Intermodal Shift Slow Despite Fuel Price Surge

Despite surging fuel prices, shippers have been slow to shift freight from trucks to intermodal rail, according to management from logistics provider J.B. Hunt Transport Services. In the company's latest earnings report, executives said 'shipper attitudes are little changed' even as truck capacity leaves the market and diesel costs spike. This suggests the current economic environment has not yet driven a significant conversion to intermodal transportation. 'We have not seen a meaningful shift to intermodal from over-the-road as a result of the fuel price increases,' said Shelley Simpson, J.B. Hunt's chief commercial officer, according to a report from FreightWaves. The comments provide insight into how shippers are responding to the challenging freight market conditions. While high fuel prices typically incentivize greater use of more fuel-efficient rail, the pace of that shift appears to be gradual so far. Intermodal - the use of containers that can be transferred between trucks, trains and ships - is often touted as a more sustainable logistics solution. But the industry is still working to overcome service reliability issues and other barriers to wider adoption. As the supply chain disruptions of the past year continue, maritime industry stakeholders will be watching closely to see if the economics eventually drive a more pronounced move toward intermodal freight transportation.