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Shippers saved $ 706 per container on the spot market using domestic intermodal in Q1 2025. Summer _ Wind / Shutterstock. com

US spot intermodal savings slipped in Q1 amid largely flat rates

By Ari Ashe

US shippers saved an average of 19 % on spot market freight and nearly 26 % on contract loads in the first quarter by using domestic intermodal instead of long-haul trucking, savings that contracted in March amid rising trade tensions with China, according to the latest Journal of Commerce Intermodal Savings Index( ISI).

Trucking companies managed to secure contract rate increases early in the quarter, but that momentum faded as freight volumes slowed amid the growing trade conflict with Beijing, according to the quarterly earnings reports of several major carriers.

Pricing in intermodal contracts remained flat, with the only notable increases concentrated on outbound lanes from California.

Contract pricing flat as shippers continue to resist rate hikes

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

USD per mile

$ 2.1 $ 2.0

$ 1.0 1.8

$ 1.6

$ 1.4 L Jul Jan 2024

Jul

Jan 202525 Apr, 2025

Contract Truckload Shipper Rates

Source: Journal of Commerce Intermodal Savings Index

Contract Intermodal Shipper Rates

© 2025 S & P Global

L

Spot truckload rates, a leading indicator for intermodal pricing, fell as geopolitical tensions rose.

And now, as port volumes plunge along the West Coast, the downstream effects will likely be felt in the coming months, with softening demand to move freight into middle America on trucks and trains.

“ Imports may be dropping faster than consumer demand, and a lull in shipping could be the catalyst that removes additional capacity from the market,” Jim Filter, executive vice president of transportation and logistics for Schneider National, said on a May 1 earnings call.“ If there were new trade agreements, there could be an abrupt restart of imports with less capacity than there is today [ to handle the upswing ].”

“ Imports may be dropping faster than consumer demand and a lull in shipping could be the catalyst that removes additional capacity from the market.”

The Spot ISI averaged 119.1 in the first quarter, down from 120.4 in the fourth quarter but up from 117.1 a year ago. The Contract ISI slipped to 125.6 from 126.2 in the fourth quarter and 125.8 one year ago.

Index values above 100 indicate intermodal is the more cost-effective mode. The higher the index number, the greater the savings. For example, a spot ISI of 119.1 translates to a 19.1 % savings on intermodal versus truckload and a contract ISI of 125.6 implies a 25.6 % savings.

In dollar terms, shippers using domestic intermodal saved an average of $ 706 per container on the spot market and $ 964 per container on the contract market, according to the ISI, both virtually unchanged from the prior year. On hauls longer than 2,000 miles, contract savings topped $ 1,600 per box. But on lanes under 800 miles, the average savings dropped to $ 170 per container, which is easily erased if the shipper is located more than an hour from the rail terminal or incurs accessorial fees.

Spot truckload rates declined 14 cents between January and March to $ 1.86 per mile, while spot intermodal rates

38 Journal of Commerce | June 2, 2025 www. joc. com