Intermodal Activity up 5.9% for North America: Another Sign That LTL Rates Are Set To Skyrocket Soon

According to the American Association of Railroads, the intermodal volume increased 5.9% year-to-date for all of North America to 10.3 million trailers and containers through the week of August 9th. The Georgia Ports Authority reported that the container volume at the Port of Savannah reached a record level in July. "Container trade increased to 293,889 20-foot equivalent units at the port, surpassing the record set in May by almost 3,500 units." The Georgia Ports Authority stated that this was a 19.2% increase year-over-year. 

The GPA Executive Director said in a statement: “Improved confidence among U.S. retailers, newly added port customers and shifting cargo from U.S. West to East Coast are all fueling the growing cargo volumes at Georgia’s deep water ports.” Per the Intermodal Association of North America in a report last week, the Southeast came in with a 12.9% growth rate, but with just a little over 200,000 shipments it had the lowest total of overall shipments. 

The increased cargo activity is another tell tale sign that the LTL sector is poised to experience significant rate increases in the near future. LTL carrier GRI's this year may very well break records and come in higher than anyone is predicting. Maersk Line has already announced plans to raise the tariff on U.S. inland imports and exports effective September 1, 2014 because of "operational stress.” Maersk said in a notice to their customers that driver shortages and the elevated cargo levels are the cause of costly delays at the terminal and rail levels, and it is predicting that costs for the intermodal industry are going to continue to rise this year.

It's only a matter of time before the LTL carriers follow suit with significant GRI's.This year may be one for the record books. 

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