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Long-haul trucking has become more expensive and less logistically viable, making intermodal transportation an increasingly attractive alternative. Its market growth will directly affect industrial production and commerce, impacting manufacturers and business owners. Which trends should they prepare for in 2025?

Why Intermodal Transportation Is Becoming More Common

Intermodal transportation involves moving freight by multiple modes of transportation — rail, air, road and ship. Lately, its growth has been exponential. Experts project its upward trajectory will continue. According to a Research and Markets report, the intermodal freight transportation market will reach an estimated $103.78 billion in 2028, up from $58.85 billion in 2024, achieving a compound annual growth rate of 15.2%.

The cost of long-haul trucking is among the foremost driving factors. Geopolitical issues and inescapable inflation have driven fuel prices up. The ongoing labor shortage is also compounding this problem. According to the International Road Transport Union, more than 50% of trucking companies had difficulty filling driver positions due to the shortage in 2023.

Since far fewer younger people are entering the trucking industry, the supply of skilled drivers is diminishing. Many of those who remain are demanding higher wages. Employers can either comply or lose their staff to competitors, further driving up operational expenses.

Other factors besides the high cost of long-haul trucking are driving intermodal transportation growth. For one, the e-commerce market is booming. Urbanization and an increased demand for expedited delivery support heightened manufacturing output, which drives the need for intermodal transportation. Ultimately, while these factors are core growth drivers, other burgeoning trends have moved into position to cause dramatic, abrupt changes in 2025.

Trends Pushing Intermodal Transportation Growth in 2025

Three significant trends should support positive growth for the intermodal transportation market in 2025.

Emissions Regulations Are Tightening

Various countries worldwide are getting serious about greenhouse gases. For instance, the European Union set a carbon dioxide standard for heavy-duty vehicles, targeting a 15% reduction by 2025 and a 45% reduction by 2030. These emerging environmental regulations will likely drive firms away from long-haul trucking and toward other modes of transportation.

Interest Rates May Soon Ease

The Federal Reserve may soon reduce interest rates. Experts project it could carry out two rate reductions in 2025. This forecast is not as optimistic as the previous one, which projected up to four cuts. This change may be the culprit of an abundance of caution — officials are waiting to see the impacts of President Trump’s policy changes. His handling of trade and immigration could influence their decision-making process.

The freight market will see growth if interest rates ease. In addition to rebounding from the yearslong recession, industry professionals would experience heightened borrowing capabilities. These factors could increase their resiliency to disruption and give them a unique opportunity to explore intermodal transportation.

Logistics Technologies Are Advancing

Advanced logistics and management technologies can increase supply chain visibility, making managing multiple modes of transport more accessible. With real-time tracking, edge computing, telematics and global positioning systems, intermodal transportation is not as risky as it otherwise would be. Since these solutions are becoming more powerful and affordable every year, even small business owners can leverage them.

Trends Slowing Intermodal Transportation Growth in 2025

While industry leaders hope for a meaningful upturn in 2025, these concerning trends may hold back the intermodal transportation market.

Cargo Theft Is on the Rise

The more stops and handoffs there are, the easier it is for bad actors and malicious insiders to infiltrate supply networks unnoticed. Cargo theft already increased by nearly 50% from 2023 to 2024. Would a multimodal strategy introduce carriers to a heightened risk of stolen freight? This question does not inspire confidence.

Geopolitical Instability May Worsen

Geopolitical instability often follows elections. Roughly 50% of the global population lived in countries that held a national election in 2024 — the largest election year in history. Naturally, inevitable policy and party changes lead to trade tensions and restrictions, potentially disrupting supply chains. In other words, the entire world will likely feel the effects in 2025.

The Government Might Introduce New Tariffs

A shift toward higher tariffs often results in a reduction in import and export volume. Trade restrictions are another common by-product. These obstacles could complicate the Federal Reserve’s efforts to ease interest rates, potentially slowing the growth of the multimodal transportation market.

The Far-Reaching Impacts of Intermodal Transportation

One year may not seem like a long time, but it is. By the end of 2025, interest rates, labor market logistics technologies and the geopolitical landscape could look completely different. Whether supply chains experience a recession or congestion, multimodal shipping will likely remain a rising market. However, companies and manufacturers should remain observant — the trends that influence growth may indirectly impact their profits and business opportunities.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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The material handling industry is the backbone of globalized supply chains. However, it encounters a range of challenges, both internal and external. One notable external challenge is the impact of labor shortages on transportation and logistics, which are vital components of material handling operations.

To overcome these challenges, companies are making significant investments in technology. According to the 2023 MHI Annual Industry Report, 74% of supply chain leaders are increasing technology spending.

While capitalizing on advanced supply chain technologies can offer some respite, leaders may need to take more profound measures to effectively address the emerging issues.

In light of the survey responses featured in the MHI report, this article aims to explore the three primary challenges faced by the material handling industry.

#1: Worker safety

According to the US Bureau of Labor Statistics, there were 5,190 fatal work injuries in 2021, with 798 attributed to exposure to harmful materials or the environment — the highest figure since the series began in 2011!

Material handling operations often involve risky conditions for workers. From handling hazardous chemicals in facilities to lifting heavy loads in warehouses, workers in this supply chain sector regularly risk their health and lives.

Common causes of worker injuries in material handling include:

• improperly stored materials falling
• damaged storage units
• heavy manual lifting, pushing, or carrying
• exceeding loading limits on lifting equipment
• collision with materials or equipment.

Ensuring workers’ safety and security is vital and requires a multi-pronged approach. Safety negligence or violation can quickly become a compliance issue, resulting in monetary and reputational damage.

Material handling and supply chain companies address workplace safety challenges by providing personal protective equipment (PPE), delivering safety training, conducting equipment training, and performing safety audits.

Conscious companies that rely on manual labor also address the ergonomics of material handling in their safety training. Identifying ergonomic risk factors in manual or machine-supported lifting, carrying, and pushing jobs is critical for preventing fatigue and injury.

To prioritize the health and safety of their employees, conscious companies cultivate a “safety-first” culture. A prime example of a logistics company that excels in worker safety is DHL, based in Germany.

Safety is a core value for DHL, and they have implemented a holistic approach to address safety concerns through continuous training, strict compliance with regulations, and active employee engagement.

Source: DHL

#2: Material and equipment damages

Poorly maintained equipment, untrained workers, and natural disasters can lead to expensive damages. Among these challenges, equipment damage stands out as one of the primary concerns for material handling companies, often resulting in downtime. In fact, unplanned downtime costs manufacturers a staggering $50 billion annually.

To ensure reliability and resilience, timely maintenance is crucial for all aspects of material handling operations, ranging from trucks and forklifts to pallets and sliding racks.

Similarly, it is equally important to prevent damage to the materials being handled by the equipment or workers. Well-organized warehouse loading and unloading processes, supported by well-trained workers and advanced technology, can effectively minimize material handling damages.

Many supply chain companies are leaning towards predictive maintenance solutions for equipment to ensure they are well-maintained for operations. Predictive maintenance leverages technologies like artificial intelligence (AI) and machine learning (ML) to predict potential problems with equipment and fleet.

In addition, these companies are minimizing accidents that result in costly damages through increased visibility. Warehouse inventory management and organization technology, for example, helps maintain optimal inventory levels, prevents overstocking, and ensures efficient use of storage space.

Gradesens, a Swiss company specializing in predictive maintenance, is helping logistics companies with very-narrow aisle warehouses proactively maintain automated systems for loading and unloading. With accurate and timely maintenance, the warehouses prevent downtime because of equipment failure.

#3: Controlling emissions

Carbon emissions are a huge problem for major industries, and material handling is no exception. With environmental organizations ringing alarm bells on rising global temperatures, material handling and supply chain leaders are paying close attention to sustainability.

Material handling operations, including warehousing, contribute to greenhouse gas (GHG) emissions through electricity usage, particularly natural gas. Additionally, using fossil fuel-powered vehicles and equipment contributes significantly to carbon emissions. Many material handling companies make up Scope 3 emissions for other organizations.

Source: GHG Protocol

Fortunately, the material handling industry is adopting energy-efficient practices, thanks to environmental advocacy and pressure from governments with ambitious sustainability goals.

The MHI report revealed that organizations in material handling are investing in electrification, natural resource management, sustainable water consumption, and the transition to renewable energy.

Similarly, the European Logistics Supply Chain Sustainability Report found that 80% of surveyed companies consider sustainability a key focus area.

Material handling companies are reducing carbon footprint by investing in electric lift trucks. Electric forklifts have zero emissions compared to their counterparts powered by internal combustion engines.

Renewable energy has also been a focus for the industry, with major companies setting goals to go 100% carbon-neutral or net zero emissions. For instance, Amazon, the largest corporate buyer of renewable energy, uses clean energy in many fulfillment centers. The company plans to reach its 100% renewable energy goal by 2025.

The takeaway

Material handling is linked with virtually every industry, which makes its challenges essentially every industry’s challenges.

Some of the issues aren’t unique to material handling. For instance, sustainability is a global issue. The good news is that many companies are taking promising measures to combat these challenges: and technology is at the heart of these solutions.

It’s imperative for organizations in material handling to provide training and maintain equipment for better worker safety. Similarly, investing in clean energy solutions can go a long way in reducing emissions, which is good for the environment and business.

Matilda Odell

*This article is written by Matilda Odell. Matilda works as the Content Creation Specialist at the brand TAWI, a brand by Piab Group, which enables smart lifting optimized for people and businesses. Piab helps its customers to grow by transforming their businesses with increased automation. If you have any questions about lifting equipment such as vacuum lifters or other lifting devices, Matilda is the person to talk to.

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