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6/20/2023
Editor's note: This story has been updated with a statement from STB Chairman Martin Oberman.
A shortage of rail cars used for transporting finished automobiles is delaying deliveries from automakers' factories to U.S. dealerships, various news media have reported in recent days.
The microchip shortage that drove up car prices over the past two years has ebbed and auto manufacturers have ramped up production of new vehicles. However, about 70,000 new cars are ready to ship but are stranded at ports and factories due to a lack of rail cars to ship them, the Detroit Free Press reported last week.
"A person familiar with General Motors' Fort Wayne Assembly in Indiana told the Free Press, 'There are thousands of finished Chevrolet Silverado and GMC Sierra pickups parked in the Fort Wayne area and no rail cars available to ship them to market,' " KBB.com reported yesterday.
The situation is affecting Ford Motor Co. as well, according to FordAuthority.com. The Alliance for Automotive Innovation, of which Ford is a member, has asked the Surface Transportation Board to address the issue, the website reported.
The STB is "very concerned" about the auto industry's concern and is monitoring the situation, STB Chairman Martin Oberman said in an emailed statement.
"These failures of rail service have hit the automotive industry especially hard at a time when it is recovering from the global pandemic and related supply shortages," Oberman said. "I hope the entities involved will work together to resolve this critical situation, which would be a benefit not only to those involved but to the American economy."
Last week, BNSF Railway Co. reported in its "Rail Talk" blog that it is increasing efforts to serve the surging demand for new cars. The Class I has added a dedicated operational design team focused solely on improving automotive velocity and service. To learn more about BNSF's efforts, click here.