Forward Air Dumps Intermodal: What It Means for Your Loads & Rates
Forward Air is selling off its intermodal division and other 'non-core assets.' This move could shake up how freight moves and impact your spot rates.
Forward Air Dumps Intermodal: What It Means for Your Loads & Rates
Heads up, drivers! Forward Air is clearing house, announcing they're selling off their entire intermodal business and other parts of their operation they call 'non-core assets.' This isn't just corporate shuffling; it’s a big deal that could shift freight patterns and hit your wallet, especially if you run lanes that often connect with rail.
Why the Sell-Off?
Forward Air has been trying to find a buyer for the whole company, but no dice. So, now they're breaking it up. Think of it like a truck owner-operator selling off a sleeper cab they don't use anymore to focus on their day cab hot shot work. They're trying to streamline and focus on what they do best, or at least what they think will make them more money.
- Focus on Core Business: They want to double down on less-than-truckload (LTL) and dedicated services. This means less competition in the intermodal game, but also potentially fewer options for shippers who rely on Forward Air for that service.
- Cash Infusion: Selling off assets brings in cash. This could mean they invest more in their remaining services, potentially improving efficiency or expanding their LTL network. Or, it could just be to shore up their balance sheet.
Impact on Your Loads & Rates
When a major player like Forward Air sheds an entire division, the ripple effect can be felt across the industry. Here’s what you need to keep an eye on:
- Intermodal Capacity Shift: Fewer players in the intermodal space could mean changes in capacity. If the buyer of Forward Air's intermodal business doesn't pick up all the slack, some freight might get pushed back onto the road. More road freight could mean tighter capacity for OTR drivers, potentially pushing up spot rates on certain lanes.
- Lane Adjustments: Shippers who used Forward Air for intermodal might look for new partners. This could create new opportunities for owner-operators in specific regions or on particular corridors. Keep an ear to the ground for changes in where the loads are moving.
- Rate Volatility: Anytime there's a major change in a segment of the market, expect some rate volatility. It might be a good time to negotiate harder, especially if you see an increase in available loads that used to go intermodal.
What to Do Now
Stay informed and be ready to adapt. Keep an eye on the freight boards and talk to your brokers. If you're running lanes that frequently interact with intermodal hubs, pay extra attention to how things are changing. This could be an opportunity to snag some better-paying loads if the market shifts in your favor. And remember, keeping your rig running strong is always key to cashing in on market changes. For top-notch repairs and maintenance that keep you rolling, check out The Truck Savers.
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