Schneider will make Norfolk Southern its primary eastern rail provider under an agreement announced Oct. 29 aimed at expanding domestic intermodal capacity and giving shippers more options to move freight across the eastern United States.
The agreement, effective in November, shifts Schneider’s NYSE: SNDR) company-owned equipment, drivers and logistics operations away from CSX (NASDAQ: CSX) and pairs it with Norfolk Southern’s 22-state intermodal network. The companies said the partnership would expand market access, increase capacity flexibility and help attract freight now moving by truck.
“As we transition our primary eastern rail provider to Norfolk Southern, we’ll expand access to key markets, increase network flexibility and create new opportunities to better serve our customers,” said Michael Baumgardt, Schneider’s executive vice president of intermodal and logistics, in a release.
The move comes as NS pursues a transcontinental merger with Union Pacific (NYSE: UNP).
Schneider’s intermodal operation includes approximately 23,900 chassis, 26,800 containers and more than 60 rail hubs across North America. Its company drivers handle more than 90% of its domestic dray moves, the companies said.
Norfolk Southern (NYSE: NSC) said the partnership builds on a series of infrastructure and service investments intended to accommodate customer growth. Those projects include new service between Cincinnati and Atlanta, double-stack clearance improvements linking the Midwest and New England through its East Edge route, and terminal expansions in Ohio, Michigan, North Carolina and Illinois.
The railroad is also upgrading pavement, lighting, storage areas, maintenance facilities, truck access and security at terminals in several markets, including Atlanta, Louisville, Harrisburg, Chicago and St. Louis. Norfolk Southern said the work is intended to improve reliability and reduce the time drivers spend moving through terminals.
“Customers are taking a broader view of intermodal than ever before, and we are investing ahead of that demand,” said Ed Elkins, Norfolk Southern’s executive vice president and chief commercial officer.
Norfolk Southern reported that its intermodal volumes grew 3% in the third quarter of 2026, citing steady consumer demand, favorable truck-market conditions and network improvements. The companies said the new agreement would support further growth by broadening Schneider’s reach and creating opportunities to convert truckload shipments to intermodal service.
The announcement did not disclose financial terms, quantify the additional capacity expected from the partnership or specify a transition date.
Why it matters: While a key win for NS, a longer-term connection to the proposed Union Pacific–Norfolk Southern merger gives Schneider access to additional intermodal markets by reducing the difficulties associated with shorter rail hauls and transfers between railroads.
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