October intermodal volume sees declines, reports IANA

Following September, which saw across-the-board volume declines, due to a pairing of still-high trade activity and difficult annual comparisons, October intermodal volume remained on the same path, according to data provided to LM by the Intermodal Association of North American (IANA).

Total October volume—at 1,534,650 units—decreased 10.0% annually, below September’s 7.3% annual decline. Trailers—at 98,324—fell 14.3%, not quite as steep as September’s 15.2% annual decline, and domestic containers—at 706,746—were off 6.3%. All domestic equipment, which includes trailers and domestic containers—at 805,070—decreased 7.3%. ISO, or international, containers—at 729,580—saw a 12.8% annual decrease.

On a year-to-date basis through October, total volume was up 6.5%, to 15,572,886 units. Trailers—at 1,004,728—rose 4.9%, and domestic containers—at 6,651,208—increased  2.9%. All domestic equipment was up 3.2%, to 7,655,936. ISO containers rose 10.0%, to 7,916,950.

Earlier this year, IANA said that the outlook over the remainder of 2021 is solid, with the pairing of strong domestic demand and weak annual comparisons as key factors. And it added that intermodal volumes are expected to be up 9% annually for the year, with ISO leading the way, with an expected annual gain of almost 13%. Domestic container moves are pegged to be up a little more than 6%, with trailer loads estimated to be up between 1.5-to-2.5%.

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 recently 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.

IANA President and CEO Joni Casey told LM in a recent interview that in terms of supply chain challenges like port congestion, a lack of empty containers, chassis supply, and the driver shortage, in terms of their collective impact on intermodal, it is important to keep in mind are a direct result of the pandemic and its impact on the economy.

“It is not going to be worked off, in the short term,” she said. “We have had unprecedented freight volumes, following the bottoming out of traffic from the middle of 2019 or a little bit later. And nobody could have anticipated, or planned for, the growth in freight and cargo shipments we have seen in the last year-plus. All components of the international supply chain have been impacted: ocean, marine terminals, railroads, truckers, and inland facilities.

There is no stone left unturned, in terms of people trying to deal with many challenges and issues. I think you are seeing some ancillary issues crank up, too, with the Covid outbreak in Yantian, China, which created bottlenecks in Asia that are now starting to unwind and hitting the West Coast. We have equipment issues, with the relocation of containers and chassis in high volume instance. It is really about making sure we can get the right equipment to the right place at the right time. With the volumes everyone is dealing with, it is a real difficult situation right now, but everyone is doing their best to try to remediate it.”