Insights - November/December 2017 - 26
those levels by the end of the year," Broughton wrote. Individual
rail carriers' third quarter earnings reports showed increases that
were led by Canadian National's 20 percent, joined by a 7 percent
rise at BNSF Railway, 5 percent at CSX and 4 percent at both
Norfolk Southern and Kansas City Southern.
'Very Strong Demand'
"We see very strong demand," said Chris Giltz, senior vice
president of operations at the Evans Network of Companies,
who pinpointed a reason for future optimism. "Going forward,
with the potential for capacity shrinkage due to the [Dec. 18]
ELD mandate, we think demand for freight will be stronger than
capacity for some time to come."
"Intermodal expectations remain strong as tight trucking
capacities should be further impacted by the ELD implementation
in December," said Norfolk Southern's Chief Marketing Officer
Alan Shaw.
Ron Faherty, president of ARL Transport, also focused on the
ELD effect, while reporting a 39 percent rise in October revenue.
"Not a day goes by without us being contacted by an IMC, asking
about capacity and the ELD mandate," he said, while noting his
company's reliance on those devices that already are in place.
IMTS also detailed a nearly 4 percent growth in IMC
intermodal loads.
"We've been able to increase our intermodal bidding activity
and our sales trends have been improving. Right now the market
is favorable, said Scott Malat, chief strategy officer at XPO
Logistics. "The nature of intermodal is that demand is influenced
by external factors such as tight or loose truck capacity, and we
see this mode as a longer-term opportunity."
Multiple industry analyst reports were upbeat.
"Quite simply the freight environment remains robust and the
majority of participants we spoke with believe the strength we
are currently seeing will carry into 2018," said Kevin Sterling, an
analyst at Seaport Global Securities.
"In addition to e-commerce and industrial growth, another
common theme in both North America
and Europe is that transportation
capacity is tight," said John Larkin at
Stifel Nicolaus & Co.
Other factors are at work beyond
changes in trucking capacity.
'Continues to Build
Momentum'
"The U.S. economy continues to
build momentum," said Beth Whited,
Whited
chief marketing officer at Union Pacific.
"Intermodal is being helped by the current tightening in truck
capacity, with opportunities for further growth."
CSX officials on a conference call identified adding new
customers and the opportunity to convert highway shipments to
intermodal as additional reasons for optimism.
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The industry's best
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26 Intermodal Insights | November/December 2017
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Table of Contents for the Digital Edition of Insights - November/December 2017
IANA News
Storms Create Recovery Challenges, Foster Valuable Lessons Learned
Intermodal Benefits from Technology Grow in 2017, Should Increase in Future
Inland Port Projects Advance in East
Optimism Builds for Intermodal Freight
Food Safety Modernization Act Could Help Increase Temp Control Freight
Intermodal Rail Enhancements Continue in 2017, Focused on Service
Government News
International Intermodal News
Intermodal Information Services News
Welcome New Members
People News
Intermodal Calendar
Insights - November/December 2017 - Cover1
Insights - November/December 2017 - 2
Insights - November/December 2017 - 3
Insights - November/December 2017 - IANA News
Insights - November/December 2017 - Storms Create Recovery Challenges, Foster Valuable Lessons Learned
Insights - November/December 2017 - 6
Insights - November/December 2017 - 7
Insights - November/December 2017 - 8
Insights - November/December 2017 - 9
Insights - November/December 2017 - 10
Insights - November/December 2017 - 11
Insights - November/December 2017 - 12
Insights - November/December 2017 - Intermodal Benefits from Technology Grow in 2017, Should Increase in Future
Insights - November/December 2017 - 14
Insights - November/December 2017 - 15
Insights - November/December 2017 - 16
Insights - November/December 2017 - 17
Insights - November/December 2017 - 18
Insights - November/December 2017 - Inland Port Projects Advance in East
Insights - November/December 2017 - 20
Insights - November/December 2017 - 21
Insights - November/December 2017 - 22
Insights - November/December 2017 - Optimism Builds for Intermodal Freight
Insights - November/December 2017 - 24
Insights - November/December 2017 - 25
Insights - November/December 2017 - 26
Insights - November/December 2017 - Food Safety Modernization Act Could Help Increase Temp Control Freight
Insights - November/December 2017 - 28
Insights - November/December 2017 - 29
Insights - November/December 2017 - Intermodal Rail Enhancements Continue in 2017, Focused on Service
Insights - November/December 2017 - 31
Insights - November/December 2017 - Government News
Insights - November/December 2017 - 33
Insights - November/December 2017 - International Intermodal News
Insights - November/December 2017 - Intermodal Information Services News
Insights - November/December 2017 - 36
Insights - November/December 2017 - Welcome New Members
Insights - November/December 2017 - People News
Insights - November/December 2017 - Intermodal Calendar
Insights - November/December 2017 - 40
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