In October, U.S. rail freight and intermodal volumes both increased, with notable performance in petroleum and grain. Coal experienced a decline. Year-to-date carload traffic saw a slight decrease, while intermodal volume showed significant growth.
The Intermodal Association of North America (IANA) reported a first decline in North American intermodal volumes in five years during Q3, impacted by supply chain disruptions and weather events. While the year-to-date volume for the first nine months still shows growth, challenges and opportunities persist. Collaborative efforts are needed to strengthen infrastructure, optimize networks, increase labor availability, improve equipment utilization, and promote digitalization. These actions are crucial for reshaping supply chain resilience in the face of ongoing uncertainties and fostering future growth in the intermodal sector.
The Intermodal Association of North America (IANA) reports a 4.5% year-over-year increase in North American intermodal volume in Q1, with domestic container shipments leading the growth. Lower fuel costs, improved service, and railway investments are key drivers. Experts note that transloading and base effects also contribute. International container growth exceeded expectations, while trailer volume decline narrowed. Intermodal marketing companies saw revenue growth despite lower loadings. The outlook for the intermodal market is positive, suggesting opportunities for businesses to capitalize on the momentum.
The Association of American Railroads (AAR) reported a mixed performance in U.S. rail freight for the week ending March 21. Traditional carload traffic saw a slight year-over-year decrease, but grain and automotive shipments performed strongly. Intermodal volume, however, bucked the trend and increased. Year-to-date figures show a small increase in carload volume, while intermodal volume experienced a slight decline. The U.S. rail freight market is undergoing a transformation and upgrade, requiring proactive responses to challenges and the seizing of opportunities.
According to the Association of American Railroads, U.S. rail carloads increased by 3.3% year-over-year in late January, driven primarily by nonmetallic minerals and coal. However, intermodal traffic decreased by 6.7% year-over-year, suggesting weaker consumer demand. Year-to-date, carloads have increased by 3%, while intermodal traffic has declined by 8.4%. Overall North American rail traffic has slightly decreased, reflecting a complex economic outlook. The contrasting trends in carload and intermodal volumes highlight the mixed signals within the current economic landscape.
Faced with service issues and declining performance, rail and intermodal providers are maintaining record investment levels to address current challenges and strive to return to pre-recession performance. However, experts point out that simply increasing investment may not fundamentally solve the problems. What's more important is how to effectively translate capital into tangible operational improvements. The key lies in optimizing processes, embracing technology, and fostering collaboration across the supply chain to maximize the return on investment and achieve sustainable operational efficiency.
US rail freight traffic saw a slight increase in the first week of October, with intermodal transportation experiencing significant growth. Nonmetallic minerals and other commodities drove the increase, while coal and other commodities declined. Year-to-date cumulative freight volume shows growth. Market risks warrant attention.
The North American multimodal transportation market faces challenges from international trade uncertainties and long-term growth deceleration. International freight volumes are declining due to tariffs, while domestic freight shows slight growth. Domestic multimodal transportation is considered key to future growth, requiring optimized routes and increased long-haul market share. Paying attention to global shipping and truck supply factors may present opportunities to capture market share. Despite international headwinds, focusing on domestic strengths could lead to positive outcomes.
The North American multimodal transportation market is bifurcated, with international volumes declining and domestic volumes steadily increasing. Domestic transportation may become a future growth engine, requiring attention to factors such as global shipping routes, trucking capacity, and driver availability. The overall volume forecast for 2026 is flat to slightly down. The shift towards domestic transport highlights the need for optimization within North American supply chains and leveraging multimodal solutions to enhance efficiency and resilience.
Data from the Intermodal Association of North America shows a strong start to Q4 for intermodal transportation, driven by a surge in West Coast imports and robust consumer spending. International Standard Containers (ISO) experienced significant growth, while trailer volumes continued to decline. International volumes are expected to remain strong through the end of the year. Labor agreements and the Asian Lunar New Year are anticipated to impact Q1 freight volumes.
