JOC Research Note: Rail the better economic bet for shippers in Q3
Intermodal shippers should save more money using rail in the third quarter compared with this spring when the coronavirus disease 2019 (COVID-19) closed US businesses, with trucking rates climbing in June and July, particularly in Southern California where truck and rail capacity are extremely tight.
Union Pacific Railroad is instituting a $500 surcharge on excess contract cargo. Additionally, two intermodal marketing companies have told JOC.com that UP is raising spot rates $500 on all California outbound lanes, except to Miami where it will raise rates more than $1,000 per container. UP doesn’t comment on intermodal pricing.