Third quarter intermodal volumes fell for the first time in five quarters, according to the most recent edition of the Intermodal Quarterly report recently issued by the Intermodal Association of North America (IANA).
For the third quarter, IANA reported that total intermodal volume—at 4,583,852—fell 2.9% annually. Trailers—at 289,264—were off 11.2%, and domestic containers—at 1,982,977—fell 5.7%. All domestic equipment—at 2,272,241—were down 6.5%. The lone category posting an annual gain was ISO, or international, containers—at 2,311,611—for a 0.9% increase.
On a year-to-date basis, for the first nine months of 2021, total shipments—at 14,038,236—saw an 8.7% annual increase. Trailers—at 906,404—headed up 7.5%, and domestic containers—at 5,944,462—increased 4.1%. All domestic equipment—at 6,850,866—rose 4.6%, and ISO containers—at 7,187,370—headed up 13.0%.
IANA said that the quarterly decrease likely reflected both supply chain disruptions and weather issues over the course of the third quarter. And it added that the third quarter’s volume tally is off 5.3% compared to the third quarter of 2018 ahead of tariffs and the Covid-19 pandemic and came on the heels of a 20.1% annual gain in the second quarter of 2021, the largest gain since the Great Recession in 2010 and the second-largest growth rate this century.
Addressing the trailer decline, which followed an 18.5% second quarter increase, IANA said that the third quarter annual decline reflected the significant drop seen in the second quarter of 2020, adding that trailer volumes have been down for several years, down to less than half of their loads in 2000.
Total Intermodal Marketing Company Loads, for the third quarter, saw a 10.6% annual gain, to 1,200,486, and total revenue rose 31.3%, to $3,159,542,139. IMC average per intermodal load and average per highway load, at $3,233 and $2,314, were up 18.8% and 23.2%, respectively.
When asked how much of a concern are the current supply disruptions, like port congestion and the labor shortage, on intermodal volumes, IANA Director of Marketing & Communications David Garofalo told LM that the point to keep in mind is that the current challenges are a direct result of the pandemic and the impact on the economy.
“In the short term, we’ve had unprecedented freight volumes that could not have anticipated or planned for along with all the components of the intermodal supply chain being impacted,” he said. “Issues will remain until the right equipment is in the right place at the right time. The relocation of both containers and chassis has been an issue and again, it isn’t so much a shortage of equipment as it is the overwhelming amount of freight working through the intermodal supply chain.”
As for how things are shaping up for the fourth quarter and the holiday shopping season, he said that conditions will remain very similar to what exists today through the fourth quarter.
“Given the volumes that everyone is experiencing, it will take some time to work through all the supply chain challenges,” he said.