Lane-level rates in the intermodal contract rate data set (SONAR tickers: IMCR and IMCRPM for total and per-mile rates, respectively) are produced weekly for 67 distinct origin-destination pairs and for “Transcontinental” and “Local East” indices. The rates reflect processed transactions in the domestic rail intermodal segment (i.e., primarily for the movement of 53’ domestic containers). Rates include fuel surcharges, exclude all non-fuel accessorial charges and are for door-to-door movements.
Rates are a calculated aggregation of payments made by at least three distinct shippers in origin-destination pairs that approximate the produced data granularity. Extra weight is given to more recently-processed transactions as well as transactions that are closer to the centroid of the named origin and destination.
Processed transactions are only used in the calculation process if they are no more than 100 miles from the centroid of origin and destination in the named SONAR granularity. That is intended to reflect a maximum drayage distance of 100 miles both at origin and destination.
The 67 intermodal contract lane rate granularities are as follows:
The Transcon and Local East Indices are averages of the following lane contract rates.
Lanes used in Transcon Index (IMCRPM.TRANSCON):
Lanes used in Local East Index (IMCRPM.LOCALEAST):
Intermodal Marketing Companies (IMCs), shippers, 3PLs, financial analysts and Class I railroads. Stock analysts may be most interested in the densest lanes such as IMCRPM.LAXCHI and the transcontinental and local east indices.
The rates represent the door-to-door intermodal contracts including fuel, but excluding all other assessorials. The origin-destination pairs included in the IMCR/IMCRPM data set cover the majority of the domestic intermodal lanes with high average daily volume.
For shippers, the rates are intended to be used as a tool during the request for proposal process and for assessing potential savings that can be realized by using rail\intermodal rather than truckload. Comparable dry van truckload rates, which also include fuel surcharges, are available in the Market Dashboard app within SONAR.
The aggregated intermodal contractual rate data points (i.e., Transcontinental Headhaul Lanes and Local East Lanes) are helpful in assessing general national pricing trends and market conditions more quickly than looking at all individual lanes, but with more precision than using a national average. “Transcon” and “Local East” is how publicly-traded intermodal carriers categorize lanes, which helps stock analysts understand trends before carriers make them public.
Importers or other shippers that move freight eastbound from the Southern California ports and/or warehouses to dense consumption centers in the East Coast and Midwest appreciate having an index of only relevant Transcontinental Headhaul Lanes. Those lanes are less competitive with truckload and, therefore, are less influenced by truckload market conditions.
Local East Lanes Index includes only dense intermodal lanes that are in the eastern one-third of the country (i.e., Chicago and points east). Those lanes, in general, are highly competitive with truckload and are, therefore, more influenced by truckload market conditions and rail service levels than longer haul intermodal lanes.
