Schneider Moves Eastern Intermodal Business From CSX to Norfolk Southern

Schneider National is shifting its eastern intermodal operations from CSX to Norfolk Southern, making the railroad its exclusive eastern partner alongside Union Pacific in the West. The deal was announced the same day Schneider reported third-quarter earnings. Schneider EVP Michael Baumgardt said the decision followed a lengthy review of network reach, train frequency and proximity to population centers. Norfolk Southern's Shawn Tureman said the railroad has been building toward the partnership for years, having grown from the third- to second-largest U.S. intermodal franchise by 2018 and setting a doubling target in 2022. Truckload rates carry a 30%-plus premium over intermodal, adding urgency to the shift. Baumgardt cited dray capacity and driver supply, not equipment, as the primary constraint. Both executives said the pending Norfolk Southern-CSX merger was not a driver of the agreement, though they said it could enhance service, reliability and speed.