In reporting rail traffic for January 2016, Association of American Railroads (AAR) Senior Vice President John T. Gray said, “"Intermodal was solid in January, but carload volumes weren't what railroads were hoping for. By all accounts, rail service right now is excellent, but volume just isn't there.”
Total carload traffic in January 2016 totaled 968,042 carloads, down 16.6% or 192,747 from January 2015. U.S. railroads also originated 1,039,621 containers and trailers in January 2016, up 3.4% or 34,523 units from the same month last year. For January 2016, combined U.S. carload and intermodal originations were 2,007,663 down 7.3% or 158,224 carloads and intermodal units from January 2015.
In January 2016, four of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with January 2015. This included: miscellaneous carloads, up 45.2% or 7,409 carloads; chemicals, up 2.1% or 2,615 carloads; and motor vehicles and parts, up 3.9%or 2,435 carloads. Commodities that saw declines in January 2016 from January 2015 included: coal, down 33.3% or 150,658 carloads; petroleum and petroleum products, down 19.4% or 12,037 carloads; and crushed stone, gravel, and sand, down 10.3% or 8,475 carloads.
Excluding coal, carloads were down 5.9% or 42,089 carloads from January 2015.
“At some point, the problems currently plaguing the energy and manufacturing sectors—low oil prices, a strong dollar, uncertainties in emerging markets—will sort themselves out. When that happens, railroads will be positioned to provide safe, reliable service,” added Gray.
Total U.S. weekly rail traffic for the week ending Jan. 30, 2016 was 512,746 carloads and intermodal units, down 6.5% compared with the same week last year. For the week, there were 248,961 carloads, down 16.6% compared with the same week in 2015, while U.S. weekly intermodal volume was 263,785 containers and trailers, up 5.5% compared to 2015.
Three of the 10 carload commodity groups posted an increase compared with the same week in 2015. They were miscellaneous carloads, up 45.9% to 10,019 carloads; motor vehicles and parts, up 5.8% to 18,556 carloads; and chemicals, up 2.8% to 31,981 carloads. Commodity groups that posted decreases compared with the same week in 2015 included coal, down 33.8% to 77,416 carloads; petroleum and petroleum products, down 24.9% to 11,626 carloads; and metallic ores and metals, down 19.1% to 19,826 carloads.
North American rail volume for the week ending Jan. 30, 2016, on 13 reporting U.S., Canadian and Mexican railroads totaled 335,717 carloads, down 15% compared with the same week last year, and 336,908 intermodal units, up 4.3% compared with last year. Total combined weekly rail traffic in North America was 672,625 carloads and intermodal units, down 6.3%. North American rail volume for the first four weeks of 2016 was 2,630,780 carloads and intermodal units, down 6.8% compared with 2015. Canadian railroads reported 69,901 carloads for the week, down 12.4%, and 61,982 intermodal units, up 0.8% compared with the same week in 2015. For the first four weeks of 2016, Canadian railroads reported cumulative rail traffic volume of 513,716 carloads, containers and trailers, down 6.5%. Mexican railroads reported 16,855 carloads for the week, up 0.7% compared with the same week last year, and 11,141 intermodal units, down 3.2%. Cumulative volume on Mexican railroads for the first four weeks of 2016 was 109,401 carloads and intermodal containers and trailers, up 1.3% from the same point last year.