CN-CSX Joint Intermodal Service: A Game-Changer for North American Freight Logistics
Canadian National Railway (CN) and CSX Transportation have launched a landmark joint intermodal service that directly connects Western Canada’s ports Vancouver and Prince Rupert with Nashville, Tennessee via an all-rail route. This initiative replaces the previous practice of trucking containers between Memphis and Nashville, offering a faster, more reliable, and environmentally sustainable alternative for shippers. The move marks a pivotal shift in the continent’s freight landscape, reinforcing rail’s role in long-haul logistics and positioning Nashville as a rising logistics powerhouse.
A New Era of Inland Connectivity
The formalization of this partnership through a Memorandum of Understanding (MoU) reflects a strategic pivot toward operational collaboration rather than corporate consolidation. CN and CSX are demonstrating that railroads can function as unified networks through shared infrastructure, synchronized operations, and data integration without the complexities of mergers.
This new routing option:
- Strengthens Canada–U.S. trade corridors, especially for exporters in British Columbia and importers across the U.S. Southeast.
- Reduces dependency on trucking, a mode increasingly strained by driver shortages, fuel costs, and regulatory pressures.
- Elevates Nashville’s logistics profile, making it a key node in transcontinental supply chains.
Operational Features
Steel-Wheel Interchange at Memphis
The service introduces a “steel-wheel interchange” at CN’s Memphis terminal, allowing containers to transfer seamlessly to CSX’s network without leaving the rail. This eliminates the need for a 200-mile truck haul to Nashville, which previously handled approximately 20,000 containers annually.
Expanded Terminal Capabilities
CSX’s Nashville terminal now accommodates international cargo from Western Canada, joining existing flows from:
- The U.S. West Coast
- The Southeast
- Gulf Coast ports
- Inland distribution centers
This integration enhances intermodal flexibility and opens new routing possibilities for shippers.
Benefits for Shippers and the Supply Chain
Speed
One of the most immediate and impactful advantages of the CN-CSX joint service is the significant improvement in transit speed between Western Canada and Nashville. By eliminating the 200-mile truck leg between Memphis and Nashville, the new all-rail route streamlines the journey, reducing overall transit time and enabling shippers to meet increasingly tight delivery windows. Rail also avoids many of the unpredictable delays associated with trucking such as traffic congestion, driver availability, and weather-related disruptions making it a more consistent and dependable option.
Example: CSX intermodal trains have been clocked at speeds up to 65 mph on optimized corridors. According to CSX executives, the steel-wheel interchange reduces transit time by up to 24 hours compared to the previous truck leg. This time savings is especially valuable for time-sensitive goods like retail inventory and seasonal agricultural products.
Reliability
Reliability in freight logistics isn’t just about arriving on time it’s about minimizing risk, reducing handling, and ensuring cargo integrity throughout the journey. The CN-CSX partnership enhances reliability by keeping containers on a single mode rail from origin to destination. Previously, containers arriving in Memphis had to be transloaded onto trucks for the final leg to Nashville, introducing opportunities for damage, misrouting, or delay. Each transfer point in a supply chain adds complexity and potential for error. By maintaining a steel-wheel interchange and eliminating the need for intermediate handling, this service reduces those risks substantially.
Example: CSX was ranked the top-performing railroad in North America by intermodal service providers in the Journal of Commerce’s Intermodal Service Scorecard. Customers cited CSX’s trip plan compliance above 95%, meaning containers consistently arrived on schedule. CN’s wildfire preparedness and collaboration with Canada’s pulse crop industry also reflect its commitment to operational resilience.
Sustainability
Environmental sustainability is no longer a peripheral concern in logistics it’s a central pillar of corporate responsibility and regulatory compliance. The CN-CSX joint service directly supports sustainability goals by removing thousands of truck trips from highways each year. Rail is significantly more fuel-efficient than trucking, with lower greenhouse gas emissions per ton-mile. By converting approximately 20,000 container movements from truck to rail annually, this initiative contributes to cleaner air, reduced road wear, and less congestion on major freight corridors.
Example: CSX’s “Service with Purpose” platform outlines its commitment to reducing emissions and aligning with global ESG standards. CN has emphasized that this new route supports environmental goals by cutting highway congestion and emissions. Trains emit up to 75% less CO₂ per ton-mile than trucks, making this shift a major win for climate-conscious shippers.
Market Reach
Expanding market reach is a strategic priority for shippers looking to grow their customer base and optimize distribution networks. The CN-CSX connection opens up new possibilities by linking Western Canada’s ports directly to Nashville, a city that sits at the crossroads of several major freight corridors. This enhanced connectivity allows Canadian exporters to penetrate deeper into the U.S. interior, reaching markets in Tennessee, Kentucky, Georgia, and beyond with greater ease.
Example: CSX CEO Joe Hinrichs noted that the company has over 500 active industrial development projects in its network, with another 1,000 sites in inventory many of them in the Southeast. This positions Nashville as a gateway for Canadian exporters to access booming markets in the region, especially in automotive, manufacturing, and consumer goods.
Cost Savings
Replacing the truck leg with rail doesn’t just save time it saves money. Trucking costs for a 200-mile haul between Memphis and Nashville typically range from $400 to $600 per container, depending on fuel prices, driver availability, and congestion. By shifting to rail, companies can eliminate these costs entirely.
Estimated savings: With approximately 20,000 containers moved annually on this corridor, the CN-CSX service could save shippers between $8 million and $12 million per year in drayage expenses alone. Additional savings come from reduced fuel surcharges, fewer handling fees, and lower risk of damage or delay.
Operational efficiency bonus: The coordinated rail service also improves shipment tracking and reduces logistics complexity, which translates into indirect cost savings through better inventory management and fewer service disruptions.
Tariff Impacts on the CN-CSX Service
Shift in Port Preferences
Rising tariffs and port fees especially those targeting China-linked container vessels have prompted many carriers to reroute shipments to Canadian ports like Vancouver and Prince Rupert. Since CN exclusively serves Prince Rupert, this shift increases container volumes entering Canada, which in turn boosts demand for inland rail services like the CN-CSX route to Nashville.
Example: In response to U.S. port surcharges, Maersk and MSC have increased calls to Prince Rupert, bypassing West Coast U.S. ports. This has led to a surge in CN’s intermodal volumes, reinforcing the strategic importance of the CN-CSX corridor.
Modal Conversion Incentives
Tariffs often introduce cost pressures that force shippers to reevaluate their logistics strategies. Faced with higher import duties, many companies seek savings elsewhere particularly in transportation. Rail, being more fuel-efficient and scalable than trucking, becomes a more attractive option.
Example: A major electronics importer based in Ontario shifted its U.S. distribution strategy to rail via CN-CSX after facing steep trucking surcharges and customs fees at U.S. ports. The all-rail route helped offset tariff-related costs while maintaining delivery schedules.
Trade Volume Volatility
Tariffs can also cause unpredictable shifts in trade volumes. CN has already experienced tariff-related headwinds that affected its shipment volumes and earnings guidance. If tariffs escalate or trade negotiations stall, overall container traffic could dip, impacting the utilization of the CN-CSX service.
Example: During the 2023 U.S.-China tariff escalation, CN reported a 5% drop in intermodal volumes due to reduced Asian imports. However, volumes rebounded after shippers rerouted through Canadian ports, demonstrating the corridor’s resilience.
Strategic Flexibility
Ultimately, the CN-CSX partnership offers shippers strategic flexibility in a volatile trade environment. By providing a direct rail link from Canada to the U.S. interior, the service gives businesses more routing options and supply chain resilience.
Example: A U.S. auto parts distributor in Georgia began using the CN-CSX route to bypass congested Gulf Coast ports and avoid tariff-heavy customs zones. The rail corridor offered a stable, tariff-insulated alternative that kept their supply chain moving.
Conclusion: A Timely Investment in Resilient, Rail-Based Trade
The CN-CSX joint intermodal service is more than a logistical upgrade it’s a strategic inflection point for North American freight movement. By replacing a costly and inefficient truck leg with a seamless all-rail connection between Western Canada and Nashville, this partnership delivers measurable improvements in speed, reliability, sustainability, and cost efficiency. It also redefines what railroads can achieve through collaboration, offering shippers a unified network without the regulatory and operational complexities of a merger.
But what makes this initiative especially compelling is its timing. In 2025, global trade is navigating a landscape shaped by rising tariffs, shifting port preferences, and mounting pressure to reduce carbon emissions. The CN-CSX corridor directly addresses these challenges, offering a tariff-resilient route that bypasses congested and fee-laden U.S. coastal ports. With carriers increasingly rerouting through Canadian gateways like Prince Rupert and Vancouver to avoid U.S. surcharges, CN’s exclusive access to these ports becomes a strategic asset. The steel-wheel interchange in Memphis ensures that containers remain on rail all the way to Nashville, eliminating the need for costly drayage and reducing exposure to volatile fuel prices and highway tolls.
For shippers, the financial upside is clear. With trucking costs between Memphis and Nashville averaging $400–$600 per container, and 20,000 containers annually affected, the shift to rail could save between $8 million and $12 million per year in direct transportation costs. Add to that the indirect savings from fewer delays, reduced damage risk, and improved inventory flow, and the business case becomes even stronger.
Moreover, the service aligns with long-term sustainability goals. Rail emits up to 75% less CO₂ per ton-mile than trucking, and removing thousands of truck trips from highways each year contributes meaningfully to corporate ESG targets and national climate commitments. In an era where environmental performance is increasingly tied to brand reputation and investor confidence, this corridor offers both operational and reputational value.
Perhaps most importantly, the CN-CSX partnership offers strategic flexibility in a time of uncertainty. As trade policies shift and tariffs evolve, companies need routing options that are insulated from geopolitical disruptions. This rail corridor provides exactly that a stable, scalable, and tariff-smart alternative that strengthens supply chain resilience and unlocks new market access across the U.S. Southeast.
The CN-CSX intermodal service is not just a response to current freight demands it’s a proactive investment in the future of continental trade. It empowers Canadian exporters, supports U.S. importers, and positions Nashville as a rising logistics hub. And in a world where tariffs, emissions, and efficiency are shaping the next generation of supply chains, this partnership couldn’t have arrived at a better time.