June 18, 2008
Source: The Journal of Commerce, K-Line, BDP Transport
Note: At this time, several Class I US Railroads and K-Line have declared Force Majeure or issued cargo receipt restrictions.
Flood damage to Midwest
freight operations continued to spread even as storms eased
up in recent days.
The Army Corps of Engineers has closed 14 upper Mississippi
River locks to barging, covering 315 river-miles. Meanwhile,
truckers find many secondary highways still closed in the region,
causing long detours around flood zones or lost business from
area shippers, and Iowa officials say the floods "decimated"
the rail network there.
Although flood waters were receding from the streets of Cedar
Rapids, a major commercial center for Iowa, and Iowa City, authorities
braced for a new wave of damage in the state's southeastern
corner as flood crests moved on Keokuk.
For trucking, earlier closures were lifted from parts of east-west
Interstate 80 in Iowa, but numerous state highways across the
state as well as some interstate ramps remained closed. New
flooding closed highway bridges crossing the Mississippi River
at Burlington and Fort Madison, and curtailed bridge traffic
at Keokuk.
Farther south, Norfolk Southern Railway has shut down operations
in the area of Hannibal, Mo., and levee breaks have flooded
some parts of Illinois.
The Iowa Department of Transportation cited "reports of
major railroad bridges either entirely or partially swept away
by floodwaters in Waterloo, Cedar Rapids, Dunlap, Liscomb and
Marshalltown; many smaller bridges are totally destroyed or
damaged."
It said while railroads have already repaired some flood-damaged
track, numerous washouts are visible while others are still
hidden by remaining high water.
Total rail damage for that state, the agency said, will probably
top that suffered during the Midwest floods of 1993.
Morgan Stanley analyst William Greene said rail traffic has
been slowed across the region, affecting traffic through the
key hubs of Chicago and Memphis. He said Union Pacific Railroad
has been hardest hit, followed by BNSF Railway and Canadian
National. Numerous short lines have also suffered significant
damages or lost revenue.
-- John D. Boyd, Traffic World



