Circle Logistics: For Chemical Shippers, the Move to Intermodal Is a Lane-by-Lane Decision, Not a Wholesale Switch

GlobeNewswire | Circle Logistics
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FORT WAYNE, Ind., June 29, 2026 (GLOBE NEWSWIRE) -- Circle Logistics ("Circle"), one of the fastest-growing third-party logistics providers in North America, is advising chemical shippers that as rising truckload rates fuel a broad industry shift toward intermodal rail, the move should be treated as a selective lever rather than a wholesale migration, and that truckload capacity remains the backbone of any chemical network that leans on rail.

Recent industry reporting has highlighted a renewed shift from over-the-road trucking to intermodal as truck rates climb toward four-year highs. According to the Wall Street Journal, intermodal spot rates have run near $1.16 per mile against roughly $3.05 per mile for long-haul truckload, and North American intermodal volume was up 6 percent year over year in May. Logistics executives across the sector have pointed to rail savings in the range of 10 to 20 percent on the right lanes.

Circle Logistics agrees the trend is real and says chemical shippers should be converting the lanes that fit. Circle cautions, however, that chemical freight does not behave like the boxed, palletized freight that moves cleanly to rail.

"The rate spread is real, and chemical shippers should be moving the lanes that fit rail. But a chemical network is not a dry-van network," said Nicholas Shipe, Director of Premium Transportation at Circle Logistics. "Hazmat routing, transload exposure, and production schedules mean the cheapest mode on paper is not always the mode that protects the load or the customer. The shippers who win this cycle are the ones who can move freight between modes lane by lane, not the ones who bet the network on one."

Chemical networks operate under unique constraints not found in general freight. Hazmat shipments, for instance, require specialized ramps and drayage pools that are not universally available. Every transload introduces potential contamination and claims risks, making ISO tanks and tank cars, which remain in tight supply, the preferred but limited option. Production-critical and just-in-time deliveries cannot tolerate rail dwell times or ramp congestion. Because chemical distribution rarely aligns with simple, clean ramp-to-ramp routes, these shipments almost always require truck transport for the first and last mile.

The company's guidance to chemical shippers is to sort by lane rather than by mode. Long, predictable, high-volume lanes between ramp-served points, where a day or two of transit variability is acceptable, are strong candidates for rail. Short and mid-haul moves, time-critical loads, hazmat lanes without clean ramp access, and the drayage behind every intermodal move stay with truckload. Equally important, Circle says, is the contingency layer: when rail service degrades or equipment tightens, truckload is the recovery mode, not an afterthought.

Circle Logistics works with chemical shippers to build mode-flexible networks decided on total landed cost, service tolerance, and hazmat profile, backed by a carrier base vetted to move hazardous freight and surge truckload capacity standing behind the rail lanes.

"Every intermodal move still rides on a truck for the first and last leg, and when rail service slips, truckload is the recovery plan," added Shipe. "We tell chemical shippers to build the rail lanes they should build and to keep qualified truck capacity standing behind them. That is the part most plans underinvest in."

About Circle Logistics

Circle Logistics is a privately held third-party logistics provider headquartered in Fort Wayne, Indiana, committed to delivering No Fail Service, Personalized Communication, and Innovative Solutions. Founded in 2011 by Eric Fortmeyer and Chad Buchanan, the company operates 32 locations across the United States with 75 power units and more than 200 trailers in its fleet. Circle Logistics serves clients across the automotive, manufacturing, construction, retail, healthcare, and food-grade delivery sectors. For more information, visit circledelivers.com.

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Michaela Dildine
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michaela.d@leadcoverage.com


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