Surface Transportation

UP has been focused on capturing a larger share of cargo flowing between Los Angeles and Kansas City, a route where BNSF Railway has maintained an edge thanks to faster transit times and more consistent service. UP believes the new, larger terminal, along with upgrades to infrastructure and scheduling, will close that gap significantly.

Instead of Los Angeles-Kansas City being a block within a larger train to places like Chicago, UP will run dedicated trains between the two cities, reflecting the growing importance of the Midwest city to US commerce.

Changing with the times

UP’ s approach in Kansas City mirrors a February 2023 change at its Global IV terminal in Joliet, outside of Chicago, where all ocean containers traveling to and from the ports of Los Angeles and Long Beach are placed in stacks.

The distinction between international and domestic intermodal is becoming increasingly important across the US. As Norfolk Southern Railway noted in late 2022, domestic intermodal operations face far fewer chassis shortages because providers including J. B. Hunt Transport Services, Schneider National and others own their chassis fleets. By contrast, international cargo relies upon third-party lessors such as DCLI, Flexi-Van Leasing, and TRAC Intermodal to supply roadworthy equipment.

“ A grounded operation provides for the efficient delivery of marine containers to any pool or trucker-owned chassis.”

UP has already gained experience operating grounded terminals. The Twin Cities Intermodal Terminal, opened in 2021, operates entirely with stacked containers due to its smaller volume.

BNSF has also made strides to reflect new realities. Most international cargo traveling through BNSF Logistics Park Chicago and Memphis is grounded. BNSF retained the wheeled model in the Fort Worth terminal while also expanding the footprint to accommodate future surges.

Both railroads are also responding to a fundamental shift in chassis provisioning in the US. Since the pandemic, cargo owners and truckers have purchased or leased their own chassis to reduce dependence on shared pools. This flexibility is especially valuable in merchant haulage, where cargo owners control equipment choices outside the port.

A grounded operation“ avoids the need for flips from pool chassis to private chassis, while freeing up space and managing fluidity, allow [ ing ] us to handle more volume,” UP said in the statement.“ Additionally, by leveraging the UPGo app, drivers can coordinate pickups, including those in stack, to increase efficiency and productivity for drivers and terminal operations.”

email: ari. ashe @ spglobal. com

COMMENTARY

By Ari Ashe

J. B. Hunt wants to do what few have pulled off in longhaul intermodal: achieve 95 % on-time performance. That’ s incredibly difficult for any 2,000-mile haul, but even more so for cross-border freight in Mexico, a journey that requires two railroads, manual customs clearance and a single-track bridge that routinely clogs one of North America’ s busiest trade corridors.

It’ s a daunting task facing the intermodal giant as it handles the first Quantum de México containers in the coming months. J. B. Hunt will team up with BNSF Railway and Grupo México Transportes( GMXT), the majority owner of Mexican railroad Ferromex.

The Quantum product was introduced in 2023 as a US domestic service by J. B. Hunt and BNSF, promising tight delivery windows. According to J. B. Hunt, the service has consistently met or exceeded its on-time targets, although the company declined to provide performance data.

The value proposition behind Quantum is simple: promise shippers reliability and on-time performance in a mode that has struggled with both. Intermodal rail can be fast and dependable, but every few years, service degrades significantly for a multitude of reasons.

“ Most customers have appointment windows, so once we understand their expectations, we design transit and pickup schedules all the way back to the initial tender,” Spencer Frazier, executive vice president of sales for J. B. Hunt, told the Journal of Commerce.“ For Quantum de México, it’ s how our customers define 95 % on time, not Ferromex, BNSF or us.”

The formula can work in the US, where BNSF and J. B. Hunt are closely aligned and can fall back on J. B. Hunt’ s 19,000-truck fleet to make up for rail hiccups. Cross-border service, though, is a different beast.

Nevertheless, the market potential in Mexico is significant. In 2024, Mexico’ s trade surplus with the US for automotive goods hit a record $ 137.8 billion, a 6 % increase from the previous year, according to the US Department of Commerce. Total US imports from Mexico reached $ 505.9 billion, up 6.4 % year over year.

With nearshoring trends gaining momentum, J. B. Hunt’ s competitors are investing aggressively. Last October, Hub Group formed a joint venture with Easo, a leading intermodal operator in Mexico. Schneider National has expanded its relationship with Canadian Pacific Kansas City( CPKC), offering service from Mexico to the US Southeast, and boasts the only single-rail service between Mexico and Chicago.

Getting out of Mexico

One of the most immediate hurdles for Quantum de México is the customs clearance process. Before a container can even be loaded, physical paperwork must

40 Journal of Commerce | July 7, 2025 www. joc. com