Intermodal providers

UP’s containerized intermodal volume is up 6% in July as West Coast imports grow and the threat of a strike diverts some Canadian international intermodal freight.

Joni Casey played a critical role in the expansion of the Uniform Intermodal Interchange and Facilities Agreement, a set of governing rules over the transfer of containers from one mode to another.

The current chaos playing out in the container market globally doesn’t have to last that long to have some big impacts on North American intermodal, writes Larry Gross.

The issue of whose chassis to use to haul a container remains unclear as more truckers opt to use their own, but ocean carriers and pools also look to supply the market.

The railroad is tackling one of the major pain points at the Atlanta-area terminal after congestion had gotten so bad in recent years that fleets would pay drivers extra just to go into the facility.

Changes in container volumes arriving in a particular port are driven by general economic conditions affecting the overall level of imports and the choice of that port as the import gateway for inland regions, writes analyst Larry Gross.

Ancora Holdings is trying to unseat Norfolk Southern’s current leadership in part because of mistakes it believes the railroad’s executives have made in the intermodal business.

Elevated dwell times are not just a function of a lack of planning on the part of the railroads, but an inevitability that shippers need to consider for planning processes, writes analyst Larry Gross.

Nearby gateways are preparing to handle the diversion of vessels and freight that would have landed at Baltimore at least through May following the port’s indefinite closure.

Some of the 18 container ships that were due to arrive at the now-closed Port of Baltimore over the next couple of weeks are now scheduled for new calls at New Jersey, Norfolk and Philadelphia.

The railroad believes requiring appointments and grounding containers into stacks will improve the flow of trucks through its terminal outside Atlanta.

The port operator has grown its global forwarding footprint to 100 offices, using its network of terminals, warehouses, road and rail to provide greater visibility and control of shipments.

If the Southern California inland point intermodal surge continues into the “danger zone,” then importers might do well to consider taking advantage of alternate routings in the Pacific Northwest and Western Canada, says analyst Larry Gross.

TRAC Intermodal is investing in its fleet and positioning equipment in inland markets that saw the worst chassis shortages in 2021 and 2022, CEO Daniel Walsh told TPM24.

Although the port is losing some intermodal service to the Midwest, demand is surging to core inland cities within the Southeast US.

The railroads say more vessels calling Houston translates into heavier volumes that will help intermodal services from the port gain traction this time.

Simpson will become the first woman to take the top job at J.B. Hunt, something many in the industry expected to happen after she was named president 18 months ago.

While the two companies have a partnership dating back 35 years, the latest transaction strengthens the relationship between the largest intermodal provider in North America and one of the continent’s top intermodal shippers.

In addition to pushing for a leadership change, Ancora Holdings also said NS should not invest so heavily in intermodal under its current strategy and criticized the railroad for changing 180 train schedules last year to prioritize container and trailer business.

Shippers will have another domestic intermodal option between Mexico and the US as cross-border intermodal growth outpaces the overall North American market.

The failure of Mexican customs clearance systems at a national level this week snarled supply chains and may warn of future problems as US-Mexico trade grows. 

The Port of Mobile is looking to boost intrastate rail service with a new intermodal ramp that would give shippers an alternative to using rail from major Southeast ports.

The average cost savings for a shipper choosing intermodal rail over truckload was consistent during 2023 and should be relatively unchanged at least through the first quarter, according to the latest Journal of Commerce Intermodal Savings Index.

North American intermodal functions mainly as a set of regional networks defined by railroad route structures, one of the handicaps for intermodal as it competes against a “go-anywhere” national truck system, writes analyst Larry Gross.

The railroad is eliminating or adjusting service in four cities this month in a move to shift resources to corridors where it believes freight will surge over the next decade.

Domestic intermodal providers have stacked thousands of containers and are warning they will keep capacity out of circulation even when demand picks up unless shippers are willing to pay higher rates.

While down significantly from 2022, the forwarder remained profitable last year as fourth-quarter gains helped dull the full-year impact of sharply correcting global freight markets.

Neither J. B. Hunt nor its shippers anticipated a 6% rise in intermodal volumes in the fourth quarter, but it’s unlikely that will drive higher contract rates in early 2024.

IPI growth could accelerate if external events such as longshore contract negotiations on the East and Gulf coasts or further restrictions on vessels transiting the Panama Canal prompt a significant shift in import volumes to the West Coast.

The Journal of Commerce’s biannual Intermodal Service Scorecard found customers were more satisfied with their domestic intermodal service in the second half of 2023 even as railroads handled more containers in the back half of the year.

While companies that use the crossing at Eagle Pass are seeking to reassure existing and potential customers, competitors using Laredo, where no closures have occurred, are wasting no opportunity to talk up that route’s relative reliability.

Although the 2023 peak season was more muted than during the COVID-19 pandemic, the overall decline was not as severe as some feared.

The move comes after several days of pressure from shipper groups who expressed concerns over the economic impact of the closures so close to Christmas.

With CPKC competitors BNSF and UP unable to send or receive cargo because of the border closures at El Paso and Eagle Pass, they might be tempted to send containers through CPKC’s still-opened Laredo crossing.

Intermodal marketing companies told the Journal of Commerce they are concerned about their ability to sell rail options to shippers if there is a prolonged closure at Eagle Pass and El Paso.

The fundamentals for intermodal demand in 2024 appear to be improving in several important respects, according to analyst Larry Gross, though some adverse long-term fundamentals remain in place.

While the domestic intermodal market may have been in turmoil for the last several years, all stakeholders look ready to support continued growth, writes Ted Prince.

The Blue Ridge Connector will have 18,000 feet of working track and an annual lift capacity of up to 200,000 containers while providing shippers with an all-rail service from Savannah.

The South Coast Air Quality Management District says it will create rules to reduce emissions at Southern California rail yards because Union Pacific insists on including public financing as a precondition for participating in the more collaborative MOU process.

The Class I railroad sees an opportunity to tap growth at the Gulf Coast’s busiest port with new intermodal lanes, while expanding its inland reach from Los Angeles and Long Beach.