Subscribe to our free, weekly email newsletter!


IANA reports strong third quarter 2010 intermodal volumes

Domestic volumes hit an all-time high despite container shortage
By Jeff Berman, Group News Editor
November 05, 2010

While various freight trends have seen numerous stops and starts in 2010, intermodal transportation is not one of them, according to the results of the third quarter Market Trends report from the Intermodal Association of North America (IANA).

In the third quarter, IANA stated that third quarter intermodal loadings—at 2,995,043—were up 20.3 percent year-over-year. This was ahead of the second quarter’s 2,829,971 and behind the first quarter’s 3,019,310.

Along with a 20.3 percent annual gain in total intermodal loadings, IANA said that the four major intermodal categories it tracks were also showed gains. Domestic containers—at 1,162,460—were up 13 percent. International containers—at 2,011,775—were up 28.1 percent (marking the second time since the second half of 2006 that international topped domestic containers. All domestic equipment—at 1,591, 227—was up 11.7 percent, and trailers—at 428,767—were up 8.5 percent (trailers have been down 19 of the last 23 quarters).

“Intermodal activity, particularly from the international-driven side, is somewhat of a leading indicator as to what the expectations are for the economy,” said Tom Malloy, IANA Vice President of Member Services, in an interview. “A driver for intermodal’s continued momentum is the optimism—and confidence—by supply chain managers in bringing materials in from overseas.”

The Market Trends report supports this view, noting that the resurgence of international intermodal is primarily due to stronger container import volumes. But even with international container volumes up nearly 30 percent in the third quarter, IANA said they are still well below peak levels from the third quarter of 2006 as seasonally-adjusted third quarter international volumes are 11.7 percent below peak levels.

Domestic volumes for the third quarter, according to IANA, hit an all-time in the third quarter, with the report stating that domestic container shipments continuing to outpace the overall economic recovery in conjunction with intermodal shipments gaining share over other modes of freight transportation.

“Domestic activity is off the charts right now, especially for domestic containers of North American origin and termination, and are up over previous high points from 2008 and 2006,” said Malloy. “This is a good story. Had there been more containers [available] there likely would have been increased domestic container activity. This means equipment managers are doing a much better job of managing load-to-load churn, which is key for the companies that own them, the manager that runs them in order to maximize revenue opportunities for these pieces of equipment on an annual basis.”

IMC Performance: Intermodal Marketing Companies largely saw percentage gains on an annual basis in the third quarter, with intermodal loads—at 286,035—up 12.3 percent, and total loads, including highway which was down 7.9 percent at 144,284, up 4.6 percent at 430,859.

IMC intermodal and highway revenue—at $669,111,766 and $194,770, 436—were up 13.8 percent and 5.1 percent, respectively. Total revenue—at $843,083,202—was up 9.0 percent. Average revenue per intermodal load—at $2,339—was up 1.3 percent, and average revenue per highway load—at $1,345—was up 14.1 percent.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA