On the domestic side, are low truckload rates and low diesel prices still impacting domestic intermodal market share? (Tony Hatch)

Tony Hatch (4)

On the domestic side, are low truckload rates and low diesel prices still impacting domestic intermodal market share? What can the intermodal service providers that have lost market share over the course of COVID-19 do to be more competitive on that front?

 

The trucking market has tightened considerably, which is a plus for IM (as has the driver market).

Low fuel prices impact the small spot side of the market; over time rail service and available capacity outweigh the fluctuating price of diesel fuel.

The domestic market has been helped by improved RR service, the end of PSR lane cutbacks at a few carriers (CSX & UP), the super-heated Ecommerce market (see 28’ pups), and by west coast port market share gains (“the need for speed”) that translate into transloads!