IANA: 3Q23 Shows ‘Signs of a Turnaround’

Following third-quarter Class I railroad earnings reports, IANA (Intermodal Association of North America) gave its figures, and they closely follow what the AAR (Association of American Railroads) has been reporting for at least the past year: Intermodal traffic overall remains depressed. However, domestic containers experienced a mild rebound.

Total intermodal volumes fell 7.1% year-over-year in 2023’s third quarter. While domestic container originations grew 1.6%, loadings of international containers contracted 13.2%, and trailers continued to fall, this time 23.3%. All but two of the seven highest-density trade corridors, which collectively handled more than 60% of total volume, were down in the third quarter. The Intra-Southeast corridor was up 5.6%, while the Midwest-Northwest climbed 3.5%. The Trans-Canada dropped the most, 16.6%. The Midwest-Southwest declined 9.4%; the South Central-Southwest, 9.0%; and the Southeast-Southwest, 7.0%. The Northeast-Midwest held its losses to 1.3%. Total IMC volume fell 28.7% year-over-year in Q3, with intermodal down 12.1% and highway traffic down 36.7%. Total IMC (intermodal marketing company) volume fell 28.7% year-over-year in Q3, with intermodal down 12.1% and highway traffic down 36.7%.

“The picture improved for domestic containers, but slower demand for goods, still-high inventories and a competitive freight environment continued to check intermodal volumes in the third quarter,” said Joni Casey, President and CEO of IANA. “We are starting to see signs though, for a turnaround next year.”