Intermodal Hits All-Time Highs as Truckload Stays Tight
Intermodal hits all-time highs while truckload rejection rates hold near 14% — and that matters for every carrier and broker watching Q4. In this FreightWaves market update, we break down tender rejections, dry van/reefer/flatbed spot rates, the early-October volume drop and why domestic intermodal keeps taking share. The key question: is capacity still tight, or […] The post Intermodal Hits…
Intermodal transport volumes in the United States have reached record highs, growing by 8% year-over-year while experiencing consistent multi-year gains. This surge in intermodal freight is causing a shift in the freight market, with tender rejection rates for truckload services remaining stubbornly near 14% throughout the early October period.
Zach Strickland, an industry expert, highlights that a significant portion of the drop in truckload tender volumes seen in late September is moving to intermodal transport, rather than indicating a broader economic slowdown. The rail network's fixed infrastructure poses challenges in managing this volume surge, which could lead to capacity constraints.
On the truckload side, rejection rates have remained high, particularly for flatbed and refrigerated trailers, while dry van rates have experienced a slight seasonal decline. Diesel fuel costs are influencing both rejection rates and spot rates, impacting margins for smaller fleets with a heavy reliance on the spot market. However, it is premature to assume that rates have peaked due to ongoing supply-demand imbalances and persistent diesel cost pressures.
The key concern for intermodal transport is whether the 8% growth rate can be sustained given the limitations of the rail network and the potential for disruptions that could create choke points in domestic freight flows.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
