Schneider partners with Norfolk Southern; raises outlook despite Q3 miss

Schneider National announced Thursday it has inked a deal to utilize Norfolk Southern’s rail network in the East. The announcement was in conjunction with the multimodal transportation provider’s third-quarter report, which was slightly worse than expected.

Schneider said its new service agreement with Norfolk Southern (NYSE: NSC) will make the company the only entirely asset-based provider on a single-line transcontinental railroad in the U.S., assuming the railroad’s merger with peer Union Pacific (NYSE: UNP) is approved. (Schneider transferred its Western intermodal business to Union Pacific in 2023.)

Schneider’s intermodal service is executed with its own drivers and tractors, chassis (23,900), containers (26,800) and over 60 rail hubs in North America.

“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, executive vice president of intermodal and logistics at Schneider. “It will strengthen Schneider’s competitive position and enhance the reliable service experience our customers expect.”

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