Tech companies begin rerouting critical chip supplies to trucks with rail strike looming

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Semiconductor chip suppliers are among companies starting to send more cargo to trucks ahead of a potential freight railroad strike.

DHL Global Forwarding says technology companies are among clients moving shipments to trucking with the risk of a national freight rail strike in December.The logistics company warned of hot spots of rail congestion in Dallas, Fort Worth, and El Paso.A container delivery truck heads for one of the terminals at the Port of Long Beach in Long Beach, California.

"This is tech cargo originating out of California," said Goetz Alebrand, head of ocean freight for the Americas at DHL Global Forwarding. Alebrand said there is now more truck capacity than there had been when a rail strike was first threatened in September as a result of fewer containers ships overall coming in to U.S. ports.

Ninety-six hours before a strike date, chemicals are no longer transported. According to the American Chemistry Council, railroad industry data shows a The Association of American Railroads would be expected to release its planning steps, similar to what itAlebrand said is a client's cargo is not characterized as perishable or hazardous, it waits to be moved. On average, it takes about two to three days to clear up one day of backup. The September pre-strike containers that were held up for approximately 48 hours took six days to clear.

 

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