Intermodal Freight Hits Record High in 2012, Powered by Domestic Containers, IANA Says

By Rip Watson, Senior Reporter

This story appears in the Feb. 18 print edition of Transport Topics.

Intermodal freight in North America set an all-time record of 14.6 million shipments in 2012, powered by continued growth in domestic container shipments during the fourth quarter, the Intermodal Association of North America announced.

The results topped the previous record of 14.2 million set in 2006.

For the year, IANA reported international container shipments rose 1.7% to 7.58 million, and domestic intermodal shipments rose 6.5% to 7.05 million.



The domestic intermodal total reflected a 12% rise in shipments moved in containers but a 10% drop in trailer shipments as customers continued to shift freight from that equipment to containers.

IANA鈥檚 report, issued Feb. 7, includes intermodal freight carried by Canadian National Railway and Canadian Pacific Railway, which together increased about 7%. U.S. railroads for truck-rail moves in the country, the Association of American Railroads reported last month.

Another record year is expected in 2013, according to IANA.

鈥2013 is going to reprise 2012 for most of the freight categories,鈥 Joni Casey, president of IANA, told Transport Topics on Feb. 8. 鈥淲e are looking at domestic containers that could be up as much as 10%.鈥

Domestic truck-rail freight gained 4.9% in the fourth quarter to 1.82 million loads. Continuing the pattern seen throughout the rest of the year, domestic container shipments rose in the fourth quarter, while trailer shipments continued to sag.

鈥淭here is no reason to think that trend is going to end,鈥 she said. 鈥淎ll of the same factors are at play 鈥 the service capacity of intermodal, the increasing investments by the railroads in intermodal and the constraints in the trucking industry, such as drivers and fuel.鈥

None of those factors look like they are going to change in the next six or eight months, she added. 鈥淥ne of the issues to watch later this year is hours of service.鈥

Intermodal also could gain, Casey said, if the hours-of-service rule changes planned by the Federal Motor Carrier Safety Administration take effect this summer, resulting in reduced capacity for trucking fleets. American Trucking Associations in those while its court challenge continues.

She also cited another potential positive for intermodal 鈥 diesel prices have risen sharply in recent weeks. 鈥淎ny time there is a 15% or 20% increase in fuel, it鈥檚 followed by an increase in intermodal loadings,鈥 Casey said.

On the international side, Casey expects container loads to increase between 2% and 4% over 2012 levels. She said IANA was 鈥渕arginally surprised鈥 by fourth-quarter results in international container freight, saying a 鈥渕ore significant pullback鈥 was expected in the period.

International loads fell 0.7% to 1.86 million in the quarter. Because of labor disruptions, the group鈥檚 report didn鈥檛 tie the drop directly to Superstorm Sandy and uncertainty about international cargo. 鈥淚t would be easy to dismiss international鈥檚 performance as symptomatic of a couple of extraordinary events,鈥 the report said. 鈥淭hese factors seem to have had a relatively small effect.鈥

The report noted that East Coast intermodal freight grew in October and November despite Sandy. However, December international volume fell 10%, and was at the lowest level since 2009, the report said.