Intermodal Spot Rates July 2020: A look by market #DrayNowData
A DrayNow Data Deep Dive
There has been a bit of a sigh of relief these past couple of weeks in Intermodal, as rates increase, and we see volume coming back from the over the road truckload market. As is being reported across the industry by publications like JOC and FreightWaves, DrayNow is also seeing Intermodal spot market rates increase in July and into August.
However, on the DrayNow Platform we have noticed a major difference in spot rate behavior by market.
According to recent JOC analysis, Intermodal spot rates increased around 8% from June to July this year. At DrayNow, we are seeing a similar trend across all of our markets when all the data is aggregated. However, if you dive into the individual markets you will see spot rates increasing or decreasing.
Spot Rates by Market on the DrayNow Platform
The largest jump in intermodal spot rates on the DrayNow Platform from June to July is in LA, at a 21% increase month over month. This is not surprising, especially as equipment shortages tighten the already constrained intermodal truck capacity. In fact, we have seen spot rates increase in LA every month since they bottomed out in April, at a growth of 50% from April to July.
Atlanta has also seen overall spot growth since April, but not nearly as dramatic as the Los Angeles Market. The difference in rates between April and July is an increase of 22%.
The most interesting trend is Chicago. Though Chicago saw initial growth in spot rates after April, the rates are decreasing slightly from June into July by 6%. However, spot rates overall are up 14% from April to July.
We are curious to see how intermodal trucking spot rates continue to fluctuate in this unprecedented time. It is important to remember that especially in Intermodal these fluctuations can vary greatly between markets. Equipment shortages, regional truck load rates, even delays incurred at the rail can greatly impact the differences in rates month to month.
The DrayNow platform and TRUprice tool strongly supports our customers to better understand how to price their freight in a changing climate. Not all intermodal markets are the same!
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