From Yahoo Finance: 2025-06-11 09:30:00

Intermodal carriers, including Schneider National, are feeling more optimistic about the trade war situation, with worst-case scenarios becoming less likely. Schneider’s CEO noted a return to seasonal demand, with volume weaknesses in some areas offset by strengths in others.

Schneider expects growth in its single-line intermodal service from Mexico to Chicago and is seeing flat to slightly higher intermodal pricing. J.B. Hunt Transport Services also reported stable intermodal demand and pricing, with optimism for the peak season.

While Schneider’s intermodal revenue per load increased, J.B. Hunt saw a decline in this metric. J.B. Hunt remains encouraged by volume growth trends in the East and is focused on improving network balance.

Both companies are seeing signs of a closer equilibrium in the truckload market, with some customers engaging in scenario planning for potential market tightening. J.B. Hunt’s COO expressed optimism for the freight market, noting decent demand and ongoing truck capacity exits.

Overall, both Schneider and J.B. Hunt are experiencing stability and growth in their respective intermodal and truckload businesses, with signs of market equilibrium on the horizon. The companies remain optimistic about future growth opportunities and are focusing on network improvements. Schneider is experiencing low to mid-single-digit year-over-year price increases on its TL contracts this bid season, with expectations for higher pricing in 2025. Despite the rate hikes, the impact on margins is uncertain as the industry struggles to recover from years of cost inflation. Schneider has seen positive results with recent rate increases, especially with large shippers utilizing trailer pools, leading to margin improvement in the first quarter.

The company aims to achieve over $40 million in cost reductions through tractor utilization and other initiatives. Schneider anticipates potential savings to increase further, as historical data shows a track record of surpassing targets. Equipment sales could provide a boost as tariffs drive up new truck prices, increasing the value of used equipment.

Schneider has refrained from adjusting its full-year 2025 adjusted earnings-per-share guidance, which was previously reduced by 17%. However, the company hinted at a possible narrower range, potentially higher at the midpoint, depending on second-quarter performance. Despite this, shares of SNDR rose by 2.4% on Tuesday, with JBHT shares up by 2.5%, outperforming the S&P 500’s 0.6% increase.



Read more at Yahoo Finance: Intermodal carriers getting ‘a bit more optimistic’