Domestic Intermodal May Solve Empty Container Issue

Intermodal freight transport options are rising in popularity. According to a presentation by Beth F. Whited, EVP and chief marketing officer at Union Pacific Railroad, at the Pulse of the Ports conference last week, intermodal is growing faster than rail, and the company is investing financing to grow intermodal facilities. The growth is driven by both domestic and international demand for intermodal.

“Rail volume is up this year about 1%, so it is relatively flat,” Whited said at the conference. “If you look at intermodal, seven-day car loadings are up 6% year-over-year. We are seeing strength in international intermodal, but domestic intermodal [is also] growing. We are seeing the impact of ELDs in the US.”

This year, Whited expects that growth of intermodal transport will continue to grow, especially if the early months of 2018 is an indicator. “Coming in to 2018, we are really expecting the impact to be 5%, and it is much more intense than that,” she explained. “We consider our domestic fleet on the container front to be sold out. There has been a lot of demand for intermodal this year, and I think that is coming from truck tightness. We will continue to focus on investment in our container fleet.”