Intermodal is on the rise
U.S. intermodal traffic set a record for average weekly volume in August, according to the Association of American Railroads.
Traffic totaled 1,031,179 containers and trailers, up 4.4% from August 2012. The weekly average of 257,795 units was the highest for any month on record. The previous record of 252,347 units was set in July.
Intermodal transportation reached an all-time high last year: Intermodal container volumes ended 2012 with 13.1 million moves, surpassing the previous year by 5.9 percent and the previous benchmark year of 2007 by 9.8 percent, according to the Intermodal Association of North America’s Intermodal Market Trends & Statistics report.
According to a recent report by Colliers International, this growth is being fueled by a combination of:
1) Retailers remaking their supply chains by relocating primary distribution and logistics centers to Tennessee, Indiana, Georgia, Florida, South Carolina, Texas, Arizona, Michigan and right-to-work states
2) Expansion of manufacturing activity, from autos and appliances to electronics and medical devices
3) The volatility in diesel costs and new work rules are making trucking transportation more expensive compared to rail
The report asserts that shippers, manufacturers and retailers can no longer think of modes of transportation in isolation. Rail, road, air and water are all interconnected and integral parts of the global supply chain.
According to Colliers Q4 2012 North American Industrial Outlook, the presence of intermodal rail operations is the common denominator in the most active industrial markets and intermodal capacity differentiates top-tier inland distribution MSAs (Atlanta, Memphis, Louisville, Columbus, Indianapolis, Dallas, Kansas City and Denver) from ancillary MSAs (Orlando, Birmingham, Charlotte, Las Vegas and California’s Central Valley).
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