Total intermodal traffic on U.S. Class I railroads was up 11.5% year-over-year last week, beating the prior four-week moving average of 10.8%. The Western rails led the way: BNSF intermodal volumes were up 13.1% year-over-year, and Union Pacific’s intermodal volumes were up 12.1% year-over-year. Import shipments into Los Angeles and
Tender rejections hit an all-time high as spot rates grind higher.
Union Pacific is turning the corner on its standard reported service metrics, accelerating its intermodal trains while cutting dwell times, while BNSF was the intermodal volume leader last week, up 16.3% year-over-year. Intermodal tender rejections are down in both Los Angeles and Ontario, California. Those are healthy signals that inbound
Rates and rejections holding at very high levels before Thanksgiving and Black Friday.
The transportation management system (TMS) platform has come a long way over the past decade — from a key differentiator for some transportation and logistics companies to a must-have for all. According to market research firm Grand View Partners, the global market size for TMS platforms was estimated at $61.2
The national average refrigerated truckload spot rate on Truckstop.com’s load boards is an incredible $3.36/mile, including fuel. That has kept reefer tender rejections very high and operating ratios very low. We called the bull market for refrigerated trucking transportation in our June 1 note, “Reefer markets: Enjoying a positive setup.”
Just over 53% of BNSF’s total volume is composed of intermodal containers — the Western railroad joins Norfolk Southern as the only other Class I with a freight portfolio more than half intermodal. BNSF continues to outpace Union Pacific’s intermodal volume growth. It’s a different story for Kansas City Southern,
Truckstop dry van truckload spot rates from LA to Dallas spiked 11.5% week-over-week.
Asset-based truckload carriers are in their best position since 2018: Revenue per driver per week is surging, empty miles are down, and operating ratios are low. Carrier performance is being driven by robust volumes and tight trucking capacity, with both sides of the marketplace being affected by the COVID-19 pandemic.
Shippers and intermodal marketing companies are running into intermodal capacity constraints all over the country, not just Southern California. Over the past week, intermodal tender rejections soared in Joliet (Chicago) and Savannah, Georgia, even as spot rates took another leg up out of Los Angeles. There still appears to be
Tender rejections increased in LA, Dallas, and Chicago—and so did the national average spot rate.
Gross margins narrowed across the board, but 3PLs moved more volume with fewer people.
On the Norfolk Southern Q3 earnings call, much of the Q&A period with analysts focused on NSC’s intermodal franchise: The railroad hauls more intermodal containers as a percentage of its overall volumes than any other railroad, and on an absolute-volume basis, much more than its eastern competitor CSX. We
Shippers are raising contracted rates and intermodal volumes are growing, taking some pressure off spot markets. But we expect markets to turn up this week.
We’ve already seen a number of transportation companies report third-quarter earnings results and so far what we’ve heard is in line with the first stage of an upcycle. In general, that means that the more sensitive a transportation company’s revenues are to cycles in the trucking spot market, the
CSX’s Intermodal Trip Plan Performance rate fell to 87.4% from 94% in the second quarter. Trip Plan Performance refers to on-time rates against planned estimated times of arrival on a per-container (or carload) basis, and is therefore a more relevant, customer-centric service metric than dwell time or train velocity.
Markets have been flat to soft for two weeks, but expect a turn-up heading into November.
Reefer capacity remains tight, volumes are strong and spot rates are very high. In fact, at $3.29/mile including fuel, national average reefer spot rates on Truckstop.com’s load boards have not yet retreated from their YTD high. Midwest to the East Coast lanes have the most momentum and may continue
On Friday, we’ll hear third-quarter financial results from two important players in the intermodal industry: J.B. Hunt and Kansas City Southern (KCS). In our view, the most important issues at stake are the degree to which the respective management teams believe the COVID-juiced surge in intermodal volumes is sustainable into
Carriers are still exercising optionality and charging a premium to drive into backhaul markets.
Another wave of rate and service volatility, the product of high volumes and tight capacity, will work its way through the country from its source in Southern California. Rates out of Los Angeles spiked as intermodal tender rejection rates, which only come into play during periods of serious disruption, are