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
Expect volatility to the upside in Q4.
Global trade as a percentage of global GDP peaked in 2006 for a variety of reasons. Geopolitical tensions are creating more friction in global trade, while automation is smoothing out the labor cost arbitrages that shifted manufacturing from the U.S. to Asia in the 1980s and ’90s. Meanwhile, more
Intermodal volumes were still up mid-single digits in Week 39 (up 5.5% year-over-year), even as railroads raise prices on shippers and intermodal marketing companies and congestion at Southern Californian ports worsens. Ocean bookings data, particularly on the trans-Pacific, indicates that imports will stay strong for at least the next
Shippers, especially retailers, are giving ground on price to secure capacity for what promises to be an unpredictable Q4.
Average intermodal train velocities improved by 1.2 mph compared to last week while dwell times were flat, but those numbers don’t capture the full reality of the service as experienced by shippers. Railroads adjust equipment fleets, power and crew starts to maintain operating leverage in response to rising and
Rates pulled back by 1.3% w/w, but moves by brokerages and carriers indicate they think the rally has legs.
Even assuming that Nikola's truck can do what Trevor Milton said it can do, the company's business model is exceptionally difficult to execute.
Tender rejections have fallen for a week, but that doesn't mean that rates will.
U.S. Class I railroads have largely arrested declines in average intermodal train velocity and lengthening terminal dwell times, but they’re doing so by punishing shippers for tendering surge and spot volumes. Union Pacific has imposed surcharges of $5,000 on spot intermodal containers outbound from California because previous rate hikes
Everything is in place for a face-ripping rally in Q4.
Relationships between shippers and transportation providers are being reshuffled.
Two things can be true at the same time: The United States Postal Service is an invaluable public service crucial to the transportation of pharmaceuticals, official documents and much else, and it’s also in an unsustainable position and in need of a turnaround. Many people are aware of the
Los Angeles and Dallas are driving the national market.
There's a routing guide shake-up happening right now.
The automotive, chemicals, and food industries are fueling North American economic integration.
Rejections and rates set to go higher from here on sustained shifts in consumer behavior.
We don't think that capacity will loosen soon, but upward pressure on contract rates will take time.