What would be the correct term? I've noticed this effect too. And it would make sense to me that it is sensitive to initial conditions. One fewer car on the road, or one car displaced by a small distance might just cause the slowdowns to happen in different places, or at different speeds.
Before looking to chaos, I might guess that traffic lights on city streets have an effect. When the light turns green, a bunch of cars hop on the on-ramp and form a concentration of cars on the freeway. As these concentrations catch up to each other, it may cause slowdowns.
A friend of mine has a nice view of the freeway from his window. He made the observation that when traffic is light, that cars tend to drive in packs. We watched for a few minutes, and he was right. You'd see 7 or 8 cars, then nothing for a half mile, then 5 or 6 cars... We guessed traffic signals at the onramps caused the groupings.