Intermodal rates coming in hot this fall; mostly fuel driven
Fuel surcharges are doing most of the work for intermodal contracts this year, but are further increases expected? The post Intermodal rates coming in hot this fall; mostly fuel driven appeared first on FreightWaves .
Intermodal contract rates have surged in the fourth quarter, driven primarily by fuel surcharges. Transcontinental rates have risen more than 12% year-over-year, while rates on the shorter Eastern lanes have increased about 9%. Intermodal rates are typically negotiated annually, with most resets occurring near year-end. The increases, while significant, still provide a deep discount compared to truckload transportation.
Diesel prices have played a major role in the rate hikes, with a 50% rise in March and April followed by a 6% increase in the transcontinental contract index from April to May. Similarly, a 36% increase in diesel prices from July to September led to a 10% rise in the index from August to October. Fuel accounts for roughly two-thirds of the transcontinental increase and three-quarters of the Eastern increase.
Excluding fuel, transcontinental rates are up about 5%, and Eastern rates about 2%. Many larger shippers have negotiated their own, less aggressive fuel surcharge tables.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
