How to Respond to Rail Interruptions in Bulk Freight Shipping

Rail service plays a vital role in many bulk freight operations. For both liquid and dry bulk shippers, rail can be an efficient and cost-effective solution to moving high volumes over long distances. But when rail interruptions occur, their impact can spread quickly through the supply chain. Production schedules can slip, deliveries can be delayed, and operations can face serious pressure.

That’s why it’s critical that bulk shippers who utilize rail are prepared for interruptions. Bulk Connection’s emergency freight services can help companies in times of need with bulk truck capacity to fill in the gaps when rail or barge service breaks down.

What causes rail interruptions in bulk freight shipping?

A rail interruption can happen for many reasons including weather-related issues such as hurricanes, flooding, ice, and snow, along with labor disputes and other network disruptions. In some cases, the interruption itself is only the beginning. After the initial event passes, tracks may need to be cleared, railcars may need to be inspected, and damaged equipment may need to be repaired or replaced before freight starts moving again.

For bulk shippers, this is a major issue because rail delays often affect more than transportation alone. A prolonged disruption can impact plant operations, customer commitments, storage capacity, production planning, and inventory availability.

What should shippers do when rail service is disrupted?

When rail service disruptions happen, shippers generally have two choices: wait for service to be restored or find another transportation solution. Waiting it out may work in some situations, but it is not always practical. If the disruption lasts too long, the business consequences can outweigh the cost of taking emergency action.

The next option is to have trucks fill in the gap caused by the interruption. Liquid or dry bulk trucks can receive your loads from the railcars and make their way to your destination(s). This is an attractive option that can get your bulk shipping operation back in motion quickly. There are a few key considerations, however:

• Cost. Just as 1 railcar can carry the equivalent of about 4 trucks, the cost of those 4 trucks is going to be much higher than the cost of 1 railcar. Depending on the cause of the rail interruption, however, you may be reimbursed by the rail provider – making the cost of trucks largely a non-issue. When such reimbursement is not a possibility, some companies try to wait it out rather than pay for the necessary trucks, which brings us to…
• Capacity. If the trucking industry is experiencing a tight-capacity market at the time of disruption, trucks are busy. They’re constantly in motion – not waiting for the phone to ring. Because of this, securing capacity can be a challenge during those times. It becomes much more of a challenge if you try waiting out the interruption until your operation reaches a crisis point where trucks are needed immediately.

5 ways to prepare your supply chain for delays

Some interruptions, like a rail strike, may come with at least a little advance warning. Others like extreme weather events or sudden service disruptions can develop with little to no notice. Either way, companies that already have a contingency plan in place are in a much better position to respond effectively. The following five steps can help strengthen your supply chain against unexpected delays.

1. Keep some safety stock on hand

If you have a “rainy-day” inventory of your products in storage, you may be able to keep freight moving until normal supply lines are restored. That can make the disruption more manageable and give you more flexibility in deciding how aggressively to respond.

2. Build backup sourcing relationships before you need them

If a rail or barge interruption prevents a key ingredient or raw material from reaching your plant, it helps to already have alternate sourcing options lined up. Could another supplier step in temporarily? Could your current supplier ship from a different facility using a different mode? The important thing is to think through these scenarios before an emergency happens, not while you are already in the middle of one.

3. Be ready to shift transportation modes

When rail or barge service is interrupted, flexibility becomes critical. In some cases, product can be transloaded into liquid tankers or dry bulk trailers. In others, it may make sense to move freight by barge, or package it into drums or totes for transport via dry van. The more familiar you are with these alternatives ahead of time, the faster you can pivot when delays occur. Strong relationships with providers across multiple modes can make that transition much easier.

4. Have alternate trucking capacity lined up

One of the biggest risks during a disruption is relying too heavily on a single carrier. If your usual transportation provider is unavailable, you do not want to be scrambling to find help at the last minute. Building relationships with multiple carriers can give you more options. Better yet, working with a bulk freight 3PL that has access to a large carrier network can dramatically expand your reach.

5. Plan for higher costs during emergencies

When supply chain disruptions turn into emergencies, transportation costs often rise quickly. That reality should be part of your planning. Budgeting for contingencies can help you respond more decisively when service is disrupted and alternate capacity becomes necessary.

Why Bulk Connection is a valuable partner during rail interruptions

When normal transportation channels are disrupted, Bulk Connection helps shippers find emergency freight solutions quickly. We have supported our customers through a wide range of rail and barge interruptions since 1987. Because we work with a massive North American carrier network rather than relying on a limited private fleet, we’re able to give shippers access to broader capacity and more transportation options during those critical times.

The following are recent examples of rail and barge interruptions where Bulk Connection sourced liquid and dry bulk trucks and equipment—near and far—to offload affected railcars and barges and keep freight moving.

• A few years ago, the Mississippi River experienced water levels that were at or near historic lows. This caused severe backups on the river as barges were unable to move.
• Almost every winter, there are severe storms that impact rail service across the U.S. Once a storm clears enough for service to continue, the tracks still need to be cleared and tested before railcars can be on the move again.
• Hurricanes wreak similar havoc. Again, you’ll have to wait for the storm to pass, for flooding (if any) to subside, and for the tracks to be cleared. You’ll then need to wait for the railcars to be inspected for damage and either cleared for return to service or replaced, all of which can take quite a while.
• And then you have something that happens all the time: rail lines will regularly change tracks at switching yards to send certain shipments forward while holding others in a container yard. The shipments that are held in the yard can be there for days or even weeks, causing significant disruption.

These are just a few common examples, though there is no shortage of others.

Whatever may happen to rail and barge service, Bulk Connection is at the ready to support your operations with the OTR bulk freight capacity you need. To learn more about how Bulk Connection can support your liquid and dry bulk freight needs, during normal operations as well as disruptions, contact us today.