Intermodal , Drayage and Chassis

Special Report

Railroads moved a record 82,000 containers from the US Southwest to the Midwest in October 2024 . dvande / Shutterstock . com

US intermodal providers navigating tough pricing environment

By Ari Ashe

US domestic intermodal providers are frustrated with what they say is a challenging freight market , as early bids on annual contracts with shippers have yielded only small rate increases in California and flat or declining rates in other regions . This reality underscores a tough pricing environment for carriers as 2025 begins .

One asset-based intermodal executive , who asked not to be identified , was “ disappointed ” with the results of

Contract intermodal , truckload rates flatline through Q4

Average contract rates for US truckload and intermodal rail , in USD per mile

USD per mile

$ 2.4

$ 2.3 $ 2.2

$ 2.0 $ 1.0 1.8

L

$ 1.6 $ 1.4 $ 1.2 $ 1.0

L Jan 2023

Jul Jan 2024 Jul Dec , 2024 Jan 20

Contract Truckload Shipper Rates Contract Intermodal Shipper Rates

Source : JOC Intermodal Savings Index © 2025 S & P Global

“ Inflation and rising costs have made our current margins unsustainable over the long term .”

annual contracts already awarded for 2025 , saying they fell below expectations . The source hopes to eke out a 1 % or 2 % increase on annual contracts that are inked in the first quarter and lobby for mid-single-digit percentage increases on a second wave of intermodal bids starting in March .

Meanwhile , J . B . Hunt Transport Services , the largest US intermodal carrier , has urged shippers to engage in “ transparent conversations ” about freight rates . In an advisory sent to shippers in the second week of January , a copy of which was obtained by the Journal of Commerce , the company cited robust California outbound volumes during the 2024 peak season as a reason to agree to higher rates now .

“ Inflation and rising costs have made our current margins unsustainable over the long term ,” the advisory said .

Railroads moved more than 82,000 containers from the Southwest to the Midwest last October , a record for any month , according to the Intermodal Association of North America . The Journal of Commerce estimates that , in that month , railroads hauled about 50,000 containers from Los Angeles to Chicago , the busiest US lane , which was also a record .

One intermodal shipper , who did not want to be identified , said that despite the robust peak season in Southern California for trucking and rail , there is still abundant capacity available to handle current freight demand , adding that rate increases won ’ t occur until shippers struggle to procure containers or trailers .

“ As long as the supply of containers , drivers and overthe-road equipment is sufficient for freight demand , rates are going to stay flat or go down as carriers compete to keep their equipment moving ,” the shipper said . “ Rates only go up significantly when the supply is insufficient or

16 Journal of Commerce | February 3 , 2025 www . joc . com