Breaking

Fuel Surge Drives Sharp Intermodal Rate Increases Heading Into Year-End

Intermodal contract rates have climbed substantially in the fourth quarter, with transcontinental lanes jumping more than 12% year-over-year and Eastern routes rising close to 9%. Diesel price movements are the primary driver, accounting for roughly two-thirds of the transcontinental increase and three-quarters of Eastern gains. Stripping out fuel surcharges reveals more modest underlying rate growth of approximately 5% for transcontinental and 2% for Eastern lanes. Annual contract negotiations reset near year-end, though many larger shippers have negotiated less aggressive fuel surcharge schedules than published rates suggest. Despite aggressive percentage gains, intermodal continues offering significant savings versus truckload services. The volatility in fuel pricing creates competing pressures for carriers and shippers: higher surcharge components increase rate swings but provide greater savings potential if fuel prices decline during contract periods.