Tech Companies Start Rerouting Chip Supplies as Rail Strike Looms

Technology companies supplying critical semiconductor chips to the economy have started shifting cargo shipments from railroads to trucks with a national freight rail strike looming. The moves are being made, DHL Global Forwarding tells CNBC, in an effort to avoid any pre-strike rail preparations that would force freight rail companies to prioritize cargo.

The tech cargo being sent to trucks include semiconductor chips critical to the high-tech sector and auto industry.

“This is tech cargo originating out of California,” said Goetz Alebrand, head of ocean freight for the Americas at DHL Global Forwarding. Alebrand said there is now more truck capacity than there had been when a rail strike was first threatened in September as a result of fewer containers ships overall coming in to U.S. ports.

Read the source article at cnbc.com