Intermodal volumes grow 6.2 percent

Growth in North America attributed to higher fuel prices, lack of truck capacity and strong economic performance.

   Growth in North American intermodal volumes continued at a healthy, albeit slightly slower pace in the second quarter of 2018, according to the latest Intermodal Market Trends and Statistics report from the Intermodal Association of North America (IANA).
   Shipments for the quarter grew 6.2 percent compared with the same three-month period a year ago, down from the 7.2 percent growth rate seen in the first quarter, but still up from the 5.4 percent growth rate for the full year in 2017.
   International volumes increased 4.8 percent, while domestic containers grew 6.1 percent and trailer loads surged 18.1 percent.
   Joni Casey, president and CEO of IANA, attributed the continued growth primarily to higher fuel prices, a lack of available trucking capacity and strong economic growth in the region.
   According to the most recent data from the the Association of American Railroads, intermodal shipments carried by U.S.-based railroads climbed 6.9 percent in July, helping volumes through the first seven months of 2018 to grow 6.1 percent year-over-year to 8.3 million containers and trailers.
   As a result of increased demand and higher fuel prices, growth in North American intermodal rates also has been accelerating. Pricing jumped another 10.9 percent in June, the largest year-over-year increase since August 2011 and the 21st consecutive monthly year-over-year increase, according to the latest Cass Intermodal Price Index.
   IANA said in its report that during the second quarter, shipments in the seven highest-density trade corridors tracked by the association, which accounted for 63.2 percent of total volumes, were up a combined 6.6 percent.
   The Northeast-Midwest corridor exhibited the largest increase by far at 12.8 percent, followed by the South Central-Southwest, which saw year-over-year growth of 8.4 percent for the quarter. The intra-Southeast, Midwest-Northwest, trans-Canada and Midwest-Southwest lanes grew 7.1 percent, 6.2 percent, 4.4 percent and 4.2 percent, respectively, while volumes in Southeast-Southwest lane ticked up 0.8 percent.
   Traffic growth for Intermodal Marketing Companies also slowed slightly in the second quarter, but was still up 10.6 percent year-over-year, with the vast majority of gains taking place in the highway segment, according to IANA. IMC revenues grew 28.6 percent for the quarter compared with a 27.1 percent bump in the first quarter of 2018.