Is the rail freight traffic slump over? It would appear so, as total combined U.S. traffic for the first 17 weeks of 2017 of nearly nine million carloads and intermodal units was an increase of 3.9% compared to last year, and half of all Association of American Railroads-tracked carload commodities registered gains in April, grain and coal significantly.
“U.S. grain car loadings during April 2017 were the highest since 2011, with rail grain deliveries to ports since the first of the year running 19% ahead of 2016,” said AAR Senior Vice President of Policy and Economics John T. Gray. “These agricultural exports improve our balance of trade and strengthen the farm economy.”
However, sales of motor vehicles fell for the second straight month in April “as financing companies have reportedly hit the brakes, tightening lending standards following the satisfaction of the pent-up demand coming out of the 2009 recession,” Gray noted. “As a result, rail shipments of motor vehicles and parts fell again in April. We are hopeful that the upcoming summer buying season will clear dealer inventories and drive up demand for railroads to deliver new vehicles.”
U.S. railroads originated 1,023,300 carloads in April 2017, up 8.4%, or 78,949 carloads, over April 2016. U.S. railroads also originated 1,052,001 containers and trailers in April 2017, up 2.3%, or 23,448 units, from the same month last year. Combined U.S. carload and intermodal originations in April 2017 were 2,075,301, up 5.2% or 102,397 carloads and intermodal units over April 2016.
In April 2017, 10 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with April 2016. These included: coal, up 26.7% or 65,158 carloads; grain, up 18.7% or 14,612 carloads; and crushed stone, sand and gravel, up 12.9% or 11,777 carloads. Commodities that saw declines in April 2017 from April 2016 included petroleum and petroleum products, down 13.1% or 5,929 carloads; motor vehicles and parts, down 9.1% or 6,777 carloads; and metallic ores, down 8.4% or 2,083 carloads.
Excluding coal, carloads were up 2%, or 13,791 carloads, in April 2017, compared to April 2016. Total U.S. carload traffic for the first four months of 2017 was 4,347,402 carloads, up 6.4%, or 259,614 carloads, from the same period last year; and 4,439,681 intermodal units, up 1.6%, or 71,425 containers and trailers, from last year.
Total combined U.S. traffic for the first 17 weeks of 2017 was 8,787,083 carloads and intermodal units, an increase of 3.9% compared to last year.
For the week ending April 29, 2017, total U.S. rail traffic was 527,830 carloads and intermodal units, up 5.1% compared with the same week last year. Total carloads for the week were 258,476 carloads, up 6% compared with the same week in 2016, while U.S. weekly intermodal volume was 269,354 containers and trailers, up 4.2% compared to 2016.
Four of the 10 carload commodity groups posted an increase compared with the same week in 2016. They included grain, up 18.3% to 23,784 carloads; coal, up 17.7% to 75,662 carloads; and nonmetallic minerals, up 15.2% to 40,660 carloads. Commodity groups that posted decreases compared with the same week in 2016 included petroleum and petroleum products, down 12.9% to 9,624 carloads; motor vehicles and parts, down 12.1% to 16,677 carloads; and farm products excl. grain, and food, down 3.9% to 15,603 carloads.
North American rail volume for the week ending April 29, 2017, on 13 reporting U.S., Canadian and Mexican railroads, totaled 358,834 carloads, up 8% compared with the same week last year, and 346,706 intermodal units, up 4.7% compared with last year. Total combined weekly rail traffic in North America was 705,540 carloads and intermodal units, up 6.4%. North American rail volume for the first 17 weeks of 2017 was 11,637,645 carloads and intermodal units, up 4.9% compared with 2016.
Canadian railroads reported 83,214 carloads for the week, up 16%, and 66,264 intermodal units, up 9.8% compared with the same week in 2016. For the first 17 weeks of 2017, Canadian railroads reported cumulative rail traffic volume of 2,403,552 carloads, containers and trailers, up 9.8%.
Mexican railroads reported 17,144 carloads for the week, up 3% compared with the same week last year, and 11,088 intermodal units, down 9.4%. Cumulative volume on Mexican railroads for the first 17 weeks of 2017 was 447,010 carloads and intermodal containers and trailers, down 1.5% from the same point last year.