US Intermodal Drayage Maxed as Rail Dwell Climbs at LA-Long Beach

The US intermodal network is hitting a wall just as peak season volumes surge. J.B. Hunt is handling record intermodal volume and is paying more for drayage drivers before it can seek higher contract rates from customers. The carrier's drayage capacity is fully tapped — a clear signal that the chassis-and-driver pool serving the largest US port complex can no longer absorb incremental boxes without cost or service consequences. This comes as the broader trucking industry grapples with a persistent driver shortage that is reshaping how private fleets develop and retain drivers.

At the Port of Los Angeles and Long Beach, the pressure is concentrated on rail moves. Average rail-destined container dwell rose to 6.75 days in August from 6.34 days in July, extending a period of elevated intermodal dwell at the nation's busiest port complex. By contrast, local truck-bound dwell actually improved to 2.95 days from 3.03 days, indicating the squeeze is rail-specific rather than port-wide. The ports handled near-record 1.88 million TEUs in August, confirming demand is strong even as service erodes on the intermodal lane.

Other US gateways are stretched too. The Port of Savannah moved 1 million TEUs to start its fiscal year, with August volumes essentially flat year over year despite typhoon disruptions in Asia and constrained Panama Canal water levels. Loaded imports rose 1.5% and exports climbed 4.2%, with Georgia Ports Authority CEO Griff Lynch noting customer demand remains solid even as supply-chain disruptions ripple through August flows.

For Canadian shippers, the cross-border implications are direct. Whether routing containers through LA-Long Beach by rail into Western Canada, or shifting to the US East Coast via Savannah for inland points, both lanes now face compounding dwell and drayage pressures. Cross-border intermodal economics depend on predictable rail cycle times and reliable drayage at the US endpoint; with both under stress, total door-to-door transit times are likely to slip and all-in costs will rise — even as Savannah's CEO reports strong September numbers on the water.

What shippers should do: Pull forward Q4 volume bookings on intermodal lanes to lock in available drayage capacity. Re-examine routing guides to balance West Coast versus Gulf/East Coast options for inland Canadian destinations. Build additional buffer into customer delivery commitments for cross-border intermodal shipments, and confirm with intermediaries whether drayage surcharges are being applied or are imminent.