September intermodal volumes post gains, reports IANA

Intermodal volumes remained on a strong growth track in September, according to data provided to LM by the Intermodal Association of North America (IANA).

Total September volume, at 1,514,487 units, increased 7.4% annually.

Domestic containers, at 704,871, were up 2.9% annually, while trailers, at 46,996, fell 9.2%. All domestic equipment, which is comprised of domestic containers and trailers, rose 2.0%, to 751,867 units, and ISO, or international, containers, came in at 762,620 for a 13.2% annual increase.

On a year-to-date basis through September, IANA reported that total intermodal volume is up 8.8% annually, to 13,388,608 units. Domestic containers are up 4.8% annually, to 6,226,071, and trailers were down 19.2%, to 432,984. All domestic equipment, at 6,659,553 is up 15.3%. ISO containers, at 5,178,893, rose 16.3%.

These solid volumes follow IANA’s “Intermodal Quarterly” report, which stated that total second quarter volume, at 4,474,377 units, increased 7.7% annually, growing for the third consecutive quarter, following eight straight quarters of annual declines. The first quarter of 2023 posted 8.8% annual growth.

IANA observed in the report that U.S. businesses faced significant headwinds in the second quarter, including things like higher interest rates and lingering service sector inflation, coupled with a slowdown in retail sales and sluggish industrial activity. On a more positive note, it added that U.S. consumption remained strong, the labor market was consistent, and the core inflation rate made meaningful improvements.

“Imports were the primary driver for volume growth in the second quarter,” IANA President & CEO Joni Casey told LM. “This was especially true for international containers, but also for domestic containers which benefitted from transloading activities of West Coast traffic.”

When asked about the truckload capacity imbalance remaining intact, in terms of how it could impact domestic intermodal volumes, both now and into the coming quarters, Casey explained that excess truckload capacity will continue to impact the level of intermodal growth, especially on the domestic side. 

“The best prospects for higher utilization are lower interest rates, with signs pointing toward one Fed rate cut this quarter,” she said. “Fuel and insurance costs are additional variables that could favor intermodal.”

As for prospects for the 2024 Peak Season, Casey observed that despite a pull forward of imports, an August/September peak is still expected, with growth predicted to be in the double digits for the year despite tougher year end comparisons. 

Looking ahead, IANA said that with containerized imports on the rise, especially on the U.S. West Coast, the outlook for international containers moving by rail is forecasted to increase 13.8% annually for full-year 2024, despite tougher comparisons in the coming months. Transload volume from those imports and steady production volume will be an opportunity, albeit limited by excess trucking capacity, for domestic intermodal providers, it said, adding that domestic container gains are expected at only 3.5%, while the trailer segment is pegged to contract 19.3%. Total North American intermodal volume is anticipated to increase 5.2% for calendar year 2024.