that offers efficient access to Union Pacific’s intermodal network,” said Kenny Rocker, UP executive vice president, marketing and sales. “This new marketplace alternative will give regional shippers and receivers fast, direct and reliable intermodal service to key markets.”

Union Pacific has the largest intermodal network in North America, with the most direct services from coast to coast. It will evaluate additional service expansion opportunities into the Twin Cities Intermodal Terminal throughout 2021. More information is available in the intermodal section of Union Pacific’s website.

Container crunch could last until March – or longer

Don’t look now, but the unprecedented imbalance in the container shipping – which has led to a major shortage of containers to serve U.S. exporters – could last into March of 2021 “or longer,” some experts are saying.

American Shipper quoted consulting services who said the heavy consumer demand for container consumer goods will last through the Chinese Lunar New Year into March, although, they added, predicting the timing of the let up is very difficult.

The pressure on the ocean carriers to get containers back to Asian manufacturers as fast as possible is so acute, some carriers have resorted to temporarily suspending export bookings from North America, including food and agriculture shipments, that would add time to the equipment turn-around.

Meanwhile, the Journal of Commerce reports that French-owned ocean carrier CMS CGM announced this week it is temporarily suspending taking bookings between Asia and North Europe until the end of December because sustained heavy demand has overwhelmed the container supply chain, creating equipment shortages.

The container supply crunch has also led to congestion at the leading West Coast import destination ports of Los Angeles and Long Beach. Reports show more than 20 ships moored in San Pedro Bay waiting to unload, while more than 20 are now tied up on dock.

SSGA learned this week that Class 1 intermodal railroad has embargoed sending additional container *

Competitive Shipping Action Team meets

SSGA held most of its 2020 Annual Meeting last week, but the last session took place on Tuesday morning with a meeting of its Competitive Shipping Action Team. The virtual meeting was held prior to the Agriculture Transportation Coalition’s (AgTC) Major Midyear Meeting.

The Competitive Shipping Action Team meeting included a robust agenda that included presentations on expanded opportunities for shippers, including:

• Russ Perdue and Gordon Graham of Canadian National Railroad on the new intermodal terminal development in New Richmond, Wis.
• Ashley Ritteman of Valor Victoria Logistics on a new intermodal model in Shell Rock, Iowa
• Bob Sinner, SSGA chair, on the intermodal rail service development in Minot, N.D.
• Peter Hirthe of the St. Lawrence Seaway Authority on Great Lakes agricultural shipping
• Nicholas Raspanti and Cory Wyatt of the Port of New York and New Jersey on strengthening ag exports service for the Midwest.

There was also a discussion by the group, which included around 35 attendees, on container access issues inland exporters are currently facing., and Peter Friedmann of AgTC joined the group for an update just prior to his organization’s meeting.