Intermodal shippers sending freight into parts of central and eastern Pennsylvania are facing delivery delays and potentially higher short-term transportation costs because Norfolk Southern Railway (NS) is running short of available 53-foot chassis at multiple terminals in those parts of the state.
The railroad has restricted the number of containers it will accept at Harrisburg and nearby Rutherford from several origins to prevent those terminals from becoming gridlocked, market sources say and Norfolk Southern confirmed.
Domestic intermodal containers transferred to NS from other railroads are not subject to the restrictions, although the boxes may still encounter chassis-related delays after arriving in Pennsylvania.
NS, acknowledging the disruption, said it is repositioning chassis from other markets and altering ingate flows to better manage moves at the affected terminals.
“We have already implemented several actions to restore normal fluidity in the Harrisburg market, including deploying additional mobile mechanics to high-demand areas, strategically repositioning chassis from other locations, and adjusting ingate flows to optimize equipment availability and maintain efficient terminal operations,” an NS spokesperson said in a statement to the Journal of Commerce.
The railroad said it was “confident in the actions under way” and that it would work with customers to “communicate proactively, minimize impacts, and support reliable service across the network.”
The restrictions have begun to reduce the chassis deficit, sources said, but the shortage remains substantial. Sources said chassis are being moved into Harrisburg by rail and truck, while repairs of out-of-service equipment are being accelerated, and short-term equipment leases are being evaluated.
NS is also urging shippers not to divert Harrisburg-bound freight through terminals serving Allentown, Scranton or northern New Jersey because chassis supplies in those markets are already lean and being repositioned to Harrisburg.
The backlog at Harrisburg could involve hundreds of containers, according to multiple intermodal marketing companies (IMCs) who asked not to be identified. The exact number could not be independently determined.
Some containers have been waiting for chassis for more than a week, causing missed or delayed cargo deliveries, multiple sources said. Other containers remain at origin because the restrictions are preventing them from being accepted for shipment, or because the boxes may reach Harrisburg but remain on railcars or elsewhere within the terminal complex and are thus unavailable for pickup, the sources said.
Sources said Norfolk Southern has agreed to waive demurrage fees on at least some containers that could not be retrieved because chassis were unavailable. It was unclear whether the railroad is providing storage relief automatically or evaluating charges on a case-by-case basis.
The disruption, meanwhile, is expected to extend into next week. The Labor Day holiday could slow the recovery because fewer drivers are typically available to retrieve containers compared with a normal Monday.
The equipment shortage is not limited to Harrisburg. At Morrisville, outside Philadelphia, containers are also stacked without chassis available to retrieve and deliver the cargo, according to sources at multiple IMCs.
Shippers have few alternatives
While rival CSX Transportation provides an alternative in Philadelphia, NS is largely the only practical rail option for cargo moving through central Pennsylvania. CSX’s nearest terminal is in Chambersburg, approximately 55 miles southwest of Harrisburg, so diverting freight there would require a substantially longer and more expensive dray to receivers in the Harrisburg area.
Chicago is among the most exposed to restrictions in Pennsylvania. approximately 10,000 to 15,000 domestic containers per month move from Chicago to NS Harrisburg or CSX Chambersburg, according to a Journal of Commerce estimate based on data that railroads file annually with the US Surface Transportation Board.
Another option is to move time-sensitive freight by truckload on the spot market. Quotes for Chicago-to-Harrisburg truckload service ranged between $2,500 and $3,000 per load last month, according to a Journal of Commerce analysis of rates from DAT Freight & Analytics, freight brokers Loadsmart and Sunset Transportation, and data from shippers and third-party logistics providers.
By comparison, the door-to-door intermodal contract rate on the lane averaged between $1,700 and $2,000 per load last month, including fuel and local drayage in Chicago and Harrisburg, according to the Journal of Commerce Intermodal Savings Index.