According to a May 12 report from the Calverton-based Intermodal Association of North America, overall intermodal traffic suffered a 16.3% drop in Q1 compared to the same period in 2008. The single glimmer of hope was provided by the domestic container category, which actually saw volumes rise 0.1% for the quarter, with the biggest contribution coming from the 53-foot container subcategory, which experienced a 4.6% jump from last year's total.

Unfortunately, the losses in other categories more than offset domestic container gains. International container volume was particularly hard hit, falling 22.7%. While every IANA region recorded declines, the drop in the the Northwest region was by far the worst at 32.9%. Western Canada saw the smallest decline in international container volume at 11.2%.

But despite the sector's dismal Q1 showing, long-term prospects appear bright as many freight, transport and industrial real estate professionals believe the strategic combination of long-distance rail and shorter-distance trucking hold the key to more efficient delivery of goods to end users. In remarks to a National Retail Federation conference in Washington, DC, Transportation Secretary Ray LaHood indicated intermodal projects at US ports should qualify for $1.5 billion in federal funding under a grant program in the Recovery Act.