IANA reports Q1 intermodal gains

Intermodal volumes may be slowly returning back to growth mode, it appears.

The Intermodal Association of North America (IANA) reported this week in its Intermodal Market Trends and Statistics report that first quarter intermodal volumes saw annual growth for the second straight quarter. Prior to the last two quarters, volume growth saw annual declines during the second and third quarters of 2016, which were preceded by 25 consecutive quarters of growth. 

Total first quarter volume movements-at 4,240,884-were up 2 percent annually, ahead of the first quarter’s 1.0 percent increase.

International, or ISO, containers led the individual intermodal categories tracked by IANA, with a 2.9 percent annual increase to 2,141,383 for its second straight increase following two quarters of declines. Domestic containers rose 1.3 percent to 1,789,108. Trailers eked out a slight annual gain, up 0.3 percent to 310,393. 

IANA said in the report that this performance is impressive in that it follows a 2.0 percent gain from the first quarter of 2016, which, it said, suggests the first quarter of 2017’s increase was real growth, as opposed to having an easier annual comparison.

Looking at international volumes, IANA said that while first quarter volumes were up 2.9 percent and U.S. international volumes were up 2.5 percent, U.S. container imports were lower, seeing a 1.6 percent gain. It explained that international growth and container import growth tend to be fairly close, but that was not the case in 2016 and into this year so far.

IANA President and CEO Joni Casey said that the first quarter international volumes were “fueled by increased consumer confidence and spending.”

As for domestic containers, which recorded less than half the growth rate of international and fell far short of the fourth quarter’s 6.4 percent annual increase, IANA pointed to declines in the Midwest, Northeast, and Southeast regions.

“We would have expected gains to be a little higher, but there are still strong headwinds particularly in East with truck capacity relatively loose and cost of fuel still low by comparison,” Casey said.

IMC performance: First quarter intermodal marketing companies total first quarter loads rose 7.5 percent to 829,339, with intermodal loads up 3.6 percent at 409,195 and highway loads up 11.6 percent at 420,144.

Intermodal revenue was up 5.6 percent to $1,067,370,211 and highway revenue saw a 13.8 percent annual gain to $604,276,493. Total revenue saw an 8.4 percent annual gain to $1,671,646,704. Average intermodal and highway revenue per load and each saw matching 1.9 percent annual increases art $2,608 and $1,438, respectively.

IANA’s Casey said that the total increase in IMC loads was driven by over-the-road volumes, as well as the result of loose truck capacity.