August intermodal volumes remain on the right side of growth, reports IANA

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

Total August volume, at 1,585,012 units, increased 8.3% annually and topped July’s 1,528,132 units.

Domestic containers, at 745,561, increased 5.0% annually, with trailers, at 50,411, down 3.3%. All domestic equipment, which is comprised of domestic containers and trailers, rose 4.4%, to 796,972 units, and ISO, or international, containers, came in at 788,040, for a 12.6% annual increase.

On a year-to-date basis through August, IANA reported that total intermodal volume is up 9.0% annually, to 11,874,121 units. Domestic containers are up 5.1% annually, to 5,521,200, and trailers were down 20.3%, to 385,988. All domestic equipment, at 5,907,188, is up 2.9%. ISO containers, at 5,966,933, rose 15.8%.

In a previous interview, IANA President & CEO Joni Casey said that imports have been the primary growth driver for intermodal volumes, adding it is especially true for international containers, but also for domestic containers which have seen benefits 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.