December and calendar year 2023 intermodal voumes are mixed, reports IANA
Total December volume, at 1,410,345 units, was up 6.4% annually, posting annual growth for the second consecutive month, following November’s 3.8% annual increase. For all of 2023, total intermodal volume came in at 16,669,980 units, for a 5.9% annual decrease.
Intermodal volumes, for the month of December, largely saw annual growth, while calendar year 2023 volumes were down across the board, according to data provided to LM by the Intermodal Association of North America (IANA).
Total December volume, at 1,410,345 units, was up 6.4% annually, posting annual growth for the second consecutive month, following November’s 3.8% annual increase, which snapped a snapping a stretch of slimming sequential, annual declines, with October down 0.4% and 4.0%, 7.5% and 9.8% annual declines, in September, August and July, respectively.
Domestic containers, at 659,912, were up 4.4% annually, and trailers, at 58,803, were down 24.7% annually, the lone segment to see a decline. All domestic equipment, which is comprised of trailers and domestic containers, was up 1.2%, to 718,715. And ISO, or international containers, rose 12.5%, to 691,630.
For all of 2023, total intermodal volume came in at 16,669,980 units, for a 5.9% annual decrease. Trailers saw the steepest decline, falling 23.7%, to 704,970 units, and domestic containers, at 8,048,460, fell 1.2%. All domestic equipment, at 8,753,430, decreased 3.5% and ISO containers were off 8.4%, to 7,916,550.
In its “Intermodal Quarterly” report released in October, IANA explained that the intermodal sector faces a number of headwinds, in the form of import levels and inventory rebuilding remaining sluggish amid the overall strong performance of the economy. And it added that key sectors like housing and manufacturing continue to “show muted activity.”
What’s more, it added that truckers have reduced rates in an effort to attract shippers and gain a larger share of a shrinking freight market—in turn having a negative impact on intermodal. IANA also pointed to how inflation-adjusted inventories, not including automotive, are around 13% higher than pre-pandemic peaks. Which it said plays a key role in the decreased demand for freight, as retailers and warehouses sit on out-of-season product, as well as overbought, pandemic-related items.
