J.B. Hunt Transport Services, Inc.’s Post

INTERMODAL: Often shippers ask how much can domestic intermodal save versus long-haul trucking? Where should I use Hub Group, J.B. Hunt Transport Services, Inc., Schneider, STG Logistics, Knight-Swift Transportation Intermodal, or the many other asset and non-asset providers? That's why we created the Intermodal Savings Index. In our latest update, we find that on average a shipper is saving about 27% across the US when choosing intermodal over trucking. Now not all lanes are equal, not all shippers are equal. Some lanes do not lend themselves to intermodal conversion, while others do. Some shippers might not have distribution centers in ideal locations for intermodal, while others do. In our article, read our high-level findings of domestic intermodal savings through Dec. 31, 2023. Gold subscribers get access to the full report with a lane-by-lane breakdown and access to the pricing data behind the index. https://lnkd.in/eimUp-gQ (BNSF Railway, CSX, Norfolk Southern, Union Pacific Railroad)

As per JOC latest update, they find that on average a US shipper is saving about 27% across the US when choosing intermodal over trucking. Not all lanes are equal, not all shippers are equal. Some lanes do not lend themselves to intermodal conversion, while others do. 27% is a big spread. With a more highly dependable, and proven by the test of time, intermodal service, discount pricing over truck should narrow over the coming years. As well as attract more volume. First test is volume growth. Later test is narrowing the price spread.

3 GREAT reasons to consider Knichel Logistics, Inc. for your OTR to intermodal conversion - 🍃 Sustainability 💃 Diversity 💲 Cost savings "The average US Shipper saves about 25% by running on a domestic intermodal contract compared with a truckload (OTR) contract." #sustainability #SupplierDiversity #ESG #DEI #Intermodal #KnichelLogistics #OTRtoIntermodalConversion

Intermodal demand not translating to higher rates Loaded intermodal container volumes are up 10% while spot rates are down 8% y/y. Normally demand correlates with price changes, but surface transportation markets continue to be well served with abundant capacity. Intermodal has gained back share that it lost to truckload during the volatile pandemic period. It seems both the railroads and ports have improved their infrastructure and capabilities for handling more volume. It may be doing the intermodal providers a slight disservice, however. Intermodal prices are very dependent on truckload prices. In other words, intermodal providers cannot raise rates unless the trucking carriers do. This means they are hauling more volume but at relatively low margins. In the long run, it probably doesn’t matter as this will keep the truckload market soft longer, which will also extend the exodus of capacity. Shippers can still take solace in knowing the container market has made some gains in efficiency stateside. Intermodal loses some value in November as shippers’ sense of urgency increases. For now it looks like the risk of a market flip in the second half has fallen but not gone away. FreightWaves SONAR

INTERMODAL: The latest Intermodal Savings Index has been released. Our proprietary data shows that the average US shipper saves about 25% by running on a domestic intermodal contract compared with a truckload (OTR) contract. Savings reached a record for spot business on the rails, but I anticipate that number to come down as spot rates go up out of Los Angeles. We have also heard that at least three asset-based US domestic intermodal providers have discussed peak season surcharges with certain shippers moving freight out of Southern California. Not met well by the shippers, but surcharges are being put in the table for discussion, according to my sources. ((Shout out to data partners: Cargo Chief, DAT Freight & Analytics, InTek Freight and Logistics, Inc., Intermodal Association of North AmericaLoadsmart, Sunset Transportation, Jason Miller, Lawrence Gross, and many other brokers, asset providers and shippers who participate with truckload or intermodal data on the condition of anonymity))

1. Cost savings (around 15% less compared to highway) 2. Flexibility (can pivot to highway services as needs change; expedited shipping to help with transit) 3. Reliable capacity (North America’s largest fleet with 118,000+ containers and 100,000 chassis + long term relationships with most Class I Railroads) 4. Sustainability (reduces carbon emissions by an average of 65% per shipment) If you are looking for a solve in your network that checks all these boxes and alleviates market volatility, look no further than J.B. Hunt intermodal.

8. Intermodal Transport Both systems are often used in combination for efficiency. Intermodal shipping leverages the strengths of both rail and road: Rail for long-distance haulage of bulk goods, then transferring to trucks for final-mile delivery. This approach optimizes cost, speed, and resource utilization. Conclusion In conclusion, the choice between rail and road freight transportation largely depends on specific logistics needs, including shipping distance, load size, cost considerations, and the type of goods being transported. Each mode has its advantages and disadvantages, and often the most efficient supply chains utilize both systems in tandem to maximize benefits based on their distinct strengths.

Transport Topics ranks Landstar System, Inc. among the top logistics companies in North America. Read our blog to see Landstar's 2024 ranking on two Transport Topics Top 100 lists: https://lnkd.in/eiFJHsFf

The article asks where is the methodology for this new combined fee. When any methodology is released will industry have transparency across the charging structure. One thing is for sure the revenue will somehow improve the botom line. #shippingandlogistics #logistics #frieghtforwarders #costcontrole #supplychainmanagement #supplychainoptimization

Intermodal shipping offers a flexible, safe, and cost-effective solutions for bulk shippers. 🛤️ Read and download this free guide on intermodal shipping below. #englandlogisticslife #intermodal #supplychain