A Global Economy
Intermodalism: A Key Link in a Global Economy
A rather smallish story appeared in the Wall Street Journal recently, announcing a record U.S. trade deficit for May of 1999. The $21.34 billion deficit was the highest U.S. trade deficit since the Department of Commerce began keeping monthly trade statistics. A friend buys a new Volkswagen Jetta, and is immensely proud of her first “German” car, regardless of the fact it was assembled in Puebla, Mexico, by non-union labor with a goodly percentage of parts that certainly did not originate in Bavaria or Mexico.
Ten years ago such trade deficits would have generated dire editorials in the print media, trumpeting the end of the American middle class, and bemoaning the flight of American manufacturing jobs. Now, in our post-North American Free Trade Agreement (NAFTA) world, the benefits of relaxed international trade accrue to a more sophisticated North American middle class, one that is purchasing the goods of the world, and realizing the world is a much smaller place.
| IANA also acts to unify an industry in which the various segments are frequently competitors with each other in the multi-modal freight transport arenas. |
The intermodal freight transportation industry has become the delivery vehicle for the new economy, and has demonstrated a remarkable flexibility, quickly shifting resources to accommodate rapid change in the global marketplace. Intermodalism provides freight transport that incurs the least social costs in terms of fuel consumed and pollutants generated. Getting freight onto the rail system for a large portion of its journey and off of congested highways is a further advantage to intermodal practices. The transportation industry needs to focus on a comprehensive approach to infrastructure improvements that will enhance productivity and facilitate intermodal transportation options. Policy decisions and funding for such improvements require accurate industry information to justify such action and public investment.
A valuable service of any industry advocate is the assimilation and distribution of industry statistics and information. The recognized advocate of intermodal transportation is the Intermodal Association of North America (IANA). IANA collects data from and for its member companies and compiles this industry information into three quarterly reports: The Intermodal Marketing Company Market Activity Report, The Water Carrier/Stacktrain Operator Equipment Utilization & Traffic Report, and The Intermodal Rail Traffic Report. These detailed industry reports carry a telling array of information about trends in the intermodal freight transportation industry, which are often a leading indicator of U.S. global trading patterns. IMC Intermodal loads for the first quarter of 1999 were up 7.8 percent over the first quarter of 1998. Import container loads to West Coast ports are up from the first quarter of 1998, but empty containers headed to Asia indicate continued weakness in the Asian economies. The growth in the number of containers versus trailers indicates a shift in the technology and economics of containerized transport.
IANA also acts to unify an industry in which the various segments are frequently competitors with each other in the multi-modal freight transport arenas. The IANA Intermodal Conference and Membership Meeting, held annually, brings together leaders from the trucking, rail, water, IMC,and supplier segments to work on issues and topics that advance intermodalism and improve service to customers. In recognition of the increasing role that port authorities and marine terminal operators are playing in the intermodal freight transport industry, these organizations have been given a new voice in an expanded IANA Water Division. Significant capital investment and port expansion is going on from Oakland to Palm Beach to Halifax, designed to handled increased port traffic, particularly container loads. The railroads have also invested heavily to update “rolling stock” and build intermodal freight handling terminals. Capital investment on the part of these segments of the intermodal freight transportation industry signifies an industry-wide belief that ever increasing global trade will be a cornerstone of future growth.
Intermodal freight transport’s future growth depends ultimately not just upon increasing loads of imports and exports, but also on servicing the needs of the customer and the growth of the customer’s business. Forging alliances and understanding of the needs of shippers and logistics professionals will help intermodal transportation providers tailor options that meet the needs of both retailers and manufacturers. A new role for corporate logistics professionals within the industry, and greater emphasis on the needs of shippers will serve the industry, and it’s customers, well into the next century.