I f a logistics professional has a less-than- stellar experience with a speci c trucker, they probably will move to another one. “But if someone has a bad experience with intermodal, they often give up on it altogether and go back to moving by truck,” says Christopher Brach, senior vice president and general manager, brokerage with Radiant Road & Rail. Educating shippers on improvements to the intermodal product and addressing why it previously didn’t work as planned can help to work through that stigma, says Brach, who’s also a board member of the Intermodal Association of North America (IANA). For those who have given up on intermodal or multimodal transport (see box above for de nitions), or have yet to use it, now is a good time to give it
INTERMODAL vs MULTIMODAL In general, multimodal contract or bill of lading. Intermodal also refers to multiple modes, but they’re managed with several contracts. refers to multiple modes, with one
a try. Between 1980 and 2024, U.S. freight railroads invested approximately $840 billion—or close to $1.4 trillion in today’s dollars—on capital expenditures and
maintenance expenses related to locomotives, freight cars, tracks, and other infrastructure and equipment, the Association of American Railroads reports. These investments are helping to improve reliability and service consistency. For instance, CPKC’s $100-million expansion of the Patrick J. Ottensmeyer International Railway Bridge in Texas is doubling cross-border trade capacity. “They’re trying to be as truck-competitive as possible,” Brach says. Compared to over-the-road trucking options, intermodal tends to be less expensive by between about 8 and 18%, says Todd Davis, senior vice president, marketing, with STG Logistics. Another bene t: By shifting from over-the-road to intermodal, shippers typically can cut carbon emissions by about 75% while also reducing fuel consumption and highway congestion. Plus, intermodal rates generally remain stable for 12 months, says Taylor Harrington, director, North American intermodal with C. H. Robinson. A committed rate removes some expense volatility. Rail costs are less volatile than truck rates when the market changes, says Chris Hoffmeister, chief commercial of cer and executive vice president with Hub Group. The consistency also makes it easier to budget transportation costs. The exibility intermodal can provide is another bene t, notes Michael Baumgardt, senior vice president of intermodal with Schneider National. Leveraging multiple modes of transportation can help mitigate potential capacity issues in one mode. RAIL MERGERS TAKE OFF One of the most notable intermodal trends of the past few years has been the growing number of mergers. In 2023, Canadian Paci c and Kansas City Southern combined to create CPKC, the rst and only single-line railway connecting Canada, the United States, and Mexico. The average trip from Mexico to Chicago is now up to three days faster than the industry average of seven days, Schneider National reported in July 2025.
October 2025 • Inbound Logistics 27
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