Intermodal volume decline continues in September, at a reduced rate, reports IANA

Intermodal volumes saw another decline in September, amid signs of sequential improvement, according to data provided to LM by the Intermodal Association of North America (IANA).

Total September volume, at 1,410,278 units, was off 4.0% annually, continuing a trend of slimming sequential declines, following 7.5% and 9.8% annual declines, in August and July, respectively.

Domestic containers were again the lone intermodal segment to see an increase, increasing 5.0% annually, to 685,084 units, topping August’s 1.8% annual gain. Trailers were off 22.1%, to 51,731 units, fared better than August’s 27.8% annual decrease. And all domestic equipment, which is comprised of trailers and domestic containers, was off 2.5%, to 736,815 units, better than August’s 1.0% annual gain. ISO, or international, containers, at 673,463 units, fell 10.2% annually, an improvement over August’s 13.7% annual decline.

On a year-to-date basis through September, total intermodal units, at 12,302,040 units, were off 8.7% annually. Domestic containers were down 3.5% annually, to 5,940,138, and trailers fell 24.4% annually, to 536,156. All domestic equipment totaled 6,476,294, for a 3.5% decline. ISO containers were off 11.9%, to 5,825,746.

In the most recent edition of its Intermodal Quarterly Report, IANA explained that sluggish economic conditions are impeding domestic output and containerized imports. And it added that both wholesale and retail inventories are still at “relatively high levels,” and subsequently dampening the need to move goods, while truckers have hired drivers and also brought on tractor and trailer capacity, which it said is creating a competitive environment where truckers are chasing traffic that would typically move via intermodal.

From a seasonal perspective, IANA said, at the time, that things were looking more promising over the second half of 2023, which appears to be the case based on the improving sequential volumes.

“Container volume is following a more typical peak season pattern and points to higher results in the second half of the year,” said IANA. “Loadings peaked in March last year, and weaker comparisons in the second half of 2022 will help boost this year’s performance, supported by improvements in port throughput, chassis supply, drainage availability, and rail network fluidity.”

When asked about prospects for the 2023 Peak Season, from an intermodal perspective, IANA President & CEO Joni Casey previously told LM that with the risk of recession lowering and inventories being worked down, IANA is anticipating more positive numbers for the second half of the year including 2023 peak season, albeit more muted than previous peaks.

Todd Tranausky, Vice President at Indianapolis-based freight transportation consultancy FTR made it clear that current market conditions remain underwhelming, with the sector remaining under a lot of stress and competitive headwinds.

On a positive note, like rail carloads, he said intermodal volumes have seen a bit of a post-Labor Day bump, with the caveat that it is nowhere near what is normally expected, especially as it relates to Peak Season.

“It is not normal to see as muted of a bump as we have seen this year, when you think about blank sailings, lower import levels, lower overall economic activity, and consumer health,” he noted. “It is a muted, at best, Peak Season and well off of last year and the five-year average. There is not a lot of momentum in intermodal.”