One of the so-called truths of the intermodal era is the inevitability of the transition to container, fueled by the “2 for 1” economics of double-stack.
Trailer on flatcar (TOFC) was a dwindling segment, only kept alive through the forbearance of the railroads and a few remaining stubborn adherents to an obsolete technology. So far in 2017, reality is refusing to adhere to the common wisdom.
Domestic container volume over the past six months through August was up 3.6 percent over the prior year, according to the Intermodal Assocication of North America’s Equipment, Type, Size and Ownership database. Volume is up 5.4 percent over the same timeframe for those obsolete TOFCs. What’s going on? The answers to that question could possibly shed some light on a couple of important current issues on the intermodal table: e-commerce and the driver shortage.