Insights - January/February 2018 - 12

CAPACITY - from page 10
as quickly as truck rates, Montague said. That is a major
step forward from years past, when it could take as much as
two months for intermodal pricing to adjust to spot market
conditions.
Montague also said that the early 2018 run-up of crude oil
into the $60 per barrel range could push more freight toward
intermodal for cost reasons. There are few indications that the
price of crude will drop very much in the near future, he believes.
Knichel believes over the road truck-to-rail intermodal
conversion could grow through continued education of shippers,
and effective planning to assure seamless intermodal moves.
Opportunity beckons, she said, contrasting 2016 intermodal
with 2018 conditions. In 2016, she said, shippers had ample OTR
truck capacity at competitive pricing, while capacity is tighter this
year.

'Looking for Freight Options'
Hansen, Knichel and Hatch pinpointed technology
opportunities.
"Optimizing oneself with solid online content that ranks
highly on search engines is a good way to get more eyes on your
company and its services," Knichel said. "If customers are new to
intermodal or have never used it before, they are more than likely
looking for freight options [on the internet] already."
Hansen also stressed the importance of customerfacing technology. "Online presence and capabilities will be
increasingly important, with many transport buyers researching

"If customers are new to intermodal or
have never used it before, they are more
than likely looking for freight options
[on the internet] already."
- Kristy Knichel, CEO, Knichel Logistics

and comparing solutions in the online environment, before
even approaching possible providers of those solutions. As an
industry, the railroads still need to invest in this area, in order to
provide transport procurement researchers with a reasonable
amount of information."
There also is technological potential, Hatch added, as
railroads shift their attention on positive train control from the
capital spending needed to finish the projects to the potential
for operating cost savings as "the backbone of the new, digitized
railroad" that helps customers and carriers alike.
Hansen, whose railroad serves both the U.S. and Mexico, said
he believes international trade will grow in 2018, notwithstanding
the uncertainties about the outcome of trade negotiations among
the current NAFTA partners.
NAFTA is a factor, Hatch said, because 42 percent of total rail
traffic is linked to North American trade activity, citing statistics
from the Association of American Railroads. Intermodal itself
accounts for about 40 percent of U.S.-Mexico rail traffic.

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12 Intermodal Insights | January/February 2018

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Table of Contents for the Digital Edition of Insights - January/February 2018