Intermodal Transportation Eases Capacity Constraints in Los Angeles Market

The recent surge in empty containers arriving by rail to Los Angeles indicates a demand for goods exceeding container availability. This consumer goods flow, primarily from Asia, faces an imbalance as goods move eastward while empty containers return to Asia, impacting transportation capacity. While loaded container volumes leaving Los Angeles increased significantly this year, truckload capacity faced pressure in June. However, intermodal transport seems to have alleviated this pressure, as seen in the recent spike in outbound tender volumes without significantly impacting rejection rates or spot rates.