Intermodal Boom? What CEOs See Now

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6}#fwtv_LfBRtZSYVtM. fwtv-panel p{margin:0 0 12px}#fwtv_LfBRtZSYVtM. fwtv-transcript p{margin:0 0 12px}SummaryView TranscriptIntermodal demand is surging, but drayage capacity is tight.

Geoff Anderman, CEO of STG Logistics, dives into what’s driving this growth and how recent restructuring and new ownership are positioning STG to capitalize on market opportunities. He also shares insights on port activity, tariff volatility, and the competitive landscape for intermodal services.

An intermodal marketing company that wrapped up Chapter 11 proceedings in early July emerged with 90% less debt and new owners — Fortress, Fidelity and Invesco — and its CEO says the restructuring has removed a key constraint on growth just as intermodal demand accelerates.

The company operates a fleet of 15,000 containers and provides internal drayage coverage on both ends of its rail moves, a combination the CEO described as an edge over pure-play competitors. Demand for intermodal service is strong enough that the company left volume on the table in the second quarter, the CEO told FreightWaves.

Drayage capacity — the short truck hauls to and from railheads — was the binding constraint, a problem he said persists into the summer. “We could have done even more,” he said. “There was that much sort of demand for the service out there.”

“We could very easily put a significant amount of incremental drivers to work right now, given the demand we’re seeing in the marketplace.” The drayage crunch mirrors dynamics in the broader trucking market, where regulatory compliance actions have pushed capacity out.

The CEO said dray costs are rising in lockstep with over-the-road rates, and the company is managing the squeeze in real time. Driver availability tied to the compliance crackdown is the primary driver, he said, echoing concerns raised by other freight executives. The CEO identified over-the-road trucking — not rivals such as J. B.

Hunt, Hub Group, Schneider or Knight-Swift — as the primary competition for intermodal. He said all intermodal providers share an interest in pulling freight off highways by leveraging railroad partnerships to deliver a cost-efficient, energy-efficient alternative to trucking. He noted J. B.

Hunt is the largest player in the space but called the other named carriers “formidable” providers as well. Modal conversion is emerging as a growth avenue. The CEO said new shippers are trialing intermodal lanes they had not historically used, driven by tightening truck capacity, rising tender rejections and rate pressure.

He cautioned that converting shippers takes time — network redesign is required — but said customers who work through the learning curve tend to stay.

“To the extent that our rail partners working with us are continuing to provide good service, I think there’s going to be go-forward opportunities to continue to execute on those conversion opportunities,” he said. On the pending Union Pacific–Norfolk Southern merger, the CEO was measured.

He said his company has seen strong rail service from all railroad partners over the past 12 months and wants any merger outcome to preserve competitive, reliable service.

He was more direct about tariff volatility, noting that port activity showed strength late in Q2 and into early Q3 but flagged uncertainty about how much of that volume was front-loaded ahead of tariff changes.

With its recapitalized balance sheet, the company plans to invest in logistics capabilities — including transloading, consolidation and deconsolidation inside warehouse walls — alongside its transportation assets, technology and go-to-market strategy.

The CEO cited a deal with a large West Coast retailer in which the company consolidated the shipper’s provider network around specific distribution centers, driving what he called “pretty meaningful costs” out of the supply chain while improving service reliability.

Intermodal IMC exited Chapter 11 in July with 90% less debt and new owners Fortress, Fidelity and InvescoDrayage capacity tightness capped Q2 volume growth and persists into Q3, with dray costs rising alongside over-the-road ratesModal conversion from truckload is an emerging growth dri