Cargo Statistics: Intermodal Trends, New York/New Jersey, St. Lawrence Seaway

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In a strong second quarter showing, intermodal posted gains across all segments, according to the Intermodal Association of North America’s (IANA) Intermodal Market Trends & Statistics report. Container volumes set a record at the Port of New York and New Jersey during the first six months of 2014. Through July of the navigation season that began March 28, more than 15 million metric tons of cargo moved through the St. Lawrence Seaway, down 4 percent from a year ago, according to data reported by Saint Lawrence Seaway Development Corporation (SLSDC).

Strong International Growth Contributed to Largest Quarterly Intermodal Growth Since 2011, IANA Data Show

In a strong second quarter showing, intermodal posted gains across all segments, according to the Intermodal Association of North America’s (IANA) Intermodal Market Trends & Statistics report. International containers increased 9.6 percent, trailers by 4.3 percent, and domestic containers by 7.6 percent quarter-over-quarter, all indications, says IANA, are that the intermodal industry is recovering from a harsh winter and a contracted economy. Due in large part to Q2’s strength, the first half of 2014 averaged 5.5 percent in total intermodal volume gains, just below the 5.8 percent growth recorded in the second half of 2013 and in line with recent trends.

"The second quarter results were indicative of a rebounding economy and higher than predicted import shipments," said Joni Casey, president and CEO of IANA. "It is also probable the harsh winter that resulted in constricted Q1 capacity contributed to the second quarter’s strong growth, by comparison."

The seven highest-density trade corridors, accounting for 66.2 percent of total intermodal volume, rose 7.4 percent this quarter, falling below the 8.2 percent industry average. Five of the seven bi-directional lanes recorded growth near or above industry averages. The Trans-Canada corridor, positively impacted by international intermodal shipments from Eastern Canada to Western Canada, led the way in corridor growth with a 10.5 percent quarter-over-quarter increase.

Eight of the nine IANA regions experienced growth in the second quarter, with six areas reporting increases larger than 10 percent. Of these six, all were heavily impacted by strong showings in international intermodal shipments. The Midwest and Southwest, the two largest IANA regions accounting for almost 50 percent of total loadings, climbed 6.3 percent and 7.8 percent, respectively.

Intermodal marketing companies (IMCs) posted Q2 growth rates that were more modest than the overall intermodal volume numbers, growing 2.4 percent from last year. According to IANA, IMCs, like much of the broader market, in part benefited from the robust showing from imports based on transloading opportunities. Average revenue for both intermodal and highway IMC market segments continued its strong growth, with increases of 6.0 percent and 16.3 percent respectively. A month-by-month IMC growth comparison indicates that April led the way with solid 4.2 percent gains, then slowed to 0.9 percent in May and 2 percent in June. In quarter-over-quarter comparisons, intermodal business accelerated 6.7 percent.

New York and New Jersey on Pace for Record Container Cargo Growth in 2014

Cargo container volumes set a record at the Port of New York and New Jersey during the first six months of 2014. In detail, the data, as reported by the port authority, show a first-half total of 2,727,554 TEUs, up 4.1 percent from a year ago and exceeding by 6,764 TEUs the previous first-half record, set in 2012. Inbound loads alone rose by 5.5 percent and empty containers by 12.4 percent from 2013 levels for the same six month period.

ExpressRail, the port authority's ship-to-rail system serving New York and New Jersey marine terminals, recorded a 5.1 percent increase in total lifts through the same period. More than 14 percent of the total port traffic is currently transported by rail. The agency has invested more than $600 million in ExpressRail (now funded by portwide cargo facility charges) to meet the need for on-dock rail to maintain the port's competitiveness, improve efficiency and reduce emissions.

"The problems we experienced last winter with moving cargo containers on and off the docks taught us a very important lesson – that all stakeholders must work together for the benefit of the entire port community," said Port Authority Port Commerce Director Richard Larrabee. "By working together, we are confident that we will see continued improvements in port productivity, which will enable us to more efficiently handle continued growth in cargo volumes."

To spur future long-term improvements, the agency formed a Port Performance Task Force in December to explore ways to improve efficiency and service reliability at the port. Last month, the Port Performance Task Force released its report (Advisory, July 1, 2014), which consists of 23 recommendations that if implemented will reduce truck congestion and air emissions in the Port of New York and New Jersey, improve customer service for truckers and other port stakeholders, and enhance the flow of goods from the port to the marketplace.

In response to the report, a new group of port stakeholders – the Council on Port Performance – was formed and immediately began the task of planning for the implementation of the recommendations.

St. Lawrence Seaway Cargo Nears 2013 Levels

Through July of the navigation season that began March 28, more than 15 million metric tons of cargo moved through the St. Lawrence Seaway, down 4 percent from a year ago, according to data reported by the Saint Lawrence Seaway Development Corporation (SLSDC).

"The month of July was extremely busy for our ports on the Great Lakes-Seaway System as they handled high value cargoes like steel, wind components, and machinery that arrived from 13 different countries," said Rebecca Spruill, SLSDC’s director of trade development.

The Port of Muskegon welcomed the HHL Elbe on July 7 carrying wind turbine blades from Brake, Germany and nacelles from Rostock, Germany. The components are part of the second phase of the Beebe Community Wind Project in Gratiot County (MI). The first phase was completed in December 2012.

"The Port of Muskegon has again been at the center of alternative energy efforts in Michigan. Having experienced port operators is key to re-establishing ourselves as the only deep-water port on the west side of the state," said Terry J. Sabo, Chairman of the Port Advisory Committee. Three more vessels are due to arrive in August with additional components for this project.

On July 17, the BBC cargo ship Peter Roenna arrived at the Port of Duluth carrying more than two dozen renewable wind energy components after a voyage from Brande, Denmark, where the equipment is manufactured by Siemens A.G. It was the 15th project shipment the port has handled since 2006 for Minnesota Power’s Bison Wind Energy Center development in North Dakota. The fourth phase of that project is underway.

At the Port of Indiana-Burns Harbor, total maritime tonnage handled through July of the current navigation season is nearly 25 percent ahead of last year’s volume with steel products leading the way. "Marine traffic into the port continues to be up at a steady pace with steel and steel-related byproducts continuing to drive strong shipments," said Port Director Rick Heimann. "We truly appreciate all the companies that have trusted us with their business which has allowed us to experience the volume growth midway through 2014."

From March 28 through July 31, the Seaway experienced tonnage drops from a year ago for iron ore (-37 percent) coal (-16 percent) and U.S. grain exports (-9 percent) and a 68 percent jump in general cargo. Within the general cargo category, the top performers were iron and steel ( 78 percent) and iron slabs ( 111 percent). Dry bulks were down 1 percent, despite gains by salt, cement, ores and fertilizers.