Intermodal Gaining Market

Aug. 19, 2009
Domestic rail intermodal has gained market share against truckload motor carriage, says FTR Associations analysis

Rail intermodal's share of US long-haul (550+ mile) movements of international and domestic containerized freight edged up by 0.1% to a level of 12.4% from the first to the second quarter, reports FTR Associates.

When movements of international containers are excluded, the market share represented by intermodal movement of domestic equipment (domestic containers and trailers) increased by a solid 0.3% to a level of 6.5%, FTR continues.

"The performance of the domestic intermodal sector is extremely impressive given the current economic conditions" said Lawrence Gross, senior consultant for FTR and principal author of the Intermodal Monthly Update. "Although the level of domestic intermodal traffic has declined, the decline has been less severe than the truck's, resulting in increased share. Domestic share has been increasing quite steadily since the third quarter of 2007."

Gross continued,"This analysis provides evidence that domestic intermodal's value proposition continues to resonate with shippers. With intermodal speeds and reliability hitting all-time levels, shippers have more incentive than ever to take advantage of the superior economics that intermodal offers in many instances."

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