Surface Transportation fell 6 cents to $ 1.56 per mile, according to the ISI. Contract truckload rates fell 3 cents to $ 1.95 per mile, while contract intermodal rose 1 cent to $ 1.48 per mile in the first quarter. Truckload contracts rose 3 cents in the first two months of the year before falling 6 cents in March amid the rising geopolitical tensions.

A‘ flat’ bid season

The most common word to describe bid season was“ flat,” according to conversations with asset-based and non-asset-based intermodal providers. Rates went up on freight originating in California but remained largely unchanged or down elsewhere in the US.

One retail shipper told the Journal of Commerce that a major intermodal provider repeatedly called and emailed with last-minute rate cuts to secure additional volumes in the final five days before freight awards.

Downward pricing pressure is intensifying on westbound lanes from Atlanta, Chicago, Dallas and Memphis to Los Angeles, where Amazon is undercutting traditional carriers to fill its fleet of more than 22,000 branded containers. The online retail giant moves heavy eastbound volumes but often struggles to backhaul westbound containers, many of which return empty.

While some shippers have rebuffed Amazon’ s overtures, others are shifting a portion of their freight previously awarded to established carriers to Amazon to test whether the retail giant can offer consistent capacity and service throughout the year.

The data behind the Contract ISI and Spot ISI is available to Journal of Commerce Gold subscribers.

email: ari. ashe @ spglobal. com

Lack of accurate data a threat to US shippers as LTL reclassification nears

By William B. Cassidy

With sweeping changes to the less-than-truckload( LTL) classification system in the US coming July 19, shippers are wrestling with how to prepare for them.

The reclassification being pursued by the National Motor Freight Traffic Association( NMFTA) is meant to shift more products to density-based LTL classes, and that could affect how much LTL shippers pay to ship goods.

Just how much rates might change was a major issue for shippers participating in a recent Journal of Commerce webcast.

“ We’ ve tried to do some analysis, but so few of our shipments had good NMFC [ National Motor Freight Classification ] information or dimensional information on bills of lading that it was very cumbersome,” said Shawn Galloway, vice president of pricing at multi-regional LTL carrier Pitt Ohio.“ I’ ve tried to help shippers out individually as they’ ve come to me. But overall, I would have no idea.”

While many shippers have been proactive about the NMFC changes, others may be waiting until July“ to see how things shake out,” Galloway said during the webcast.“ I think that’ s a bit dangerous.”

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