May intermodal volumes see mixed results, reports IANA

May intermodal volumes were mixed, according to data provided to LM by the Intermodal Association of America (IANA).

Total May volume—at 1,554,844 units—were down 3.8% annually. Trailers—at 75,535—saw a 26.6% annual decrease, steeper than April’s 24.9% downward spread. Domestic containers—at 700,943—saw a 5.7% annual increase. All domestic equipment, which is comprised of trailers and domestic containers, rose 1.3%., to 776,478. ISO, or international, containers—at 778,366—saw an 8.5% decrease.

Through the first five months of 2022, total intermodal volume—at 7,404,079 units—is down 5.9% annually. Domestic containers—at 3,451,055—are up 4.7%, and trailers—at 425,002—are down 18.0%. All domestic equipment—at 3,876,057—increased 1.6%, and ISO containers were off 13.0%, to 3,528,022.  

In a recent interview IANA President and CEO Joni Casey told LM that based on historical data trends, international volumes should pull ahead of domestic traffic in the coming quarters.

“It’s hard to predict when this will happen though,” she said. “Additional international container capacity and more consistent trade flows would drive this rebalancing. However, COVID lockdowns in China are a reminder of continued volatility in the intermodal supply chain.”

Looking at the state of intermodal service levels, Casey said that the service level issued experienced over the second half of 2021—in the form of facility capacity and congestion, driver and labor shortages, equipment misalignment, and adverse weather in some intermodal regions—continued, to some extent, in the first quarter.

And with truckload capacity showing signs of loosening up, Casey said she views the competition between intermodal and truckload as constant and highlighted by cyclical truckload capacity. And she said that it is worth highlighting the 5.5% increase in domestic container volumes in the first quarter.

When asked about the impact of inflation on intermodal, Casey said that with trains consuming far less fuel than over-the-road trucking, fuel inflation could theoretically advantage intermodal, while being only one of several variables affecting the market.

As for whether the market is in a freight recession, she said that is not the case.

“There isn’t currently a freight recession—some market segments are down vs. others, but the increasing commitments of adding container capacity, labor, and routes (service) bode well for an anticipated return to more normalized volumes across the board within the next year,” she said.