Tag Archives: Logistics Technology

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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