In recent years, the intermodal transportation sector has witnessed a significant shift in sentiment among carriers, reflecting the dynamic interplay of market forces, regulatory changes, and evolving customer expectations. Intermodal carriers, which leverage multiple modes of transportation—such as rail, truck, and maritime—have traditionally operated within a framework characterized by stability and predictability. However, as the logistics landscape becomes increasingly complex, driven by factors such as e-commerce growth, supply chain disruptions, and sustainability initiatives, the attitudes and strategies of these carriers are undergoing a profound transformation. This article aims to explore the underlying factors contributing to this shift in sentiment, examining how intermodal carriers are adapting to new challenges and opportunities.

By analyzing industry trends, technological advancements, and the impact of global economic conditions, we will provide insights into how carriers are recalibrating their approaches to remain competitive and responsive to the needs of shippers. Understanding these sentiments is crucial for stakeholders across the supply chain, as it not only influences operational decisions but also shapes the future of intermodal transportation in an increasingly interconnected world. Through this exploration, we will uncover the implications of these changes for the industry and offer strategic recommendations for navigating this evolving terrain.

Intermodal Carriers Show Renewed Optimism

Intermodal carriers expressed a more positive outlook compared to a few weeks prior during an investor conference in Chicago on Tuesday.

Executives from Schneider National (NYSE: SNDR) conveyed a sense of increased optimism since their first-quarter earnings call on May 1. At the 2025 Wells Fargo Industrials & Materials Conference, the multimodal logistics provider noted that previously anticipated worst-case scenarios at the onset of the trade conflict now seem unlikely to materialize.

Mark Rourke, Schneider’s President and CEO, highlighted a return to seasonal demand from certain customer segments, though he characterized overall trends as “not entirely normal.” He indicated that while volumes remain weak on the West Coast—affected by fluctuating imports from China—gains are being seen in intermodal routes from Mexico and in the Midwest.

Rourke foresees a potential inventory build-up before the conclusion of the 90-day tariff pause between the U.S. and China. Some of Schneider’s clients anticipate a significant surge in freight, while others expect a steady flow of shipments.

Strategic Positioning in the Intermodal Market

The company noted that its single-line intermodal service from Mexico to Chicago via the Canadian Pacific Kansas City (NYSE: CP) corridor positions it to outpace the industry. Schneider anticipates that new business in this lane, along with gains across its network, will mitigate any demand disruptions caused by tariffs.

So far this bidding season, Schneider's intermodal contract pricing has remained stable or increased slightly. The company is engaged in fruitful discussions with clients who are increasingly interested in intermodal solutions as they prepare for a tightening truckload market.

J.B. Hunt Transport Services (NASDAQ: JBHT) also reported that the current headlines around intermodal demand may be overstated, noting that demand has remained relatively steady. The company is preparing for a satisfactory peak season while maintaining a positive outlook on supply dynamics.

“Overall, business has been much more stable than market concerns suggest,” remarked Brad Delco, senior vice president of finance at J.B. Hunt, during the conference.

Volume, Revenue, and Yield Performance

Similarly, J.B. Hunt indicated that the intermodal bidding process is yielding flat to slightly increased pricing, particularly on its primary lanes.

Schneider's intermodal revenue per load saw a 1% increase year-over-year in the first quarter (excluding fuel surcharges), while J.B. Hunt experienced a 1% decline. However, J.B. Hunt achieved a 13% volume increase in the East, which has a shorter haul length, impacting yield metrics during that time. The company remains optimistic about recent growth patterns despite the absence of typical demand catalysts for modal conversion, such as rising fuel costs and increasing truckload rates.

The company is focused on achieving a balanced growth trajectory across its network while enhancing both volume and yield.

Truckload Market Moving Toward Equilibrium

In discussing the truckload (TL) market, Schneider indicated that conditions are moving closer to equilibrium. They pointed to notable shifts in data—such as tender rejections and spot rates—during specific events like Roadcheck and the produce shipping season as indicators of this trend. Some of Schneider’s clients are also engaging in strategic planning to prepare for potential market tightening.

Nick Hobbs, J.B. Hunt’s chief operating officer and president of highway and final mile services, expressed a cautious sense of optimism regarding the freight market. He noted decent demand and the ongoing exit of truck capacity, while also highlighting recent fluctuations in spot rates as carriers adjusted to the produce season in Florida.

In terms of pricing, J.B. Hunt’s dedicated contracts are seeing increases of approximately 3.5%. However, this figure remains somewhat below the pricing levels seen during more favorable market conditions.

Strategic Contract Pricing and Operational Improvements

“Equilibrium is approaching, but there remains fragility within the supply chain,” Hicks cautioned, suggesting that even minor shifts could have significant impacts.

Schneider reported low to mid-single-digit year-over-year price increases on its one-way TL contracts this bid season and reiterated expectations for higher pricing in this segment in 2025. The extent to which these rate increases will influence margins remains uncertain, as the industry continues to grapple with the effects of prolonged cost inflation.

“We have adhered to our strategy for achieving contractual improvements,” Rourke stated. He added that Schneider is prepared to place one-way equipment into the spot market on specific lanes if desired contract pricing cannot be secured. While the sustainability of recent rate increases is yet to be determined, favorable conditions have been noted with major shippers utilizing extensive trailer pools.

Margin Growth, Cost Savings, and EPS Outlook

In a departure from the broader industry trend, Schneider’s combined TL fleet—encompassing dedicated services—reported a 130 basis point improvement in year-over-year margins for the first quarter. However, their operating ratio of 95.9% remains below historical averages.

The company has identified over $40 million in potential savings through enhanced tractor utilization and other initiatives. This suggests that total savings could increase, given their track record of meeting and exceeding targets.

Moreover, gains from equipment sales, which are recorded as offsets to operating expenses, may provide additional support. As tariffs elevate the cost of new trucks, the value of used equipment has increased, improving Schneider's position.

While Schneider refrained from adjusting its full-year 2025 adjusted earnings-per-share guidance—previously lowered by 17% to a range of 75 cents to $1 during the first-quarter call—it indicated that there may be room to narrow the range. An upward adjustment at the midpoint is possible depending on second-quarter performance.

On Tuesday, shares of SNDR rose by 2.4%, while JBHT shares increased by 2.5%. The S&P 500 index was up 0.6%.

Conclusion: Signs of Stability with Cautious Optimism

The overall tone at the 2025 Wells Fargo Industrials & Materials Conference signaled growing optimism from major intermodal players like Schneider and J.B. Hunt. While challenges such as tariff uncertainty and weak West Coast volumes persist, strategic network advantages, steady pricing, and operational efficiencies are helping carriers navigate through market volatility. As indicators of market equilibrium continue to strengthen, these companies are positioning themselves for potential upswings while maintaining a cautious eye on evolving supply chain dynamics.

Stay Ahead in a Shifting Freight Market

As the trucking and intermodal industries edge closer to equilibrium, staying informed is more important than ever. Trends in freight volume, pricing, and capacity are evolving quickly—and so are compliance demands.

At Labworks USA, we help carriers navigate not just the freight market, but the regulatory landscape too. Whether you're looking for expert support with DOT drug and alcohol testing, FMCSA Clearinghouse registration, or just want to stay in the loop with industry insights, we’re here to help.

Connect with our knowledgeable DOT Consortium team today—we’re committed to helping you stay compliant, competitive, and confident no matter how the market shifts.

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