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Reefer Freight Remains Tight as Intermodal Savings Hit 33%

Refrigerated tender rejections are holding at 20% to 20.5%, defying a broader softening across van and flatbed markets. This divergence reflects structural constraints unique to reefer operations. Unlike dry freight, refrigerated trailers cannot convert to intermodal because purpose-built refrigerated containers must run continuously, limiting mode substitution flexibility. Meanwhile, intermodal is capturing significant dry freight volume as cost advantages widen. The intermodal savings index — measuring the price gap between intermodal and over-the-road trucking — stands at 33% above trucking rates, the highest level in three years. Total outbound rail container volumes are tracking significantly above the prior three-year average on a seasonally adjusted basis, with the volume trajectory continuing upward. Industry observers attribute the intermodal surge directly to this pricing differential. Flatbed rejections have declined sharply from spring peaks, driven by construction seasonality moderating building materials movement.