The North American intermodal market, once experiencing robust growth, has encountered significant headwinds in recent months. According to the latest Intermodal Quarterly Report from the Intermodal Association of North America (IANA), the sector recorded its first year-over-year decline in five years during the third quarter.
Key Metrics Reveal Market Contraction
The report shows third-quarter intermodal volumes fell 2.9% to 4,583,852 units compared to the same period last year. This decline was led by a dramatic 11.2% drop in trailer volumes (289,264 units) and a 5.7% decrease in domestic container shipments (1,982,977 units). Total domestic equipment, including both trailers and domestic containers, declined 6.5% to 2,272,241 units.
Bright Spot: International container movements bucked the trend with a 0.9% increase to 2,311,611 units, suggesting continued strength in global trade flows despite domestic challenges.
Year-to-Date Performance Shows Resilience
Despite the third-quarter setback, the broader picture remains positive. Cumulative volumes through the first nine months of 2021 reached 14,038,236 units, representing an 8.7% increase over 2020. International containers led this growth with a 13% year-over-year increase to 7,187,370 units.
IANA analysts attribute the quarterly decline to multiple factors including supply chain disruptions, equipment imbalances, and severe weather events. When compared to pre-pandemic 2018 levels, Q3 2021 volumes were down 5.3%, highlighting the market's ongoing recovery challenges.
Structural Shifts in Transportation Modes
The trailer segment's continued decline reflects broader industry trends, with current volumes at approximately half their 2000 peak. This structural shift coincides with growing preference for containerized solutions across the supply chain.
David Garofalo, IANA's Marketing and Communications Director, emphasized that current challenges stem from unprecedented freight volumes rather than equipment shortages. "The issue isn't lack of equipment, but rather having the right equipment in the right place at the right time," he noted.
Intermodal Marketing Companies Outperform
While overall volumes declined, intermodal marketing companies (IMCs) reported strong performance with a 10.6% increase in loads moved (1,200,486 units) and a 31.3% revenue increase to $3.16 billion. This suggests that specialized intermediaries are successfully navigating current market complexities.
Long-Term Outlook Remains Positive
Industry experts anticipate continued pressure through the holiday season as supply chains work through existing backlogs. However, the fundamental value proposition of intermodal—combining rail efficiency with truck flexibility—positions the sector for long-term growth as companies seek resilient, sustainable transportation solutions.
The current challenges are accelerating innovation across the industry, with increased focus on digital tools for equipment tracking, dynamic routing optimization, and collaborative planning between supply chain partners. These developments may ultimately strengthen the intermodal sector's competitive position in North America's transportation landscape.