TAKEAWAYS Shaping the Future of the Global Supply Chain
While intermodal rail has had somewhat of a rocky year, it appears to be ending strong. Total intermodal volume rose 9.8% year-over-year in the third quarter of 2024 ( see chart below ). International containers added 15.4% and domestic containers improved 6%, according to the Intermodal Association of North America (IANA). Trailers fell 11% during the same time period. “International volume continued to be the growth engine in the third quarter,” says Joni Casey, president and CEO of IANA. “We expect this strength to drive overall traffic through the end of the year.” The seven highest-density trade corridors, which collectively handled more than 60% of total volume, posted the following gains: 1. Southeast-Southwest: 25.9% 2. South Central-Southwest: 23.8% INTERMODAL RAIL REBOUNDS
HIGH COSTS DRIVING HO-HO-HUM HOLIDAY SEASON? Both retailers and consumers seem to have the same “item” at the top of their holiday wish lists this year: reduced inflation. Worries over the high cost of gifts —and the need to respond with corresponding business strategies that can help cut operating costs— have both groups concerned, shows data from Manhattan Associates’ latest Supply Chain Confidence Survey . The survey polled U.S. consumers and retail and supply chain/logistics executives, digging into insights on inflation, shortened holiday timelines, and political uncertainty. Consumers show clear opinions; 85% express concern over rising prices this holiday season and 64% indicate plans to cut spending on non-essentials , while 52% will prioritize discounts. In response, nearly 61% of supply chain leaders report having invested in new technologies and processes to run more efficiently and reduce overall costs this season. Retailers and supply chain executives also mention these strategies as part of their holiday 2024 game plans: • 70% plan to offer more promotions, with 56% using loyalty programs and 34% introducing flexible payment options. HIGH
3. Midwest-Northwest: 23.2% 4. Midwest-Southwest: 17% 5. Trans-Canada: 7.4% 6. Intra-Southeast: 2.7% 7. Northeast-Midwest: 0.4%
Intermodal Volume: Q3 2024 vs. Q3 2023
Units
9.8%
5,000,000
•
80% will utilize AI for better inventory management and customer service. 35% expect to implement automation technologies to control costs and handle peak demand.
4,000,000
•
3,000,000
6.0%
4.7%
15.4%
• 58% will increase their workforce to manage peak omnichannel demand. Agility also emerged as an important theme for peak-season prep. “Deploying the right technology is more critical than ever before,” notes Manhattan Associates’ Ann Sung Ruckstuhl. “Retailers’ focus on unified commerce and improved supply chain visibility is expected to help meet consumer demands for a smooth holiday shopping experience.”
-11.0%
2,000,000
1,000,000
0
Trailers
Domestic Containers
All Domestic Equipment
ISO Containers
Total
2023
2024
Source: IANA
16 Inbound Logistics • November 2024
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