If a Trump administration proposal to tax Chinese-built and -operated ships calling at US ports is enacted, the nation’s Class I railroads could face the challenge of attempting to move cargo through fewer entry points without disrupting service, railroad executives said Tuesday.
Executives from CSX Transportation and Union Pacific Railroad (UP), speaking at the J.P. Morgan Industrials Conference, said while they could accommodate a shift toward larger ports, it would not come without “significant” disruption.
“Certainly, this potential port fee that could come into play would have a significant disruptive impact,” said CSX CFO Sean Pelkey. “If there’s more consolidation at ports that we serve and there’s more volume that wants to come into those ports, that’s a good thing. We can be a part of the solution for that. But it could also result in more congestion as well, which could have significant disruptive effects.”
Congestion on the rail network is a key concern.
During last year’s peak shipping season, service disruptions on the US West Coast coincided with double-digit percentage growth in cargo volume. In October, 795 of UP’s loaded intermodal railcars sat idle for at least 48 hours, according to the US Surface Transportation Board. That same month, UP’s average intermodal train speed fell to 27.9 miles per hour during the week of Oct. 9–16, its slowest week since 2019.
Mediterranean Shipping Co. CEO Soren Toft said at TPM25 last week that it would no longer be economically viable for carriers to call smaller US ports if the Trump plan was implemented, something echoed by UP CEO Jennifer Hamann.
Details please refer to the JOC news.
Source:
Ashe, A. (2025, March 11). Proposed US tax on Chinese ship calls could pressure intermodal networks. Journal of Commerce. https://www.joc.com/article/proposed-us-tax-on-chinese-ship-calls-could-pressure-intermodal-networks-5960849