Q2 intermodal volumes see solid gains, reports IANA

Intermodal volumes for both the second quarter and first half of 2021 showed solid gains, according to the most recent edition of the Intermodal Quarterly report issued by the Intermodal Association of North America (IANA).

For the second quarter, IANA reported that total intermodal volume came in at 4,838,122 units, marking a 20.4% annual increase. Trailers—at 307,866—headed up 18.5% annually, and domestic containers—at 2,017,223—rose 15.7%, with all domestic equipment—at 2,325,033—seeing a 24.8% annual increase. International, or ISO, containers—at 2,513,033—were up 24.8% annually.

On a year-to-date basis, for the first six months of 2021, total shipments—at 9,454,384—are up 15.4%. Domestic containers—at 3,961,485—are up 9.9%, with trailers—at 617,140—up 19.8%. All domestic equipment—at 4,578,625—saw an 11.1% gain, and ISO containers—at 4,875,759—are up 19.7%.

The report observed that the second quarter marked the fourth consecutive quarter of volume gains, with the second quarter marking the largest quarterly gain going back to the third quarter of 2010, as well as the sixth quarter with a double-digit growth rate.

What’s more, IANA explained that on a seasonally-adjusted basis, total second quarter intermodal volume was up 1.7% compared to the first quarter which it said was expected, with inclement winter weather and service shutdowns negatively impacted first quarter volumes.

On the ISO side, the report observed that the second quarter is the second consecutive quarter with double-digit gains and also the third with positive improvements, which was driven by weak annual comparisons and elevated U.S.-bound imports.

Looking ahead, 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%.

IANA President and CEO Joni Casey told LM than on a year-to-date basis volumes are still strong, especially when taking into account that intermodal activity really started to accelerate in June 2020.

“The annual comparisons and growth numbers are still very strong,” she said. “Compared to June 2020, it shows a little bit of [slowing].”

When asked about some 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, Casey explained that 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.”