Supply-Chain Backlogs Turn Chicago Into New Chokepoint

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Supply-Chain Backlogs Turn Chicago Into New Chokepoint
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Chicago is emerging as a new bottleneck in the global supply chain as rail, trucking and logistics operators struggle with a glut of imports from Asia reaching the Midwestern freight hub

.and BNSF Railway Co. have limited container shipments into their overstuffed freight-switching terminals in the Chicago area and some cargo owners and logistics companies have sought to divert shipments by truck or rail to other Midwestern transfer points, raising costs and adding new complications to already-snarled distribution networks.as the economy reopens from Covid-19 lockdowns and consumers head back to stores and restaurants in greater numbers.

The congestion is the latest bottleneck in supply chains that have been knocked off balance this year byy and events such as the grounding of the Ever Given container ship in the Suez Canal in March, backups at the Yantian port in Shenzhen, China, and other incidents that led to ongoing delivery delays.

This week, BNSF said it had begun metering container flows from the ports for two weeks. Typically the railroad meters freight following disruptions caused by events like extreme weather, said a spokeswoman for BNSF, a unit of Berkshire Hathaway Inc. “If you’re moving anything via rail from coast to coast, you’re almost guaranteed it’s got to come through Chicago,” said Maciek Nowak, a professor of supply chain management at Loyola University Chicago’s Quinlan School of Business.

Darin Cooprider, senior vice president for supply chain solutions at Ryder System Inc., said the current suspension and metering are the most substantial restrictions on eastbound goods he has seen for some time, and shippers have few alternatives.

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