Shipping & Freight News

For decades, intermodal transportation has played a crucial role in moving freight efficiently across the country. Yet, as the logistics industry faces new challenges, the role of refrigerated rail and intermodal marketing companies (IMCs) continues to evolve. While intermodal transport has seen its ups and downs, its potential remains strong, especially as capacity shifts and market conditions change.

Intermodal marketing companies (IMCs) have been instrumental in shaping the rail brokerage landscape. Historically, these companies were pioneers in proving the cost-effectiveness of moving freight via rail rather than by truck. In the early days, many shippers doubted that intermodal transport could be a viable alternative, particularly in terms of cost and reliability. However, as the industry progressed, innovations such as containerization and double stacking revolutionized the economics of rail transport, providing significant cost savings and efficiency gains.

“Back then, the tough part of selling it was nobody believed it,” says Steven Golich, President and CEO of Alliance Shippers, Inc. “Nobody believed that you could get a piece of freight from Chicago to LA for less money than you could on a truck.”

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While intermodal transportation was once significantly cheaper than trucking—often by as much as 30%—today, that price gap has narrowed. The trucking industry has been highly competitive, adjusting rates and increasing capacity to match demand. This has forced intermodal providers to be more agile in how they position their services. However, despite the shrinking price differential, intermodal remains a key player in long-haul freight movement, particularly in refrigerated transport.

During economic slowdowns, shippers tend to shift more freight to trucking due to its flexibility and immediate availability. However, when capacity tightens and rates increase, intermodal can become a more attractive option once again.

One of the biggest challenges for intermodal providers is ensuring consistent service and reliability. While rail service has improved in recent years, past bottlenecks and inefficiencies have made some shippers hesitant to rely too heavily on intermodal solutions. That said, the industry has made significant progress in optimizing rail operations, and many providers are focused on delivering consistency and stability to their customers.

The pandemic created unprecedented disruptions in supply chains worldwide. Initially, demand plummeted as economies shut down, but once recovery efforts began, the logistics industry struggled to keep up. In response, companies invested heavily in expanding capacity—purchasing more containers, chassis, and equipment to handle the surge. However, as demand has since leveled off, the industry now finds itself with an overabundance of capacity and not enough freight to fill it.

The upside to this market correction is that rail service has been greatly improved. With less congestion and greater efficiency, intermodal rail is now offering some of the best service levels seen in years. As businesses begin to regain confidence in the stability of rail networks, we may see a resurgence in intermodal shipping, particularly for refrigerated goods that require reliable, long-haul transportation.

“Rail service has never been better,” says Golich. “It’s fluid, it’s faster. The railroads took the opportunity to clean things up, improve fluidity in their terminals.”

Looking ahead, the success of refrigerated rail will depend on how well intermodal providers can adapt to changing market conditions. While trucking remains dominant for temperature-sensitive freight, intermodal options continue to offer an attractive alternative for longer hauls where cost savings and sustainability are priorities.

While the road ahead may still hold challenges, intermodal transport remains a vital component of the logistics industry. By leveraging past innovations and continuously improving service, refrigerated rail can remain a strong competitor in the modern supply chain landscape.

As the supply chain continues to evolve, having a knowledgeable and reliable logistics partner is essential. Triple T Transport understands the complexities of modern shipping and works closely with shippers to navigate market shifts, optimize freight strategies, and ensure cost-effective, reliable transportation solutions. Whether you’re looking to strengthen your supply chain or need expert guidance on the best shipping options, Triple T Transport is committed to delivering results that keep your business moving forward.