Intermodal Relief: Los Angeles Container Volumes Signal Shift in Freight Capacity

The recent surge in empty shipping containers arriving by rail to Los Angeles indicates a demand for goods exceeding container availability. This consumer goods flow, primarily from Asia to the eastern US, creates a transportation imbalance. While goods travel east, empty containers return to Asia, impacting capacity for both ships and trucks. However, increased use of intermodal transport, moving containers by rail instead of solely trucks, has alleviated some pressure. This is evident in the stable truckload rejection rates despite increased demand, suggesting intermodal is effectively moving goods and preventing a capacity crunch.