Intermodal providers

The deal comes as the world’s largest container shipping company looks to establish a bigger foothold in surface transportation.

The port authority on Wednesday completed an expansion of Inland Port Greer ahead of the opening of the near-dock Navy Base Intermodal Facility (NBIF) at the Port of Charleston later this year.

Executives from CSX and Norfolk Southern say that while the market is no longer as strongly pro-shipper as it was a year ago, conditions have yet to shift in favor of rail carriers.

Domestic intermodal’s share of the US long-haul truck market has risen over the past two quarters, although that resiliency is going to be tested in the months to come, writes analyst Larry Gross.

Tariff concerns and fears of labor unrest helped grow volumes at key ports along the West Coast last month, with the gains coming at the expense of the Northeast and mid-Atlantic.

The latest Journal of Commerce Intermodal Service Scorecard shows how the performance of North American Class I railroads suffered due to congestion caused by high cargo volumes in Southern California and severe weather in the Southeast.

While trucking companies and intermodal carriers believe contract rates will rise this summer, shippers are skeptical given past predictions that have fallen by the wayside.

While tariffs and the trade wars that could result are indeed a serious matter, the direct effects of potential US tariffs on Canada and Mexico on the North American intermodal market would be “relatively minor,” writes Larry Gross.

In terms of raw dollars, intermodal shippers saved an average of $741 per container versus truckload for spot market transactions across the 120 lanes in the Journal of Commerce Intermodal Savings Index, up from $649 one year ago.

A spokesperson for NS says requiring truckers to have appointments to pick up containers at the Chicago facility allows for “stack grooming,” meaning it gives the railroad information in advance on which boxes to make available.

The planned development in Eastern Canada marks the latest stage in a nearly two-year-old partnership between the company and the Class I railroad.

The effort coincides with UP’s plans to open a new terminal in Kansas City, Kansas, in the third quarter of this year that would alleviate pressure on the railroad’s existing terminal across the border in Missouri.

The largest intermodal provider in the US says it’s time for shippers to talk about higher rates for service but understands the shift is not likely to occur until the second half of the year.

The Barstow International Gateway will be a transloading hub where the contents of ocean containers come to be transferred into 53-foot domestic containers to travel inland, ensuring quicker turnarounds of ocean boxes moving back to the ports of Los Angeles and Long Beach.

Projections for North American intermodal will likely be upended by some “black swan” event that isn’t even on the radar right now as there seems to be no shortage of potential hot spots and disruptors looming, writes Larry Gross.

Domestic intermodal providers are frustrated that they’ve been unable to win significant rate increases in contracts in early 2025, but capacity in trucking and rail is still abundant and easy to procure.

Despite the kudos for railroads, some market players question the value of pandemic-era comparisons, suggesting that 2024’s peak season aligns more closely with pre-pandemic trends.

It’s difficult to imagine international intermodal growing much more, if at all, on the US West Coast in 2025.

The considerable intermodal ocean volumes that ordinarily would have moved in 2025 have likely been pulled forward into 2024, writes analyst Larry Gross.

With a prolonged peak season, some non-asset-based intermodal marketing companies are reporting difficulties securing rail-owned containers and slots on trains in Chicago, Portland and Oakland over the past month.

DCLI equipping domestic chassis with GPS fills an information gap on when shippers sit on cargo excessively.

Rail executives assured investors that the availability of labor and other nearshoring opportunities in Mexico will keep North American trade strong, regardless of tariffs.

Rising regional trade along the old Silk Road between China and Europe is driving up containerized rail volume on the middle corridor and the logistics infrastructure is struggling to keep up.

While some shippers say they are still facing a measure of disruption, CSX says it has recovered following a rough patch in keeping cargo flowing through central Florida after hurricanes Helene and Milton battered the state.

The new charges apply to both spot market business originating in Southern California and to contractual agreements when weekly limits are surpassed by shippers using rail-owned containers.

Shippers, brokers and trucking executives at a Traffic Club of Chicago forum all said the long freight downturn isn’t finished — but are hopeful it’s nearing an end.

While intermodal providers increased pricing in Southern California, truckload carriers also raised rates as demand grew with surging port volumes, negating any modal shifts based on budgetary concerns, the latest Journal of Commerce Intermodal Savings Index showed.

A second intermodal option is coming for shippers moving cargo between Mexico and the Southeast US beginning in December.

Despite multiple highly disruptive exterior events, from hurricanes to labor strikes, there has not been an intermodal service meltdown in North America, writes Larry Gross.

As US trade with Mexico grows, railroads see a chance to challenge the dominance of the Mexican trucking industry — if the railroads’ intermodal partners can lock in new business and deliver reliable service.

The completion of initial clearance improvements allows CSX to operate double-stack rail service on a temporary route from Baltimore along its network in Pennsylvania, New Jersey, New York and into the Midwest.

UP’s CEO Jim Vena, during the railroad’s Q3 earnings call, appeared to take a shot at ocean carriers for not informing landside stakeholders sooner about the heavy volumes that landed along the West Coast in recent months.

Frontloading of peak season cargo might have been a factor in why domestic intermodal volumes were higher than expected in the third quarter.

The Class I railroads are acquiring separate sections of a rail line in Alabama and Mississippi, allowing them to launch a new joint intermodal service between Mexico and the Southeast US.

A source with knowledge of Friday’s incident said the UP train was being interchanged to Norfolk Southern Railway, although it’s unclear why the train was stationary in a residential area.

The second-largest US intermodal provider believes a partnership with a large Mexican carrier will present an attractive option for cross-border shippers.

Figuring out why growth in intermodal volumes between Mexico and the US is significantly lagging that of trucking demand will be crucial to unlocking one of intermodal’s biggest growth opportunities, writes Journal of Commerce analyst Larry Gross.

While shippers and intermodal providers agree that rail cargo theft is a problem, there is no consensus about the right solution.

Intermodal providers believe shippers of time-sensitive cargo can rely on rail, but some potential customers need to see more evidence of consistent service, executives told the Journal of Commerce Inland Distribution Conference 2024 (Inland24).

Shipping executives say domestic intermodal rates are set for a rise as trucking pricing expands, but they’re not expecting significant increases.