The North American intermodal market is projected to experience a favorable second half of the year, according to analyst Larry Gross. This positive outlook is primarily attributed to the continued upward trend in diesel fuel prices and persistently high trucking rates. These factors are creating a more competitive environment for intermodal services, which leverage rail for long-haul movements, offering an alternative to purely road-based transport.
For freight forwarders and operations managers, this trend suggests that intermodal options may become increasingly attractive for shippers looking to manage costs. The sustained high cost of diesel directly impacts trucking operational expenses, potentially making intermodal a more economical choice for certain lanes and cargo types. This could lead to increased demand for intermodal capacity, influencing lead times and potentially requiring forwarders to book further in advance. Understanding these cost dynamics will be crucial for optimizing routing decisions and providing competitive quotes to clients.
