Intermodal: Freight’s MUST-HAVE in Volatile Markets
Intermodal conversion is no longer an option but a necessity for shippers, driven by past supply chain chaos and persistent fuel costs. FreightWaves Finance Editor Todd Maiden breaks down J.B. Hunt’s strategic plays in intermodal and dedicated, revealing how major carriers are navigating current market headwinds and positioning for future growth. Learn which segments are […] The post Intermodal:…
Intermodal freight has become a necessity for shippers amid supply chain disruptions and rising fuel costs, according to J.B. Hunt Transport Services. The company reported a 5-10% sequential decline in earnings per share and a 4-quarter turnaround in its profitability, driven by a $130 million cost-reduction initiative and AI-driven lean initiatives.
The broader carrier industry is expected to see around 20% average earnings growth this quarter, following a 25% year-over-year growth in the previous one. Fuel prices, while a significant drag, are expected to stabilize soon, reversing the headwind. Intermodal volumes have increased mid-single digits this quarter, with contract pricing expected to inflect materially following two soft years.
LTL carriers such as Old Dominion, XPO, and Saia have maintained pricing power despite three years of industrial softness, while regional carriers are at capacity limits, favoring national players with excess capacity.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
