Intermodal Providers Face Challenges as Freight Rates Struggle Amid Amazon's Competitive Moves

By Ken Miller, Senior Transport Journalist

Domestic intermodal providers are expressing dissatisfaction with the current freight market, reporting that initial bids for annual contracts with shippers have resulted in only modest rate increases in California, while many other regions are experiencing flat or declining rates. This situation highlights a challenging pricing landscape for carriers as they move into 2025.

Last October, railroads achieved a milestone by transporting over 82,000 containers from the Southwest to the Midwest, according to the Intermodal Association of North America (IANA). The route between Los Angeles and Chicago, the busiest in the U.S., also set a record, with about 40,000 to 50,000 containers moved that month.

Compounding the challenges in the domestic intermodal market is Amazon, which is capitalizing on its fleet of more than 20,000 branded containers. The e-commerce giant is aggressively pursuing shippers with competitive rates to fill its containers on backhauls from inland areas to the West Coast, seeking to optimize its freight flows from that region.

 
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