Norfolk Southern seeks to boost its intermodal market share

Norfolk Southern (NYSE: NSC) is planning to add more intermodal service products in the southern U.S. as a way to take volume away from the trucking market, executives said during the company’s second-quarter earnings call on Wednesday, July 29.

Those products, which could be launched as early as the third quarter of this year, include products between the U.S. Southwest and the U.S. Southeast, as well as between the U.S. Southeast to the U.S. Northeast, said NS Chief Marketing Officer Alan Shaw.

“They are a new level of product that is not out there in the marketplace right now, or had not been. We’re confident that…it’s going to help us grow moving forward,” Shaw said.

Railroad executives said NS is seeking to take advantage of higher spot truck prices and tight truck markets in some U.S. regions.

NS’ July volumes are “a pretty strong sequential improvement over June,” and June was a month that experienced high retail spending and rising truck rates and truck tonnage, Shaw said.

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Source: Freight Waves