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FreightWaves: “Brokers face a more complex decision-making process when putting customers on the rails”

Brokers face a more complex decision-making process when putting customers on the rails

Brokerage companies and 3PLs that play in the intermodal segment face a variety of challenges, with the biggest one fairly obvious: do they put their customer’s freight on the rails, or do they put it in the truckload space?

A panel at the Intermodal Association of North America annual exposition in Long Beach, California wrestled with that question. But one thing was made clear early on: given the tight capacity of the intermodal market, the idea that the rails can be some sort of dumping ground when truck capacity is not available is a formula today for problems.  As George Abernathy, the chief revenue officer of FreightWaves—and a former president of Transplace, which was represented on the panel by Tom Sanderson, its executive chairman—said, truck traffic that would be “overflow” generally was “handed off to intermodal.” “But that is not as available today,” he said.

Read more here.

September 19, 2018