July intermodal volumes see declines, reports IANA

Intermodal volumes saw declines in July, according to data provided to LM by the Intermodal Association of North America (IANA).

Total July volume, at 1,340,158 units, were off 9.8% annually, faring worse than June and May decreases, at -7.1% and -8.8%, respectively.

Domestic containers, at 649,218, were down 1.9%. Trailers, at 56,422, saw a 19.9% annual decline. And all domestic equipment, which is comprised of trailers and domestic containers, totaled 705,640, for a 3.6% annual decrease. ISO, or international, containers, dropped 15.7%, to 634,518.

On a year-to-date basis through July, total intermodal units, at 9,428,639 units, were off 9.6% annually. Domestic containers were down 5.5% annually, to 4,544,134, and trailers fell 24.2% annually, to 432,298. All domestic equipment totaled 4,976,432, for a 7.4% decline. ISO containers were off 11.9%, to 4,452,207.

In its recently-issued 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.

And from a seasonal perspective, IANA said that things look more promising over the second half of 2023.

“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.”

IANA President & CEO Joni Casey told LM that intermodal volumes, for the second quarter and first half of 2023, did not meet expectations.   

“We were hoping for a little more dynamic increase in loads, but slower demand impacted volume more than expected,” she said. “It has also taken longer for more positive GDP numbers to work their way into the supply chain. Q2’s volume related to auto production though, has been a welcome bright spot for intermodal.” 

And she added that a combination of still-high inventories, inflation, and reduced consumer demand are all contributing factors for lower intermodal volumes, with the caveat that it is perhaps slightly weighted towards reduced consumer spending.

When asked about prospects for the 2023 Peak Season, from an intermodal perspective, Casey observed 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.