US Shippers Moving More Cargo to Rails

A new survey shows U.S. shippers hope to increase their conversion of cargo from truck to intermodal rail. The JOC report on pricing indices for road and intermodal transport shows that railroads will have to fight for that cargo, thanks to trucking motor carriers that are able to offer competitive pricing.

According to a recent Wolfe Research survey of more than 600 supply-chain managers whose aggregate transportation budget exceeds $10 billion, despite low fuel prices and overcapacity in the over-the-road segment, expectations for intermodal volume growth rebounded in the first quarter to their highest level in one-and-a-half years. Looking ahead, shippers told the New York-based transportation research firm they expect 14 percent of their total over-the-road volumes to go through intermodal in five years.

“Over the longer term, we expect the rails to take market share from trucks, given: 1) cost savings, even at reduced fuel prices; 2) political pressure to divert freight from increasingly congested highways; and 3) improving rail capacity and service levels over time,” Wolfe Research reported. Pricing is down industry-wide and competition for intermodal cargo is very steep. CFR Rinkens sets itself apart from the competition by relying on an established and dependable network of hubs to meet the rising demand for intermodal cargo, offering clients competitive rates with stellar customer service.