FREIGHT RAIL INTERMODAL KEY FACTS

• Intermodal moves containers via rail, truck, and ship without unloading.
• E-commerce and trade make it a top rail traffic category.
• Railroads invest billions in terminals, tech, and track upgrades.

Rail intermodal combines shipping containers and truck trailers transported by rail, often with truck or water transport at terminals. It efficiently moves various goods, including retail products, industrial items like auto parts, and agricultural goods such as grain.

Collaborating with other transportation providers, freight railroads move nearly 59 tons of freight per American annually. Chicago and Los Angeles/Long Beach lead in intermodal volume. Benefits include:

• Reducing Emissions: Railroads are 3-4 times more fuel-efficient than trucks. This leads to a 75% average reduction in greenhouse gas emissions when freight is moved by rail.
• Easing Infrastructure: Intermodal trains cut road congestion and costs. They do so by transporting hundreds of containers otherwise moved by truck. This reduces the need for new roads and lowers maintenance expenses.
• Powering Global Trade: U.S. firms use intermodal for global connections, with half of rail intermodal volume involving imports and exports. International trade is anticipated to grow.
• Solving Truck Challenges: Trucking companies struggle with hiring and retention. However, these challenges are reduced with rail intermodal, removing millions of trucks from highways each year.

Rail investments helped create the world’s most advanced intermodal network and powered a partnership with trucks.

Trains and trucks have evolved from competitors to essential partners in America’s modern intermodal freight network. Together, they create a more efficient and cost-effective transportation system. Freight rail plays a crucial role in long-distance shipping. Meanwhile, trucks provide the flexibility needed for short-haul connections, moving goods between manufacturers, warehouses, and intermodal facilities.

A major driver of this collaboration is freight rail’s continuous investment in infrastructure and technology. This investment has fueled intermodal growth and strengthened the overall network. Railroads have expanded track capacity, raised tunnel heights, and developed intermodal terminals—including inland and near-dock facilities. As a result, container transfers between ships, trains, and trucks have improved. Additionally, these investments introduced advanced crane technology, new intermodal car types, and modernized locomotive fleets. This has enhanced efficiency and reliability.

Intermodal innovation has made freight rail more competitive with all-truck movements. Unlike trailers, containers can be double-stacked, which ensures sufficient traffic density to keep costs low. Additionally, new gate and optical scanning technology speeds up truck transfers through intermodal facilities. This reduces emissions and congestion. By expanding intermodal access to smaller shippers in underserved markets, rail is further integrating with trucking to meet evolving customer needs.

As freight demand is expected to grow by 30% by 2040, the intermodal network will become even more critical. By leveraging the unique strengths of both trains and trucks, this partnership will continue to support American businesses, consumers, and the broader economy. Consequently, it ensures the smooth and sustainable movement of goods across the country.

Rail intermodal’s success has a long history.

Intermodal transportation has revolutionized the freight rail industry, transforming it from a traditional bulk hauler into a key player in global commerce. Enabled by regulatory reforms in 1980, railroads have invested heavily in intermodal infrastructure, technology, and services. As a result, freight transport is more efficient, cost-effective, and adaptable.

This shift has allowed railroads to seamlessly integrate with trucking and maritime industries. Thus, creating a more flexible and resilient supply chain. By leveraging double-stacked containers, advanced logistics, and streamlined operations, intermodal has redefined how goods move across the country and around the world.

• Piggybacking: “Piggbacking,” or “circus style” loading, began in 1872 when P.T. Barnum’s circus used crossover plates to move wagons onto trains via a single ramp. This saved time and effort. In 1936, the Chicago Great Western Railroad adapted this method by modifying truck trailers for rail transport, marking the start of commercial intermodal freight.
• Container Intermodal Service: The modern intermodal system emerged with the invention of the shipping container. In 1952, Alaska Steamship Company adapted World War II ships to carry containers. In 1956, Malcom McLean’s Sea-Land standardized container transport across ships, railroads, and trucks. This innovation streamlined cargo handling, reducing costs and delivery times. It shaped today’s global supply chains.
• Double Stacking: Early rail container transport was inefficient due to limited cargo capacity per train. In 1977, Malcom McLean and Southern Pacific Railroad tested the first double-stacked intermodal railcar. This breakthrough became widespread by 1980. Railroads then upgraded tunnels, clearances, and tracks to accommodate these trains, which carry as much freight as hundreds of trucks. With rail being four times more fuel-efficient than trucks, double stacking has boosted efficiency while reducing greenhouse gas emissions.
• Intermodal Terminals: Rail terminals date back to the 19th century and were converted into intermodal facilities by 1960 with the rise of container shipping. Modern intermodal relies on strategically located terminals where freight transfers between modes. Railroads have invested billions in expanding these facilities, adding advanced equipment like GPS-enabled cranes for quick transfers. With over 180 intermodal terminals in the U.S., rail has become a competitive option for domestic freight. Consequently, it reduces road congestion and improves shipping times.

Domestic Growth & Technology Enhancements

In 1989, trucking magnate Johnnie B. Hunt partnered with Santa Fe Railway to move truck trailers on flatcars, advancing domestic freight transport. Rising fuel costs, driver shortages, and highway congestion have since made rail a competitive alternative to trucking, even for short-haul shipments. In the decades since, railroads have invested in zero-emission electric cranes for faster, cleaner container transfers. They also implemented optical scanners and automated gates to reduce truck idling and enhance security at terminals.