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Rail traffic: Intermodal gain offsets carload decline

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Written by: William C. Vantuono, Editor-in-Chief

In reporting weekly U.S. rail traffic, as well as volumes for April 2015 and the first four months of 2015, the Association of American Railroads took note of how growth in intermodal traffic offsetting declines in several types of carload traffic. The net result is traffic that is relatively flat.

“The federal government recently announced that its initial estimate of first quarter GDP growth was just 0.2%. Based on rail traffic in April, we aren’t seeing a surge in economic activity to start the second quarter,” said AAR Senior Vice President John T. Gray. “Railroad coal traffic is suffering from reduced electricity generation from coal and lower coal exports, while rail volumes for a number of other commodities are down due to general economic weakness. We hope that turns around. Intermodal, on the other hand, is doing very well, as large intermodal-related investments and service improvements are paying off with record volumes.”

Carload traffic in April 2015 totaled 1,403,044 carloads, down 5.3% or 78,712 carloads from April 2014. U.S. railroads also originated 1,383,314 containers and trailers in April 2015, up 5.1% or 67,153 units from the same month last year. For April 2015, combined U.S. carload and intermodal originations were 2,786,358, down 0.4% or 11,559 carloads and intermodal units from April 2014.

In April 2015, just five of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with April 2014. This included metallic ores, up 43.3% or 9,838 carloads; grain mill products, up 2.3% or 1,124 carloads; and motor vehicles and parts, up 0.8% or 733 carloads. Commodities that saw declines in April 2015 from April 2014 included coal, down 11.1% or 63,306 carloads; primary metal products, down 16.9% or 9,256 carloads; and grain, down 3.7% or 3,910 carloads.

Excluding coal, carloads were down 1.7% or 15,406 carloads in April 2015 from April 2014 and when both coal and grain are excluded, U.S. carloads were down 1.4% or 11,496 carloads last month.

Total U.S. carload traffic for the first four months of 2015 was 4,770,126 carloads, down 1.4% or 68,367 carloads, while intermodal containers and trailers were 4,401,912 units, up 1.6% or 69,588 containers and trailers when compared to the same period in 2014. For the first four months of 2015, total rail traffic volume in the United States was 9,172,038 carloads and intermodal units, up 0.01% or 1,221 carloads and intermodal units from the same point last year.

U.S. week ending May 2, 2015

Total U.S. weekly rail traffic for the week ending May 2, 2015 was 565,787 carloads and intermodal units, up 0.2% compared with the same week last year. For the week there were 283,091 carloads, down 4.8% compared with the same week in 2014, while U.S. weekly intermodal volume was 282,696 containers and trailers, up 5.7 % compared to 2014.

Six of the 10 carload commodity groups posted increases compared with the same week in 2014. They were: miscellaneous carloads, up 7.9% to 9,055 carloads; farm products and food, up 2.6% to 17,060; and chemicals, up 2.1% to 32,011. Commodity groups that saw decreases during this one week included: grain, down 12.6% to 18,437 carloads; coal, down 9.6% to 101,495 carloads; and nonmetallic minerals, down 6.6% to 35,312 carloads.

North American weekly results

North American rail volume for the week ending May 2, 2015 on 13 reporting U.S., Canadian and Mexican railroads totaled 378,592 carloads, down 5% compared with the same week last year, and 355,835 intermodal units, up 5.1% compared with last year. Total combined weekly rail traffic in North America was 734,427 carloads and intermodal units, down 0.4%. North American rail volume for the first 17 weeks of 2015 was 11,961,834 carloads and intermodal units, up 1.2% compared with 2014.

Canadian railroads reported 80,262 carloads for the week, down 6%, and 63,460 intermodal units, up 2.8% compared with the same week in 2014. For the first 17 weeks of 2015, Canadian railroads reported cumulative rail traffic volume of 2,341,497 carloads and intermodal containers and trailers, up 6%.

Mexican railroads reported 15,239 carloads for the week, down 4.4% compared with the same week last year, and 9,679 intermodal units, up 3%. Cumulative volume on Mexican railroads for the first 17 weeks of 2015 was 448,299 carloads and intermodal containers and trailers, up 3.2% from the same point last year.


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