North American Railroads: Driving intermodal growth through innovation and resilience

The rise of rail: Intermodal growth and shifting trade dynamics

North American intermodal logistics is undergoing a significant transformation, driven by a mix of technological advancements, shifting trade policies, and evolving supply chain strategies. Railroads are making strategic infrastructure investments to offer more flexible, reliable service and capture a greater share of over-the-road (OTR) freight.

In 2024, intermodal freight volumes experienced a strong year, up by 8.5%, according to year-end report by Intermodal Association of North America (IANA). This growth was largely driven by a 13.9% surge in international container movements. The primary factor behind this upswing was a 13% increase in containerized imports into the U.S., indicating a rise in demand for foreign goods and potential shifts in consumer preferences and supply chain strategies.

Another key factor driving these shifts is the reconfiguration of trade flows across North America. The nearshoring trend is strengthening freight corridors between the U.S., Mexico, and Canada. According to KPMG’s 2024 Proximity Premium report, nearly 69% of U.S.-serving supply chains are expected to be located in the Americas by 2026, up from 59% currently.

However, alongside this growth, challenges such as cargo theft, terminal congestion, and the demand for real-time visibility are pushing railroads to modernize their intermodal operations.

Railroads are adapting to meet growing demand

To keep pace with rising demand, railroads are making strategic investments in infrastructure, digitalization, and cross-border and domestic intermodal solutions. These advancements are aimed at improving transit times, optimizing freight capacity, and delivering truck-like service levels. Few notable examples include:

• CP-KCS Merger: The first single-line railway connecting Canada, the U.S., and Mexico, enhancing network efficiency and reducing cross-border transit times.
• Falcon Premium Intermodal Service: A collaboration between Canadian National, Union Pacific, and Grupo Mexico to streamline intermodal operations across North America.
• Tehuantepec Isthmus Rail Corridor: Mexico’s 300-km rail project connects the Pacific and Gulf coasts, with 10 industrial parks to support manufacturing and logistics, offering a competitive alternative to the Panama Canal.
• International Railroad Bridge Expansion: The new bridge between Laredo, Texas, and Nuevo Laredo, Tamaulipas, doubles rail capacity and enables simultaneous bi-directional train operations, reducing congestion and improving trade flow.
• Increase of rail usage at major terminals: Port of Los Angeles and Long Beach has expanded its on-dock rail capabilities to reduce truck congestion and improve cargo flow.
• Technological innovation: The adoption of advanced technologies in rail freight, such as automation, AI-driven predictive analytics, and digital tracking systems powered by IoT, has enhanced operational efficiency and service reliability

Challenges facing railroads in a growing intermodal market

Despite these advancements, railroads must address operational challenges to fully capitalize on intermodal growth

Inefficient Asset Utilization: High-demand regions often face capacity shortages, while idle assets sit unused elsewhere. Without precise demand forecasting, real-time tracking, and proactive maintenance planning, rail operators struggle to position assets effectively. This leads to service disruptions, increased costs, and reduced operational efficiency.

• Terminal Bottlenecks: Railyards and terminals often lack real-time visibility into inbound pipelines, making it difficult to optimize workflows. Inefficient modal transitions—whether to truck, ship, or another rail line—create delays, reducing overall reliability and predictability.
• Limited Visibility and Coordination: Gaps in Automatic Equipment Identification (AEI) tracking infrastructure results in delayed, fragmented updates that lead to outdated ETAs and disrupted logistics. Additionally, limited visibility across stakeholders—Intermodal marketing companies (IMC’s), shippers, drivers, and rail carriers—hampers coordination.
• Cargo Security Risks: Growing cross-border trade intensifies security concerns, with theft and tampering posing risks to high-value shipments. Inadequate monitoring and tracking further exacerbate these vulnerabilities.

Empowering North American railroads to be technologically and operationally future ready

As intermodal freight demand grows, railroads must optimize asset utilization, reduce congestion, and enhance visibility to maintain efficiency. Blume Global provides digital solutions that streamline operations and improve supply chain resilience which empowers the intermodal ecosystem.

• Meeting the demand for smarter asset management
  A digital asset marketplace that allows stakeholders to market, reserve, and reposition assets seamlessly with 1800+ asset pools across North America, supporting over 30 asset types.
• Easing congestion at critical rail terminals
  Appointment scheduling platform and an integrated intermodal dray carrier network streamline terminal operations, optimize container hand-offs, reduce bottlenecks, and efficiently transport container freight in and out of terminals.
• Enhancing cargo safety and visibility with real-time IoT insights
  IoT technology consolidates data from a wide array of sensors, providing real-time insights into cargo location and condition.
• Improved asset optimization through street turns
  Street turn solutions help minimize empty miles by intelligently matching inbound and outbound loads, ensuring rail assets and containers are used more effectively.
• Delivering transparency across the intermodal supply chain
  A digital platform that enables shippers, carriers, and IMC’s to track shipments, optimize transit times, make informed decisions and plan more efficiently.

Driving rail intermodal success through innovation

Resilience in intermodal logistics is about readiness—the ability to adapt, optimize, and thrive in a shifting global supply chain. North American railroads are leading this transformation, leveraging advanced infrastructure and digital innovations to meet rising freight demand. With over 30 years of experience supporting Class 1 railroads, Blume Global, a key part of CargoWise Landside Logistics, provides the tools needed to optimize operations, reduce costs, and strengthen intermodal resilience.