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CN closes intermodal terminals in Wisconsin

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The intermodal volume from Green Bay to Chicago was solid. CN wanted out and so they took a rate hike that essentially doubled the rate on that lane. At that rate, it was very comparable to over the road trucking. CN had major service problems from Schiller Park, IL (near Ohare) to Harvey, IL (their Chicago area Terminal - far South side.) If you can move it at the same cost on a truck and avoid the service problems on CN, it was a no brainer for the intermodal companies that used that train. <br /> <br />I think that the former operator, WC, had a philosophy that allowed them a lower rate of return on this train and still justify operating it. I'd also suspect that CN piled a heap of additional corporate overhead onto this train, that WC didn't have and all of a sudden , "Well golly gee, It ain't making money!" When the train died, did they get rid of all of that overhead back at their HQ? Doubt it. It just gets piled even higher onto the next thing in line. <br /> <br />CN wants to significantly increase their intermodal profitability, but in doing so, they are making their company harder to do business with. Check out their new IMX (Intermodal Excellence Program.) Lots of restrictions and financial penalites for the intermodal marketing companies who actually bring the freight to them.
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