SONAR Rate Intelligence now includes intermodal rates, enabling shippers to assess truckload-to-intermodal conversion savings effectively.
SONAR, the freight market intelligence platform, has expanded its Rate Intelligence feature by incorporating intermodal rates. This update enhances the tool's utility for shippers, freight brokers, and carriers, enabling them to make more informed decisions regarding truckload-to-intermodal conversion on various lanes.
New Features in SONAR Rate Intelligence
With the latest addition, users can now access and compare intermodal contract and spot rates alongside traditional van pricing. This side-by-side analysis allows for a comprehensive understanding of potential cost savings when shifting from truckload freight to intermodal options. For instance, intermodal contract pricing on the Chicago-to-Elizabeth, New Jersey lane is approximately 21.1% lower than the corresponding van contract rate, translating to about $593 in savings per load.
Details on Intermodal Capabilities
- Updated Data: Users can look up intermodal contract and spot rates, including tracking trends in rates and volumes for various lanes.
- Lane Resolution: The tool provides information on suggested in-gate and out-gate ramps, detailing distances from both origin and destination.
- Direct Comparisons: Rate Intelligence enables users to compute and compare both van and intermodal prices across several metrics such as rate per mile, flat rates, fuel surcharges, and changes over time.
- Trend Analysis: Users can review how intermodal rates and volumes have changed over the past year, either in absolute terms or relative to other metrics.
- Customized Evaluations: A feature allowing users to enter their rates and annual volume facilitates personalized calculations of potential savings.
- Access Options: Users can choose intermodal directly or navigate to it through existing van lane searches.
Comparative Analysis: The Chicago to Elizabeth Lane
Taking a closer look at the intermodal rates available on the Chicago to Elizabeth lane illustrates the practical implications of these changes:
- Rail Miles: The average intermodal transit distance is 808 miles.
- In-Gate Ramp: The starting point is at the Chicago 14th Street ramp (Global I) on Union Pacific, located just 1 mile from the city center.
- Out-Gate Ramp: The shipping ends at the Norfolk Southern ramp in Elizabeth, situated 3 miles from the destination.
Comparison Metrics
The following table summarizes the key economic indicators for intermodal versus truckload transport:
| Mode | Rate per Mile | Flat Rate | Month-Over-Month Change |
|---|---|---|---|
| Intermodal Contract | $2.77 | $2,220.92 | +7.66% |
| Van Contract | $3.58 | $2,813.88 | +9.15% |
| Van Spot | $3.92 | $3,081.12 | +6.52% |
Key Insights on Cost Savings and Trends
- Cost Advantages: Intermodal contracts are priced at approximately $2,220, substantially lower than the $2,813 for van contracts.
- Reliable Data: The intermodal contract rate sits comfortably within a confident range of $2,075 to $2,435, based on data from 46 observations over the past 41 days.
- Volume Provisions: Currently, the lane supports 283 domestic intermodal containers, marking it as a high-potential conversion lane.
- Increasing Trend: Intermodal contract rates have increased by 11.55% year over year, signaling growing interest and usage.
The Importance of Integrating Intermodal Data
The integration of intermodal rates into SONAR Rate Intelligence simplifies the decision-making process for shippers:
- Streamlined Workflows: Users can evaluate intermodal and truckload options within the same application, removing the need for external data sources.
- Enhanced Analysis: The tool highlights lanes where intermodal transportation represents a tangible cost-saving alternative to traditional truckload options.
- Empowered Discussions: Shippers can present data-driven insights rather than assumptions during negotiations with customers and carriers.
Frequently Asked Questions
What Does Truckload-to-Intermodal Conversion Entail?
This process involves transitioning freight normally transported by truck to rail shipping, with truck drayage at both ends of the journey. It typically benefits longer-haul routes where transit time allows for such changes.
What Data Is Included in SONAR Rate Intelligence?
The platform includes a variety of intermodal data, covering contract and spot rates, lane resolutions, rate trends, and their corresponding conversion savings estimates.
How Are Conversion Savings Calculated?
These savings are determined by comparing the flat rates of the van and intermodal contracts for the same lane, with total savings based on user-entered annual volumes.
Who Should Utilize Intermodal Rates?
Users including shippers, brokers, carriers, and 3PLs can leverage this data to assess transportation modes, manage procurement strategies, and deploy cost-effective solutions.
Accessing Intermodal Rates
SONAR's intermodal features are currently live and accessible. For more information or to request a demo, visit gosonar.com.
