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Domestic intermodal service metrics have steadily improved amid weak volume growth . dvande / Shutterstock . com

Shippers , IMCs pleased with rail performance in 2024 : survey

By Ari Ashe

More than nine out of 10 shippers and asset-based and non-asset intermodal marketing companies ( IMCs ) are satisfied with North American domestic intermodal service so far this year , according to a Journal of Commerce Intermodal Service Scorecard survey .

The positive reviews of intermodal business in 2024 are consistent with several metrics reported to the US Surface Transportation Board ( STB ) that show performance is far more reliable than during the pandemic disruption between 2020 and 2022 .

The survey was conducted over six weeks ending June 7 . It included 250 responses from various stakeholders , including more than 190 domestic intermodal shippers .

“ It ’ s a way different story than what it was a couple of years ago when intermodal rail service was slow , unreliable , and frankly an even higher cost than truckload in many lanes ,” one intermodal shipper said in the survey . “ During that period , we probably went from about 10 % to 15 % of our freight on rail to less than 5 %, but now we ’ re back to upwards of 15 %. It ’ s been a blessing so far this year .”

The number of trains holding per week is down , train

speeds are up , and fewer railcars are idling compared with 2020 to 2022 , according to STB data .

For the year to date through June 5 , an average of 19.5 intermodal trains per day were held due to crew problems , mechanical failures , or other safety-related reasons , while an average of 1,076 intermodal cars were idle for more than 48 hours . Both of those metrics are the lowest for the period in four years , according to the STB .

Intermodal trains averaged 30.3 miles per hour year to date through June 5 , down slightly from 30.8 mph a year prior but up from an average of 28.9 mph during the same period in 2022 .

Some 85.6 % of intermodal providers say the railroads are performing better now than at the end of last year , according to the Journal of Commerce survey .

“ It ’ s like night and day compared with two or three years ago .”

“ It ’ s like night and day compared with two or three years ago , and Union Pacific Railroad has really stepped up its game to help us go after business currently on the highway ,” said one intermodal provider .

Tepid domestic volumes

So , if service is more consistent and reliable , why are domestic intermodal volumes still so tepid ?

International intermodal volume is up more than 10 % compared with a year ago through April , according to the Intermodal Association of North America . Domestic

40 Journal of Commerce | July 1 , 2024 www . joc . com