Intermodal freight volumes saw a significant turnaround in 2024, up 8.5%, according to a year-end report from the Intermodal Association of North America (IANA), rebounding from a 5.9% decline a year ago.
The growth signifies a revitalized economy and evolving international trade dynamics, the trade group said, and highlights the resilience and adaptability of the intermodal sector in the face of economic fluctuations and logistical challenges.
International container flows spur growth
A major driver was the 13.9% surge in international container movements, from a decline of 8.4% in 2023. This upswing is primarily attributed to a 13% increase in containerized imports into the United States, suggesting heightened demand for foreign goods and a potential shift in consumer preferences and supply chain strategies.
Domestic container shipments increased 5.4%, further bolstering overall intermodal volume in a robust domestic market.
Trailer originations show signs of recovery
While trailer originations continued to decline, the 16.1% drop in 2024 was less severe than the 23.7% and 23.8% plunges in 2023 and 2022, respectively. This indicates a potential stabilization in this segment, driven by increased efficiency in trucking operations, a shift toward containerized freight and changing consumer demand. Total tractor-trailer loadings showed a modest 0.8% gain from a year ago, tempered by a 3.4% decrease in short-haul volume, suggesting a possible shift toward long-haul and intermodal transportation.
The report also highlighted regional disparities in intermodal freight activity. Nine out of 10 regions experienced increased originations in 2024, with the Southwest leading on a 19.1% rise, followed by Mexico at 18.9%. This suggests a geographical shift in trade patterns and economic activity, on changes in manufacturing and distribution networks, infrastructure investments, and regional economic development.
Joni Casey, outgoing president and CEO of IANA, expressed optimism about the future, saying in a release, “The intermodal freight industry demonstrated resilience and adaptability in 2024, overcoming various challenges such as supply chain disruptions, labor shortages, and rising fuel costs. We anticipate continued growth in 2025, driven by sustained economic recovery, evolving consumer demands, and ongoing advancements in technology and infrastructure.”
The report cited several factors contributing to robust intermodal growth in 2024:
- Economic rebound: The overall economic recovery, fueled by increased consumer spending, business investment and government stimulus, played a pivotal role in boosting freight demand across various sectors.
- E-commerce boom: The continued expansion of e-commerce, accelerated by the pandemic and changing consumer habits, showed the need for efficient, flexible and cost-effective transportation solutions provided by intermodal services.
- Supply chain disruptions: Ongoing disruptions, including port congestion, container shortages and geopolitical tensions, prompted shippers to seek alternative transportation modes and diversify their supply chains, further driving intermodal adoption.
- Environmental concerns: Corporate sustainability initiatives helped incentivize the shift toward intermodal freight, with lower carbon emissions and reduced environmental impact compared to trucking.
- Technological advancements: Digital platforms for tracking and tracing shipments, automation in intermodal terminals, and data analytics for optimizing operations enhanced the efficiency, visibility and reliability of intermodal freight, making it a more attractive option for shippers.
Challenges and opportunities
Despite the positive outlook, intermodal faces ongoing challenges:
- Driver shortage: IANA said a persistent shortage of truck drivers, particularly for drayage operations, poses a challenge for intermodal efficiency and could lead to increased costs and delays.
- Infrastructure investment: The need for continued investment in infrastructure, including rail networks, intermodal terminals and port facilities, remains crucial to support future growth and accommodate increasing volumes.
- Technological advancements: While technology presents opportunities, it also poses challenges, as the industry needs to keep pace with rapid developments and invest in digital transformation to remain competitive.
Find more articles by Stuart Chirls here.
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