Intermodal Growth Slows in Third Quarter
Truck/rail freight growth slowed to 3.4% in the third quarter, the Intermodal Association of North America reported, as domestic growth was stunted by truckers taking advantage of favorable fuel prices and capacity.
The domestic intermodal growth pace was 2.7% compared with the third quarter of 2014 and well below the 3.8% pace in the first half of 2015. International intermodal posted year-over-year growth of 4% in the third quarter, just above the 3.9% rise in the first half of 2015.
In total, the 3.4% improvement trailed the 4.5% year-over-year increase in the second quarter. Third-quarter shipments totaled 4.36 million, or 5,189 fewer than the second quarter.
“Soft manufacturing output, low fuel prices and more trucking capacity all weighed on that [domestic] sector,” IANA reported. “Domestic intermodal will continue to operate in a more competitive environment than that which has been generally in place over the last couple of years.”
At the same time, IANA retained optimism that long-term market trends will change with the onset of more federal regulations that will curb trucking capacity.
IANA’s report said the slower growth pace overall “was to be expected” since the intermodal freight levels were affected by West Coast port strife that skewed cargo shipments in both the first and second quarters.
Rail service and cargo trends also are influencing intermodal.
“Intermodal service is improving as the railroads work to regain [market] share from the highway,” the trade group’s report said. “Railroads are even more sharply focused on intermodal as other commodities, especially coal, pull rail carload volume lower.”
The Association of American Railroads statistics for the third quarter showed a 5.3% decline in nonintermodal freight. During the third quarter, truck/rail freight accounted for about 48% of all cargo moved by railroads.
