Executive Briefings

Shippers Seek Supply Chain Agility as Costs Rise, Rely More on Intermodal Rail

Rising transportation costs and tight truckload capacity are creating more opportunities for intermodal rail in 2012, according to logistics executives.

"Modal shift is something we see quite regularly," said Joseph Gallick, senior vice president of sales at Penske Logistics, a $2.8bn global logistics company. As truck capacity tightens, "what we're seeing is a willingness and ability [among shippers] to be agile and flexible and consider [new] modes."

"Our domestic intermodal growth this year is up near double-digit," said John Lanigan, executive vice president and chief marketing officer at BNSF Railway. "That gives you an indication of the modal shift and customers looking at that cost and service tradeoff" between intermodal rail and long-haul trucking, he said.

Gallick and Lanigan spoke in a panel discussion at the release of the Council of Supply Chain Management Professionals annual State of Logistics report for 2011.

Intermodal volume rose 5.4 percent to 11.9 million containers and trailers last year, according to the CSCMP report, while rail carloads rose 2.2 percent.

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"Modal shift is something we see quite regularly," said Joseph Gallick, senior vice president of sales at Penske Logistics, a $2.8bn global logistics company. As truck capacity tightens, "what we're seeing is a willingness and ability [among shippers] to be agile and flexible and consider [new] modes."

"Our domestic intermodal growth this year is up near double-digit," said John Lanigan, executive vice president and chief marketing officer at BNSF Railway. "That gives you an indication of the modal shift and customers looking at that cost and service tradeoff" between intermodal rail and long-haul trucking, he said.

Gallick and Lanigan spoke in a panel discussion at the release of the Council of Supply Chain Management Professionals annual State of Logistics report for 2011.

Intermodal volume rose 5.4 percent to 11.9 million containers and trailers last year, according to the CSCMP report, while rail carloads rose 2.2 percent.

Read Full Article