Client Advisory

Client Advisory 07.30.26: Increasing Port & Rail Congestion at Los Angeles and Long Beach

Importers utilizing the Ports of Los Angeles and Long Beach are experiencing increasing transit delays as elevated import volumes place additional pressure on terminal operations and inland transportation networks.

Unlike the vessel congestion experienced during 2021–2022, the current challenges are primarily driven by constraints moving cargo from marine terminals into inland transportation networks, particularly due to rail capacity limitations, equipment availability, and overall network fluidity.

Current Conditions

Several factors are contributing to increased congestion:

  • Early peak season demand: Importers have accelerated shipments due to trade policy uncertainty and inventory planning.
  • Higher terminal inventories: Increased cargo volumes have slowed container movement through marine terminals.
  • Rail capacity limitations: Inland rail networks are experiencing longer container dwell times as cargo volumes exceed available capacity.
  • Equipment constraints: Longer container cycles are impacting chassis availability and overall equipment flow.

Current Impact

  • Longer rail dwell times and increased transit variability
  • Delays to inland destinations, particularly Midwest rail markets
  • Reduced rail car availability
  • Increased exposure to demurrage, storage, and per diem charges

Outlook

Elevated congestion is expected to continue through the peak shipping season, with rail and terminal operations likely remaining under pressure through August and September. Conditions may gradually improve beginning in October as import volumes moderate and rail networks recover capacity, with a return toward more normal operations expected by late Q4 2026, assuming no additional disruptions.

Actions to Consider

  • Review alternative gateways and routing options
  • Build additional transit time into inventory planning
  • Prioritize critical shipments and evaluate expedited options
  • Explore transload solutions where rail capacity is constrained
  • Monitor containers closely to avoid unnecessary storage and demurrage exposure
  • Complete customs clearance and delivery instructions prior to vessel arrival

Laufer continues to monitor port, rail, and carrier conditions to help customers identify risks and develop solutions to maintain supply chain continuity. For additional information or assistance evaluating mitigation options, please contact your local Laufer Customer Service, Booking, Operations, or Sales representative.

Additional References:

PORT OF LOS ANGELES RECORDS BEST JUNE EVER, TOPS 1 MILLION CONTAINER UNITS

Import On-Dock Rail Awaiting Loading

Import Containers by Dwell Time

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