Union Pacific Railroad has altered its routing of domestic containers bound for Cincinnati, shifting origins from Los Angeles to terminals in the City of Industry and Inland Empire to cut drayage distances and costs, reports New York's Journal of Commerce.

The change, effective November 20, gives shippers two origin points closer to warehousing and cross-dock clusters in San Bernardino County. UP said the move is intended to streamline shipping and expand options for reaching Cincinnati via Norfolk Southern.

Beneficial cargo owners in the Inland Empire stand to gain from the adjustment, as many already transload international cargo into domestic containers at cross-docks in the region.

However, the new plan complicates the Chicago handoff. Containers must now be trucked 30 to 40 miles between UP and Norfolk Southern terminals, a process known as a cross-town dray. This adds time and cost compared with the previous steel-wheel rail transfer.

Norfolk Southern recently reorganized its Cincinnati intermodal operations, splitting international and domestic flows into separate terminals. The division makes it impractical for UP to send mixed blocks of containers by rail through Chicago.

A UP spokesman said the company prefers steel-wheel transfers but aims to provide optimal transit. Chief executive Jim Vena noted that nearly 1,000 trucks a day already move containers between railroads in Chicago, questioning whether adding more road traffic benefits the country.

Industry sources estimate a cross-town dray in Chicago can cost shippers more than $350 per load, depending on distance and fuel charges.

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