Why are so many Ram trucks parked at Gibraltar Trade Center?

Eric D. Lawrence | Detroit Free Press

If you've driven past the Gibraltar Trade Center this week, you might have wondered whether the closed public market in Mount Clemens was being reborn as an auto dealership.

Rows of what appear to be brand new Ram pickups have been lining the parking lot.

The explanation, according to Fiat Chrysler Automobiles, for so many Ram trucks being stored at the trade center involves a rail-car shortage.

"Due to an industrywide railcar shortage, FCA US is temporarily storing some vehicles at various yards. While the rail network is now showing signs of improvement, we are still working with our shipping providers to find alternative methods to deliver vehicles to their end destinations," according to a company statement.

The issue has been raised before by auto industry groups.

In March, an official with the Alliance of Automobile Manufacturers, a trade group representing a dozen automakers, including FCA, General Motors and Ford, sent a letter to the Surface Transportation Board seeking help.

"Many Alliance members are experiencing substantial consequences due to service declines throughout the North American rail network and will continue to do so until the underlying causes are resolved. Specifically, a serious shortage of bi-level and tri-level rail cars for transporting finished vehicles occurred in February and has worsened in March," according to the letter from Dave Schwietert, the group's executive vice president for federal government relations and public policy.

In April, the Free Press reported on delays for Lincoln Navigator shipments blamed on rail issues.

The National Grain and Feed Association reported its industry's own concerns in March about rail delays in a complaint to the Surface Transportation Board, a federal railroad regulatory agency.

The letter signed by Randall Gordon, the association's president and chief executive officer, raised concerns about the "railroads’ aggressive effort to reduce their operating ratios to impress Wall Street investors and shareholders. This, in turn, has resulted in the systemic shedding of resources by Class I carriers, including locomotives and crews, that has degraded service to unacceptable levels, and resulted in virtually non-existent surge capacity to meet rail customers’ needs."

Read more:

Trump's trade war could threaten US pickup production and jobs

Auto industry touts strong sales, but tariff talk clouds picture

It's unclear whether recent reports of railroads paying significant signing bonuses for rail workers would address some of the issues.

Messages seeking comment were sent to representatives for several railroads.

Susan Terpay, a spokeswoman for Norfolk Southern, sent an email declining comment:

"Norfolk Southern announces 2Q earnings July 25, and until then we can’t comment on any of our business segments."

CSX did not respond.

Patrick Waldron, a spokesman for Canadian National Railway, said any vehicle-shipment related issues CN was experiencing were a "winter issue," with the biggest challenge being the return of rail cars from other railroads.

He noted that the railroad, which serves Ford and GM, is "in a position to assist other people with transportation solutions where we can," and he noted that CN, regarding finished vehicle shipments, is "current with our customers across the state and have been for some time."

Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence. Staff writer Christina Hall contributed to this article.