July intermodal volumes largely trend down, reports IANA

July intermodal volumes were mostly down, according to data provided to LM by the Intermodal Association of America (IANA).

Total July volume—at 1,485,325 units—fell 3.2% annually. Trailers—at 70,445—saw another significant decline, down 29.0%. Domestic containers—at 661,775—was the lone product group seeing an increase, up 1.6% annually. All domestic equipment, which is comprised of trailers and domestic containers, was down 2.4%, to 732,220. ISO, or international, containers—at 753,105—fell 3.8%.

Through the first seven months of 2022, IANA reported that total intermodal volume—at 10,428,630 units—is down 5.1%. Trailers—at 570,241—are down 20.4%, and domestic containers—at 4,806,591—are up 5.1% annually. All domestic equipment—at 5,376,862—are down 0.9%. ISO containers—at 5,051,768—are down 10.8%.

Looking at ISO container volume levels, IANA President and CEO Joni Casey recently explained that ISO container volumes were flat, or dropped, in the second half of last year.

“This would normally position international well for the second half of this year based on annual comparisons, but the segment faces potential crosswinds such as: continued port congestion, COVID lockdowns in China, and chassis supplies,” said Casey. “The absolute international container volumes actually did surpass domestic container volumes this quarter, which is more the norm.”

When asked to assess prospects for the 2022 Peak Season, Casey said that while Peak Season has not gone away, it has flattened over the years, with the expectation that it is expected to continue, with more steady traffic patterns versus peaks and valleys throughout the year.   

“There could be a noticeable increase in volumes heading into the end of the year holiday season, which would also be normal,” However, volumes still remain dependent on the issues identified previously.”

As for the impact of inflation and still-high, while declining, diesel prices on intermodal, Casey said that inflation reduces consumer spending and the demand for goods but could favor intermodal business by reducing transportation time sensitivity.

“Higher diesel prices also work in intermodal's favor, supporting the pricing competitiveness of intermodal vs. over-the-road,” she said.