BIG-BOX BONANZA

Intermodal is the fastest-growing freight sector for railroad industry traffic and revenue growth. In 2013, the US Class I roads originated 12.8 million units worth $16.5 billion in revenue, surpassing the record peak volumes of 2006, 12.3 million units and revenues of $8.8 billion. The Association of American Railroads recently reported that intermodal surpassed coal in revenue dollars as a percent of the whole, 23% to 20%. For BNSF and Norfolk Southern, the two largest intermodal rail carriers, intermodal now represents nearly 50% of traffic volume. Rail intermodal has grown much faster recently in the eastern US than in the western because the market is larger, less developed, and in the truck-competitive distance range. The key to success in intermodal operations is velocity, and there's more than one way to move a box. Railroads are not naturally nimble networks, so creating and sustaining fluidity will require considerable outside-the-box thinking, especially for managing another winter of discontent.