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Rail News Home Rail Industry Trends

2/8/2010



Rail News: Rail Industry Trends

FTR: Intermodal reaches market share high in 4Q; heavy truck orders fall to seven-year low in January


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In the fourth quarter, intermodal not only gained market share from trucks, but set a quarterly record in the process, according to transportation forecasting firm FTR Associates. Intermodal’s share of U.S. domestic and international long-haul moves (550 or more miles) totaled 13.3 percent, up 0.2 percent compared with the third quarter’s share and slightly above the previous high-water mark set in fourth-quarter 2008.

“Intermodal has gained share for three consecutive quarters since the freight meltdown late last year,” said Lawrence Gross, FTR’s senior consultant, in a prepared statement. “This latest increase has been driven by improvement in the international intermodal sector, an indication that imports and exports are rebounding faster than domestic traffic. The market share of the domestic intermodal sector, which had been growing earlier in the year, was flat in the fourth quarter.”

If railroads maintain their current “high levels of service,” intermodal’s domestic market share will resume growing “even as the international sector continues to rebound,” he said.

Meanwhile, FTR also reported that heavy truck (Class 8) orders for all major North American OEMs totaled about 6,221 units in January — the lowest monthly level since July 2002. Order activity plunged 46.4 percent from December’s level and 20.1 percent from January 2009’s count.

“The very low order activity was not unexpected. When fleets took advantage of open build slots in late 2009, we knew this activity would take away from planned orders in the new year,” said FTR President Eric Starks. “We continue to expect a soft first half, but believe some demand will slowly return late in the year.”