Schneider National and Norfolk Southern announced a partnership under which Norfolk Southern becomes Schneider's primary eastern rail provider. CSX had held that role since 2008, according to a Schneider spokesperson. The announcement followed Schneider's third quarter earnings call on October 29.
Schneider executives said the move expands access to key markets, adds network flexibility and supports efforts to convert freight from truck to intermodal. Michael Baumgardt, Schneider's executive vice president of intermodal and logistics, described the transition in the company's release as a way to serve customers in more markets.
The agreement builds on Norfolk Southern investments across an intermodal network that spans 22 states. Recent projects include a new service between Cincinnati and Atlanta and double-stack clearance improvements between the Midwest and New England. The railroad is also expanding terminals in Ohio, Michigan, North Carolina and Illinois, and is improving pavement, truck access routes and storage areas at several facilities.
Schneider's portfolio covers regional and long-haul truckload, expedited, dedicated, bulk and intermodal services. The company operates 23,900 chassis and 26,800 containers and works with more than 60 intermodal rail hubs in North America.
The partnership comes as Norfolk Southern pursues a merger with Union Pacific. Schneider CEO Jim Filter told analysts that a combined railroad could add single-line services and improved connectivity, and that those benefits are not assumed in the company's current expectations. He said a transcontinental network would open parts of the center of the country that intermodal does not serve well today, where two railroads make short hauls and freight needs a crosstown transfer.
Many shippers and industry groups have raised concerns about the proposed transcontinental railroad, citing possible weaker competition and higher rates. Trucking executives and analysts have identified advantages and drawbacks of the deal.
Source: Trucking Dive - https://www.truckingdive.com/news/norfolk-southern-schneider-national-team-to-scale-east-coast-intermodal-re/873442/