Insights - September/October 2017 - 31
Cross-Border, Mid-Range
Intermodal Markets Could Spur
More Intermodal Growth
Intermodal could capitalize on additional growth
opportunities in the cross-border trade and in mid-range freight
lanes, colloquially known as the "donut hole," EXPO speakers said.
In two separate panels, speakers explained the promise and
potential barriers arising from the current NAFTA negotiations
and the tapping of U.S. markets where intermodal has little
presence today. The mid-range market of 1,000 to 2,000
mile moves represents just under 15 percent of intermodal
today. Longer, often transcontinental trips, and shorter runs,
predominantly in the East, dominate the market, based on Gross
Transportation Consulting statistics.
Both opportunities beckon for Kansas City Southern,
whose vice president of intermodal, Erik Bo Hansen, offered the
perspective of a north-south carrier with both U.S. and Mexican
rail operations.
"We believe NAFTA opportunities will be there," he said. "KCS
can play a role. We need to continue close cooperation with all the
Class Is [railroads]. We have joint products with nearly all of them."
At the same time, he said cross-border traffic has to
overcome challenges that are created when freight moves off the
rails at Laredo, Texas. On the positive side, he noted opportunities
to connect markets on both sides of the border whose total travel
distance is in that mid-range market target.
Luis Hernandez, intermodal vice president for Ferromex, also
was optimistic about NAFTA-related growth potential. He cited
several factors that currently favor Mexican highway carriers over
intermodal interests. They included higher gross vehicle weight
allowances in Mexico, large trucking investments by Mexican
businesses and freight activity in the Laredo area that is being
slowed by the reluctance of customers to give up traditional
cross-border freight management relationships.
Analyst Tony Hatch, a panel moderator, said railroads are seeking
to capitalize on opportunities such as moving more corn to Mexico.
Those shipments are part of the three-country NAFTA trade
discussions, which also have tackled issues such as country of
origin labeling, a subject that vexes automobile manufacturers
whose intermodal use for parts shipments complements
northbound finished vehicle moves.
FROM
THE
START TO
THE FINISH:
More Options
More Control
More Confidence
schneider.com
SCHNEIDER INTERMODAL DELIVERS IT ALL
September/October 2017 | Intermodal Insights
31
http://www.schneider.com
Table of Contents for the Digital Edition of Insights - September/October 2017
IANA News
EXPO Attendees Encounter Better Market, Technology Promise, More Show Features
Passion, Professionalism among Wide Range of Qualities Intermodal Employers Stress
Sleep Apnea, Fatigue Continue to Be Key Safety Concerns
Freight Report
Intermodal Prospects Brighten Despite Disruptions, Participants Say
Intermodal Technology Efforts Gain, More Coordination Needed
International Market Shifts Force Providers to Adjust
Cross-Border, Mid Range Intermodal Markets Could Spur More Intermodal Growth
As ELD Compliance Date Approaches, EXPO Panelists Stress Driver, Technology Implications
Committees Report Progress on Recommended Practices, Safety, Other Issues
New Approaches to Safety
Government News
Intermodal Information Services News
People News
Welcome New Members
Intermodal Calendar
Insights - September/October 2017 - Cover1
Insights - September/October 2017 - 2
Insights - September/October 2017 - 3
Insights - September/October 2017 - IANA News
Insights - September/October 2017 - EXPO Attendees Encounter Better Market, Technology Promise, More Show Features
Insights - September/October 2017 - 6
Insights - September/October 2017 - 7
Insights - September/October 2017 - 8
Insights - September/October 2017 - 9
Insights - September/October 2017 - 10
Insights - September/October 2017 - 11
Insights - September/October 2017 - 12
Insights - September/October 2017 - Passion, Professionalism among Wide Range of Qualities Intermodal Employers Stress
Insights - September/October 2017 - 14
Insights - September/October 2017 - 15
Insights - September/October 2017 - 16
Insights - September/October 2017 - 17
Insights - September/October 2017 - 18
Insights - September/October 2017 - Sleep Apnea, Fatigue Continue to Be Key Safety Concerns
Insights - September/October 2017 - 20
Insights - September/October 2017 - Freight Report
Insights - September/October 2017 - 22
Insights - September/October 2017 - 23
Insights - September/October 2017 - 24
Insights - September/October 2017 - Intermodal Prospects Brighten Despite Disruptions, Participants Say
Insights - September/October 2017 - Intermodal Technology Efforts Gain, More Coordination Needed
Insights - September/October 2017 - 27
Insights - September/October 2017 - International Market Shifts Force Providers to Adjust
Insights - September/October 2017 - 29
Insights - September/October 2017 - 30
Insights - September/October 2017 - Cross-Border, Mid Range Intermodal Markets Could Spur More Intermodal Growth
Insights - September/October 2017 - 32
Insights - September/October 2017 - As ELD Compliance Date Approaches, EXPO Panelists Stress Driver, Technology Implications
Insights - September/October 2017 - Committees Report Progress on Recommended Practices, Safety, Other Issues
Insights - September/October 2017 - New Approaches to Safety
Insights - September/October 2017 - Government News
Insights - September/October 2017 - Intermodal Information Services News
Insights - September/October 2017 - 38
Insights - September/October 2017 - People News
Insights - September/October 2017 - Welcome New Members
Insights - September/October 2017 - 41
Insights - September/October 2017 - 42
Insights - September/October 2017 - 43
Insights - September/October 2017 - Intermodal Calendar
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