Domestic Intermodal Container Market Share by Railroad and IMC
The truckload marketplace is a highly fragmented market with 700,000 motor carrier companies, with 91.0% operating 6 or fewer trucks and 97.3% operating fewer than 20 trucks.
Conversely, 53' domestic intermodal has a handful of majors, with maybe another 25 to 30 "real" contenders operating in the 53' domestic intermodal space.
Understanding who the intermodal contenders are and how a shipper can tap into 100% of the available capacity is key to successfully optimize intermodal within your logistics and supply chain strategies.
To continue, not all IMC's (intermodal marketing companies) have the ability to access the entire fleet of 53 'containers. Also, not all IMC's tap into the ISO re-positioning market for additional capacity found with 20' and 40' ISO containers, which is in addition to the container fleets listed below.
The key to unlocking the treasure chest of intermodal capacity starts with the following two charts on private and public owners of intermodal containers:
As indicated above, the total number of domestic private and rail owned 53' intermodal containers currently stands at 254,866. The BNSF railroad does not own containers, making this railroad essentially the private box owner railroad. JB Hunt, Schneider, Swift and a few smaller private fleets operate on the BNSF network. This also makes it easier for shippers to identify with these brands and access their capacity, as demonstrated in the article The Best Intermodal Companies (And How To Choose).
The Union Pacific, Norfolk Southern and CSX own containers that move across all three networks through either steel wheel or rubber tire interchanges between the different Class I railroad ramps to traverse North America. These railroads own their own boxes in the EMP and UMAX containers, but they also run the Hub and XPO private owned containers.
The result of the divisions described above is roughly 50% of the containers run on the shared network of the UP, NS and CSX, while the other 50% is serviced through the BNSF network.
The importance of understanding the box ownership and the railroad network the boxes operate within answers the questions of capacity, pricing and transit. There are a number of examples on all three topics, but for the brevity of this blog will share just a couple.
Companies, such as InTek Freight & Logistics and SunteckTTS, are non-asset IMC's that access all boxes under the Total Box Fleet chart through their direct relationships with the Class I's, private box IMC's and ISO box alliances. There are a number of similar IMC's. Many times Class I's will recommend and introduce a shipper to an IMC when contacted.
An example where routing / railroad network impacts pricing is Salt Lake City. As the intermodal network map below indicates, only the Union Pacific operates an intermodal ramp in the city. Therefore, the UP has a more competitive product for shippers having freight that either originates or terminates in Salt Lake City because of the huge dray advantage it has over other intermodal offerings.
An example on routing for service draws into mind the fires in LA a couple of years ago. The two railroads servicing the market have different rail routings in the city. The result was one Class I Railroad could get in/out of LA, while the other suspended operations until the fires could be controlled near their tracks.
Again, there are several other examples, so do the homework and be sure to include intermodal marketing companies (IMC's) that can support all networks or bring in multiple IMC's that support specific networks to ensure best transit, value and diversification.
Also, below are additional blogs to explore further detail on intermodal topics discussed above:
- What is an Intermodal Marketing Company
- Cost of Intermodal Transportation Services (Rates, Fees & Variables)
- Defining Asset & Non-Asset Intermodal Providers - Advantages of Both
- The Secret Behind the "Asset" Based Intermodal Providers
For more on the intermodal industry, we would recommend the Intermodal Association of North America (IANA) website.