Intermodal Shipments Post Fourth-Quarter Gain, Down Last Year
Intermodal freight volumes returned to growth in the fourth quarter of 2016, posting a 1% year-over-year increase that tempered volume declines earlier the year, according to the Intermodal Association of North America.
Intermodal freight volumes returned to growth in the fourth quarter of 2016, posting a 1% year-over-year increase that tempered volume declines earlier the year, according to the Intermodal Association of North America.
The fourth-quarter improvement, which totaled 4.35 million shipments for the three months, was achieved despite lower overall freight volume and resulted in lower intermodal volume during the second and third quarters.
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Shipment declines during those quarters led to a drop of 2.1% in total intermodal volumes for the year compared with 2015. The total of 17.1 million shipments was the first full-year decline since 2008.
"While full-year totals didn't meet our original expectations, we turned the corner in November and December," said Joni Casey, president and CEO of IANA. "The 4% increase in domestic container volume during 2016 is a consistent and positive indicator of long term growth for the industry."
Domestic container gains were 3.4% in the fourth quarter and international shipments returned to growth for the period, increasing 0.6%. Declines continued in the trailer segment, which fell 9.2%.
The seven highest-density trade corridors, accounting for 63.3% of total intermodal volume, collectively were up 1.8% in the quarter, above the industry average of 1%.
The Midwest-Northwest and Northeast-Midwest lanes saw the largest fourth-quarter increases at 4.3% and 4.2%, respectively. Midwest-Southwest volumes, which were the highest, grew 1.4%. The South Central-Southwest lane, the only major lane to post a decline, fell 4.4% on container losses.
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Intermodal service providers again demonstrated clear gains in the highway market sector. Thanks to excess trucking capacity and low fuel prices, highway volumes were up 37.3% from the same quarter the previous year. Intermodal loads fell 11.2%. The net result for reporting intermodal service was a total volume increase of 10%.
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