In the midst of all the talk of a railroad merger and continued slowness in the freight market - let alone the, let's say "interesting" trade climate, this year in intermodal has been marked by improved service offerings to solidify the mode as a preferred option for shippers now, and in the future. The class 1 railroads have spent a 2025 filled with freight uncertainty working on solutions that streamline service and make it a more attractive choice for companies moving freight throughout North America.
The railroad merger's service promise
When Union Pacific and Norfolk Southern announced their intention to merge in July, forming Union Pacific Transcontinental Railroad, UP CEO Jim Vena pointed to service as a primary driver - and benefit - of the combination. The argument is multi-pronged, but it boils down to the idea that a merged UP-NS offers coast-to-coast shipping without the need for an interchange in Chicago or another middle-of-the-country city.
The upshot of that difference would be potentially faster service and lower rates, as well as a more streamlined process with loads staying within one carrier (and one system) throughout its entire journey across the U.S. On the business side for these railroads is the idea that becoming a single, $200 billion entity better positions it (and the industry) for competition and inroads against over-the-road providers.
A new UP-NS intermodal gateway
With the merger as an ongoing backdrop, UP and NS announced in September the opening of a new intermodal gateway, originating and terminating in Louisville, to better connect markets west of the Mississippi to the Midwest - and beyond. The service is bi-directional and interchanges between UP and NS in Kansas City (using UP's new Kansas City Intermodal Terminal). Markets served include:
- Los Angeles
- Lathrop
- Seattle
- Portland
- Salt Lake City
- Houston
Once again, the goal is to streamline intermodal movement and increase transit competitiveness (i.e. speed) versus truck, which holds the lion's share of the freight market. It's also meant to increase intermodal options in markets that have perhaps been underserved.
BNSF and CSX do transcontinental, too
Stopping short of a merger - and in fact, shutting down merger talk - BNSF and CSX announced a suite of new offerings in August to connect their networks from coast to coast. The announcement listed services including:
- Direct domestic intermodal between Southern California and both Charlotte, NC and Jacksonville, FL
- A direct connection between Atlanta and Phoenix
- New direct international intermodal between the Port of New York and New Jersey, the Port of Virginia (Norfolk), and Kansas City
Officials from these railroads argued against the need for a merger by pointing out the ability to leverage partnerships to create seamless connections, something they say this service does. The idea behind these routes is both truck competitiveness and competitiveness in the intermodal space - with the railroads highlighting the collaboration and the flexible options these new solutions provide.
CPKC goes north, south, east and west
Canadian Pacific and Kansas City Southern were the most recent railroads to merge in the U.S. before the pending UP-NS merger - forming CPKC. The line is noted as the only single-line railway to connect North America north to south (and south to north), with service between Canada, the U.S. and Mexico.
In addition to that distinction, CPKC continues to tout its Mexico Midwest Express, with truck-competitive service between, you guessed it, Mexico and the Midwest (Chicago in this case). And new in 2025 is a partnership with CSX known as the Southeast Mexico Express, which connects Mexico, Texas and the Southeast U.S. (including cities like Atlanta and Jacksonville).
Investing in infrastructure
All the American class 1 railroads have continued to work on infrastructure to step up service in 2025 and beyond, learning lessons from a difficult pandemic peak period. Beyond the expanded connectivity and partnerships, these railways have opened new terminals, added and updated tracks, built bridges, added locomotives, upped their technology game and more - all in the name of offering a better alternative to truckload and keeping not only those shippers who already use intermodal regularly but also getting those willing to give it a try, to stick.
These improvements have shaved intermodal transit times to truck-competitive on a number of lanes. And even for those that still take a bit longer, shippers get from added certainty with fewer delays. These benefits are on top of the consistent 10-15% savings intermodal offers vs. truckload along with capacity and environmental benefits.
If all this sounds like a good reason to try out intermodal again, or for the first time, at InTek Logistics, it's what we do - so we're happy to help. Just fill in our request a quote form, and we'll go over how intermodal can work for your business, whether it's converting some or all of your shipping strategy. For more information about InTek Intermodal, or the logistics and supply chain space in general, check out our Freight Guides.
