uploads///CNI Intermodal

How CNI’s Intermodal Volumes Compared with the Industry


Nov. 20 2020, Updated 5:18 p.m. ET

Canadian National’s intermodal volumes

In the week ended December 3, 2016, Canadian National Railway’s (CNI) overall intermodal volumes were up 5.3%. The container volumes were up 5.7% in the same week against the corresponding week in 2015.

The company moved ~44,000 containers in the reported week of 2016 against ~42,000 containers in the corresponding week of 2015. The percentage rise in CNI’s intermodal volumes was in line with the rise reported by US and Canadian railroads.

Investors interested in CNI’s 3Q16 results can read Were Canadian National Railway’s 3Q16 Earnings a Hit or a Miss?

Article continues below advertisement

Why is intermodal important for CNI?

Intermodal contributed 26% to CNI’s revenues in 3Q16. Out of its total carloads in the same quarter, intermodal’s share was 41.8%. Canadian National also operates one of the largest trucking services in Canada serving the intermodal business.

Canadian National’s competitive advantage comes from its sole access to the Port of Prince Rupert, BC. In addition, CNI connects with Vancouver, BC, and Prince Rupert, BC, in a long arc. This route provides opportunities for the company to move containers from Asia throughout the US.

CNI’s Domestic segment is driven by consumer markets and the general US and Canadian economic growth. Its International segment is influenced by the North American economic and trade conditions. In the intermodal sector, the company also faces competition from truckload companies such as J.B. Hunt Transport (JBHT), Heartland Express (HTLD), Swift Transportation (SWFT), and Landstar System (LSTR).

Investors opting for exposure to the transportation sector can invest in the Guggenheim S&P 500 Equal Weight ETF (RSP). All US-originated Class I railroads make up the portfolio holdings of RSP.

In the next part, we’ll look at the weekly rail traffic data for CNI’s rival, Canadian Pacific (CP).


More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.