Intermodal volumes remain strong in November, reports IANA

Intermodal volumes continued to grow in November, according to data provided to LM by the Intermodal Association of North America (IANA).

Total November volume, at 1,519,046 units, headed up 5.3% annually, said IANA.

Trailers were again the lone intermodal segment to see a decline, falling 7.0% annually, to 52,461 units. Domestic containers, at 744,883, headed up 6.0% annually. All domestic equipment, which is comprised of trailers and domestic containers, came in at 797,344 units, for a 5.0% annual increase. ISO, or international, containers, at 721,702, increased 5.7% annually.

On a year-to-date basis through November, IANA reported total volume, at 16,557,048 units, posted an 8.5% annual increase. Trailers, at 538,706, fell 16.6%, and domestic containers, at 7,759,795, rose 5.0% annually. All domestic equipment, at 8,298,501, saw a 3.3% annual gain. ISO containers posted a 14.3% annual gain, to 8,258,547.    

This continues a strong run of intermodal growth, as per IANA’s data.

Third quarter intermodal volumes maintained solid momentum, according to data issued in its “Intermodal Quarterly.” IANA reported that total third quarter volume, at 4,627,631 units, headed up 9.8% annually, growing for the fourth consecutive quarter, following eight straight quarters of annual declines. The first and second quarters saw annual gains of 8.8% and 7.7%, respectively.

The IANA report stated that consumers maintained “aggressive spending” in the third quarter, which matched up with third quarter retail sales posting a 1.0% annual gain, representing the highest quarterly annual growth percentage, going back to the initial pandemic recovery in 2021, noted IANA. It also observed that despite a two-year slump in manufacturing and problematic homebuilding, the economy is on solid footing.

IANA said that intermodal volume patterns are following a typical seasonal upswing pattern, coming to a late summer peak and subsequently declining over the balance of the year. It said that 2024 intermodal growth has been largely driven by the surge in West Coast imports that were diverted away from the brief East and Gulf Coast port labor stoppage that subsequently led to international container traffic gains.

IANA explained that the pairing of import growth and resilient economic activity is helping to deliver strong international intermodal volumes year-to-date, adding that fourth quarter annual comparisons are expected to be more difficult, with the segment expected to be up 12.6% annually.

Former IANA President & CEO Joni Casey told LM that third quarter volumes saw a boost in the form of growth in international containers, fueled by West Coast imports and pull forward volumes, due to a threat of an East and Gulf Coast port labor stoppage, which he said were the key growth drivers in the quarter.

“We expect international loads to remain strong through the end of the year,” she said.

When asked about the impact of the brief East and Gulf Coast port’s labor stoppage on intermodal, she explained that the immediate impact was negligible.

“However, until a final contract is in place, we will probably see additional volume growth attributed to this uncertainty in Q4,” said Casey. “Q1 volumes will be driven by the status of a new labor agreement and traditional Asian New Year traffic.”

With many experts saying the freight market is bottoming, or approaching a bottoming, coupled with excess truckload capacity still a factor, Casey observed that a tightening of truckload capacity would be viewed as a tailwind for intermodal business, adding that it is “a matter of time when over-the-road capacity becomes more constrained,” with projections running the gamut from the second quarter to the third quarter in 2025.