Intermodal Savings Surge with High Diesel Costs
What happened
Intermodal offers 10-25% savings over truckload due to better fuel efficiency as diesel costs potentially hit $4.00+/gallon data.
Why it matters
Intermodal's cost benefits could become even more pronounced if diesel prices keep climbing. Some analysts predict diesel could surge past $5/gallon this year due to geopolitical tensions and refinery constraints. That price jump would further squeeze trucking margins, making intermodal a more attractive option for shippers seeking cost savings. Shippers may need to increase their planning lead times, as intermodal can take longer than traditional truckload. Capacity and equipment availability are key factors for shippers to consider when shifting freight to intermodal. They should also assess the suitability of their goods for intermodal transport, considering factors like fragility and temperature sensitivity.
Key numbers
- Intermodal offers 10-25% savings over truckload due to better fuel efficiency as diesel costs potentially hit $4.00+/gallon data.
- Some analysts predict diesel could surge past $5/gallon this year due to geopolitical tensions and refinery constraints.
What happens next
- Intermodal's cost benefits could become even more pronounced if diesel prices keep climbing.
- Some analysts predict diesel could surge past $5/gallon this year due to geopolitical tensions and refinery constraints.
- Shippers may need to increase their planning lead times, as intermodal can take longer than traditional truckload.
Sources
Quick answers
What happened in Intermodal Savings Surge with High Diesel Costs?
Intermodal offers 10-25% savings over truckload due to better fuel efficiency as diesel costs potentially hit $4.00+/gallon data.
Why does Intermodal Savings Surge with High Diesel Costs matter?
Intermodal's cost benefits could become even more pronounced if diesel prices keep climbing. Some analysts predict diesel could surge past $5/gallon this year due to geopolitical tensions and refinery constraints. That price jump would further squeeze trucking margins, making intermodal a more attractive option for shippers seeking cost savings. Shippers may need to increase their planning lead times, as intermodal can take longer than traditional truckload. Capacity and equipment availability are key factors for shippers to consider when shifting freight to intermodal. They should also assess the suitability of their goods for intermodal transport, considering factors like fragility and temperature sensitivity.
