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Record-setting imports in September, driven by diversions from the East Coast and Gulf Coast strikes as well as ongoing Red Sea issues, have led to significant rail congestion at the ports of Los Angeles and Long Beach. Container rail yards at these West Coast ports have become bottlenecks causing delays for various industries.

At Los Angeles and Long Beach, dwell times have spiked dramatically, reaching a two-year high. Port of Los Angeles Executive Director Gene Seroka reported that approximately 20,000 rail containers are sitting at the port, waiting to be loaded onto trains. Seroka emphasized that while vessel and trucking operations remain unaffected, the rail congestion remains a critical focal point that requires ongoing dialogue with rail companies.

September marked an all-time high for imports at the Port of Los Angeles, which moved 954,706 twenty-foot equivalent units (TEUs). Similarly, the Port of Long Beach managed to move 829,499 TEUs, maintaining its fourth consecutive monthly year-over-year cargo increase.

Retail and chemical industry executives have voiced concerns about the delays. Matt Shay, CEO of the National Retail Federation, noted that retailers are preparing for robust holiday sales, projecting winter holiday spending to rise between 2.5% and 3.5% over last year. Meanwhile, Eric Byer from the Alliance for Chemical Distribution highlighted the importance of these ports for vital chemicals imported from China, which are now experiencing delays.

Freight rail lines, such as Union Pacific and BNSF Railway, are adapting to the record volumes by deploying additional resources and speeding up operations. Despite efforts to manage the increased load, challenges persist due to diverted volumes and unexpected disruptions, such as a lithium battery fire that temporarily shut down the ports.

Logistics managers report varied dwell times, averaging around two weeks, but sometimes extending to as long as four weeks. Experts like Paul Brashier of ITS Logistics are taking measures to bypass initial rail terminals at the ports to expedite cargo movement inland.

DHL Global Forwarding's Geotz Alebrand advises clients to consider rerouting shipments to the East Coast to sidestep the long wait times at the West Coast ports. However, he noted that ongoing labor contract negotiations at East Coast ports make some clients hesitant to switch their routes.

With the continuous influx of cargo, stakeholders are working diligently to maintain fluidity in the supply chain, even as multiple factors, from early Lunar New Year expectations to the looming U.S. presidential election, add layers of complexity to the situation.