Editorial: Intermodal's Growing Importance
Click here to write a Letter to the Editor. Intermodal has come a long way in its relatively short life, and now involves more than 13 million truck shipments a year, according to the latest data. 
And, ATA’s Winter Leadership Meeting was told last week, intermodal volume will account for fully half of all the revenue of the Burlington Northern Santa Fe Railway by 2007. Intermodal, where freight moves between trucks, ships and trains, already provides more revenue for the rail industry than its historical chief product: coal. There were more than a few interested looks in the audience last week when Patrick Quinn, president and co-chairman of U.S. Xpress Enterprises, told the audience that BNSF was his fleet’s “largest owner-operator.” Quinn, who is also 1st vice chairman of American Trucking Associations, said his company only began to utilize intermodal two years ago, but it already accounts for 10% of U.S. Xpress’ more than $1 billion in annual revenue. “I can’t imagine where we’d be without intermodal,” Quinn told a panel discussing “The Changing Face of Truck-Rail Intermodal” on Feb. 7. John Hickerson, BNSF’s vice president of domestic intermodal, detailed how the adversarial relations between the rail and trucking industries had to give way to new market realities: shippers demand efficient and speedy delivery, and the best way to deliver it often involves intermodal moves. Hickerson quickly established credibility with the audience, based in large part on his extensive background in the trucking industry — most recently as president of Con-Way Southern Express. While hauling commodities usually provides more revenue for railroads, Hickerson said, it is a mature business that offers little growth. The traffic “growth is coming from” consumer products and manufactured goods, which make up the bulk of intermodal freight, he said. U.S. and Canadian intermodal freight volumes have grown by almost 45% since 1995 and reached 13.16 million containers and trailers last year. The two other panelists, Dave Manning of Tennessee Express and Thomas Ryan of RoadLink USA, explained the key role played by their piece of intermodal — namely the first and last miles of long hauls, connecting shippers with the rail and marine networks. Considering that intermodal was originally designed as a way for the railroads to compete with trucking for expedited freight, it’s amazing to see how its growth has bound the two industries into a partnership to move this freight. This story appeared in the Feb. 14 print edition of Transport Topics. Subscribe today.
And, ATA’s Winter Leadership Meeting was told last week, intermodal volume will account for fully half of all the revenue of the Burlington Northern Santa Fe Railway by 2007. Intermodal, where freight moves between trucks, ships and trains, already provides more revenue for the rail industry than its historical chief product: coal. There were more than a few interested looks in the audience last week when Patrick Quinn, president and co-chairman of U.S. Xpress Enterprises, told the audience that BNSF was his fleet’s “largest owner-operator.” Quinn, who is also 1st vice chairman of American Trucking Associations, said his company only began to utilize intermodal two years ago, but it already accounts for 10% of U.S. Xpress’ more than $1 billion in annual revenue. “I can’t imagine where we’d be without intermodal,” Quinn told a panel discussing “The Changing Face of Truck-Rail Intermodal” on Feb. 7. John Hickerson, BNSF’s vice president of domestic intermodal, detailed how the adversarial relations between the rail and trucking industries had to give way to new market realities: shippers demand efficient and speedy delivery, and the best way to deliver it often involves intermodal moves. Hickerson quickly established credibility with the audience, based in large part on his extensive background in the trucking industry — most recently as president of Con-Way Southern Express. While hauling commodities usually provides more revenue for railroads, Hickerson said, it is a mature business that offers little growth. The traffic “growth is coming from” consumer products and manufactured goods, which make up the bulk of intermodal freight, he said. U.S. and Canadian intermodal freight volumes have grown by almost 45% since 1995 and reached 13.16 million containers and trailers last year. The two other panelists, Dave Manning of Tennessee Express and Thomas Ryan of RoadLink USA, explained the key role played by their piece of intermodal — namely the first and last miles of long hauls, connecting shippers with the rail and marine networks. Considering that intermodal was originally designed as a way for the railroads to compete with trucking for expedited freight, it’s amazing to see how its growth has bound the two industries into a partnership to move this freight. This story appeared in the Feb. 14 print edition of Transport Topics. Subscribe today.
