Intermodal Savings Surge: Up to 49% ROI for Shippers

#fwtv_oNjVwKqu0g8. fwtv-panel{border:1px solid #d0d0d0;padding:18px;border-radius:6px;line-height:1. 6}#fwtv_oNjVwKqu0g8. fwtv-panel p{margin:0 0 12px}#fwtv_oNjVwKqu0g8. fwtv-note{font-style:italic;color:#666;margin-top:16px;padding-top:12px;border-top:1px solid #e0e0e0}Discover how intermodal freight is delivering massive savings in today’s volatile market.

As truckload spot and contract rates stabilize, intermodal options provide a crucial cost-saving advantage, especially on key lanes. Learn where to find the biggest savings and how shifting modes can optimize your freight spend.

Intermodal savings have surged to their highest level in several years, driven by a widening gap between rising truckload rates and relatively flat intermodal pricing, according to FreightWaves SONAR data presented by Julie Van de Kamp during a live update from the College Football Hall of Fame.

On the Harrisburg, Pennsylvania, to Atlanta lane — one of the top savings lanes in SONAR’s intermodal dashboard — van spot truckload rates are up approximately 42%, van contract rates are up about 26%, and intermodal rates have risen only 16%, making a compelling case for mode conversion.

East Coast corridors, particularly those out of Atlanta and Harrisburg, are leading the savings rankings, with lanes including Atlanta to Chicago, Atlanta to Joliet, Atlanta to Elizabeth, New Jersey, and Harrisburg to both Ontario, California, and Los Angeles all trending upward in the savings index over the most recent three months.

“That is such a good reason to consider mode conversion, take advantage of those savings, and understand where that helps even in a backhaul lane like what would typically be PA to Chicago at a length of haul that’s not transcon,” said Julie Van de Kamp. The broader market context reinforces the intermodal value proposition.

Tender rejections saw a significant drop from July 20 to August 5 but are now stabilizing, and spot rates, while down from earlier peaks year to date, are also leveling off. Meanwhile, contract truckload rates continue to rise, narrowing the gap between spot and contract.

Van de Kamp noted a roughly 66-cent-per-mile spread between spot rates on the NTI and contract rates on the VCRPM1, though she cautioned that spot rates are all-in while contract rates are linehaul only — with fuel surcharges running approximately $0. 70 per mile based on a Department of Energy estimate of around $45.

Intermodal volumes are rising alongside the savings opportunity. SONAR’s intermodal dashboard shows volume trends picking up on key lanes, and Van de Kamp said the market will be watching whether increased intermodal adoption eventually puts upward pressure on intermodal contract rates.

She had previously anticipated a potential increase of up to 8% in intermodal contract rates. However, Van de Kamp suggested that the current railroad merger environment may delay any rate increases.

“I would posit that in the wake of the current merger situation, that the 2 railroads involved in the merger aren’t gonna really wanna make waves or give shippers or any of their customers any reason to oppose the merger,” she said, adding that competing railroads would likely follow suit to protect market share.

For shippers, brokers, and carriers, the key near-term question is how the narrowing spot-to-contract gap and the sustained intermodal savings window will shape freight mix decisions heading into peak season.

Van de Kamp said she anticipates spot rates will rise again but noted that the continued climb in contract rates and the stability in intermodal pricing make the current period a meaningful opportunity to evaluate mode conversion on qualifying lanes.

Intermodal rates on the Harrisburg-to-Atlanta lane rose only 16%, compared to 42% for van spot and 26% for van contract truckload rates. East Coast lanes out of Atlanta and Harrisburg, Pennsylvania are posting the highest intermodal savings in SONAR’s dashboard, with volumes on those lanes trending upward.

A pending railroad merger may suppress intermodal contract rate increases — previously estimated at up to 8% — as involved carriers avoid actions that could draw shipper opposition. This Summary is generated thanks to a transcription of the interview, for the full interview please enjoy the video above.

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