INTERMODAL FIGHTING TRUCKING TO KEEP GAINS

INTERMODAL FIGHTING TRUCKING TO KEEP GAINS:

With fuel at very low prices and dry van needs relatively soft for much of the past year, intermodal finds itself on an unfamiliar track—fighting back a trucking market that’s trying to reclaim lost traffic.

We’re hearing concrete examples from some of our carriers, and seeing data, like a report from RBC Capital Markets, describing how some shippers are using trucking to circumvent, or supplement intermodal, especially when they are captive to one railroad. They might truck to a nearby competitor’s ramp, or simply convert rail to truck, when economics make sense.