Intermodal Drives November Freight Traffic Rise

U.S. rail freight traffic was up 2.6 percent in November the Association of American Railroads reported this week.

U.S. Class I railroads handled 2,408,479 carloads and intermodal units during the month. The percentage comparison is with the same month in 2022.

Carload traffic was 1,128,573 carloads, a drop of 0.0 percent, or 102 carloads compared with November 2022.

Intermodal traffic was 1,279,906 containers and trailers, a gain of 5.0 percent, or 60,486 units compared with the same month last year.

AAR senior vice president John T. Gray said in a statement that the November intermodal gain was the third consecutive year-over-year gain after 18 straight declines and the biggest year-over-year percentage gain for intermodal in 29 months.

“Overall, the last week of November had the highest carload plus intermodal volumes in two years,” Gray said.

 “Much will depend on how the broader economy continues to evolve, but railroads are hopeful November will provide much-needed momentum for the rest of 2023 and into 2024,” he said.

During November, 12 of the 20 carload commodity categories tracked by the AAR posted gains compared with November 2022.

These included: chemicals, up 8,322 carloads or 5.7 percent; motor vehicles and parts, up 4,611 carloads or 6.6 percent; and petroleum and  petroleum products, up 4,510 carloads or 10.1 percent.

Seeing declines were crushed stone, sand and gravel, down 8,052 carloads or 8.0 percent; all other carloads, down 6,851 carloads or 25.6 percent; and grain, down 6,290 carloads or 5.4 percent.

Excluding coal, carloads were down 1,059 carloads, or 0.1 percent. Excluding coal and grain, carloads were up 5,231 carloads, or 0.8 percent.

Total U.S. carload traffic for the first 11 months of 2023 has been 10,824,994 carloads, up 0.2 percent, or 21,700 carloads, from the same period last year; and 11,684,971 intermodal units, down 6.0 percent, or 748,046 containers and trailers.

Total combined U.S. traffic for the first 48 weeks of 2023 has been 22,509,965 carloads and intermodal units, a decrease of 3.1 percent compared to last year.

Rail Freight Eked Out Slight Gain in October

Rail freight traffic saw a slight overall gain in October the Association of American Railroads reported this week.

U.S. Class I railroads hauled 1,997,322 carloads and intermodal units, which was up 1.0 percent, or 20,280 carloads and intermodal units when compared with October 2022.

October traffic included 921,591 carloads—down 0.3 percent, or 2,921 carloads—and 1,075,731 containers and trailers, up 2.2 percent, or 23,201 units compared with last year.

Nine of the 20 carload commodity categories tracked by the AAR posted carload gains compared with the prior-year period.

These included petroleum and petroleum products, up 5,046 carloads or 14.2 percent; chemicals, up 3,842 carloads or 3.2 percent; and motor vehicles and parts, up 3,154 carloads or 5.4 percent. Declining were coal, down 12,284 carloads or 4.5 percent; grain, down 4,373 carloads or 4.7 percent; and crushed stone, sand and gravel, down 795 carloads or 0.9 percent.

Excluding coal, carloads were up 9,363 carloads, or 1.4 percent. Excluding coal and grain, carloads were up 13,736 carloads or 2.5 percent.

Total combined U.S. traffic for the first 43 weeks of 2023 has been 20,101,486 carloads and intermodal units, dipping 3.8 percent from the same point in 2022.

That works out to 9,696,421 carloads, up 0.2 percent or 21,802 carloads and 10,405,065 intermodal units, down 7.2 percent or 808,532 containers and trailers.

AAR senior vice president John T. Gray said the gain in year-over-year carload and intermodal volumes is the most for any month since June 2021

“Part of that relates to intermodal seasonality and concerns over Panama Canal capacity, but part of it also reflects an economy that remains resilient as reflected by recent strong GDP data,” Gray said.

U.S. Freight Traffic Up 1.5% in September

U.S. rail freight carload traffic was up in September by 1.5 percent the Association of American Railroads reported.

Carriers originated 921,716 carloads, up 2.3 percent, or 20,754 carloads compared with September 2022.

They also originated 1,008,896 containers and trailers last month, up 0.7 percent, or 7,096 units, over September 2022.

The combined U.S. carload and intermodal originations were 1,930,612, up 1.5 percent, or 27,850 carloads and intermodal units compared with the same month last year.

“Rail traffic, although improving, remains in uncertain territory along with the economy,” said AAR Senior Vice President John T. Gray in a statement.

Gray said that although intermodal traffic had in September its best volume month of the year, a sustained boost across rail categories will require stronger overall industrial growth.

Gray said grain shipments improved slightly from low summer levels, while chemicals and petroleum products had reasonably solid months.

Intermodal traffic “is showing, after three years, that ’peak season’ still exists although much more reserved and occurring somewhat later than past peaks,” he noted.

During this past September, 13 of the 20 carload commodity categories tracked by AAR saw carload gains compared with the prior-year period.

These included motor vehicles and parts, rising 8,327 carloads or 15.2 percent; petroleum and petroleum products, up 5,547 carloads or 16.0 percent; and chemicals, up 5,530 carloads or 4.6 percent.

Posting declines were grain, down 6,651 carloads or 9.0 percent; coal, down 4,012 carloads or 1.4 percent and coke, down 1,062 carloads or 9.1 percent.

Freight Traffic Fell in April, AAR Says

U.S. Rail traffic during April continued to decline, the Association of American Railroads said this week.

Traffic for the month was down 6.0 percent or 120,898 carloads and intermodal units compared to the same month in 2022.

During April, U.S. Class I railroads hauled 1,881,950 carloads a gain of 936,637 carloads or 1.8 percent when compared with April 2022.

However, the 945,313 containers and trailers that the carriers handled during the month was a loss of 12.7 percent compared with the same month in 2022.

Seven of the 20 carload commodity categories tracked by the AAR each month posted gains compared with April 2022.

These included: coal, up 10,098 carloads or 4.1 percent; crushed stone, sand and gravel, up 7,901 carloads or 9.7 percent; and motor vehicles and parts, up 6,483 carloads or 12.3 percent.

Losing ground were chemicals, down 4,677 carloads or 3.4 percent; grain, down 3,294 carloads or 3.7 percent; and nonmetallic minerals, down 2,263 carloads or 14.9 percent.

Excluding coal, carloads were up 6,883 carloads, or 1.0 percent. Excluding coal and grain, carloads were up 10,177 carloads, or 1.7 percent.

Total U.S. carload traffic for the first four months of 2023 was 3,930,129 carloads, up 0.6 percent, or 23,161 carloads, from the same period last year; and 3,968,876 intermodal units, down 10.9 percent, or 484,228 containers and trailers, from last year.

Total combined U.S. traffic for the first 17 weeks of 2023 has been 7,899,005 carloads and intermodal units, a decrease of 5.5 percent compared to last year.

In a statement, AAR Senior Vice President John T. Gray said intermodal volume continues to lag due to significantly lower trade activity at ports, weaker consumer demand, and continued excess retail inventories from the pandemic era.

 “These headwinds won’t last forever,” Gray said. “When they dissipate, railroads will be prepared to meet their customers’ needs safely and reliably.”

Intermodal Has Worst January Since 2013

Intermodal traffic in January posted its worst performance since 2013 the Association of American Railroads reported.

AAR Senior Vice President John T. Gray attributed the decline to retailers cutting back on inventories in response to reduced consumer spending.

Total U.S. carload traffic was 923,696 carloads, up 2.2 percent, or 19,827 carloads compared with January 2022.

Intermodal volume was 919,928 intermodal units, down 8.1 percent, or 81,443 containers and trailers, from last year.

Total combined U.S. traffic for the first four weeks of 2023 was 1,843,624 carloads and intermodal units, a decrease of 3.2 percent compared to last year.

U.S. rail traffic for January was down 3.2 percent compared with January 2022.

Twelve of the 20 carload commodity categories tracked by the AAR posted gains compared with January 2022.

Gainers included crushed stone, sand and gravel, up 14,694 carloads or 22.6 percent; coal, up 11,953 carloads or 4.6 percent; and motor vehicles and parts, up 6,293 carloads or 13.4 percent.

Losing ground last month were chemicals, down 15,641 carloads or 11.4 percent; all other carloads, down 2,273 carloads or 10.3 percent; and lumber and wood products, down 1,939 carloads or 14.5 percent.

Excluding coal, carloads were up 7,874 carloads, or 1.2 percent, in January 2023 from January 2022.

Excluding coal and grain, carloads were up 5,518 carloads, or 1.0 percent.

“Rail traffic began 2023 much the same way we ended 2022—demonstrating reasons for both optimism and caution,” Gray said, citing January as the best month for carloads of crushed stone and sand on record, largely due to the growth in domestic natural gas production and the need for frac sand.

Automotive traffic has yet to reach pre-COVID-19 pandemic levels, but posted improvement compared with 2022.

Rail Traffic Mostly Down in September

September turned out to be a downer for rail freight traffic.

The Association of American Railroads said this week that for the month intermodal traffic fell by 4.8 percent while carload traffic was down 1.1 percent.

The percentages are in comparison to traffic in September 2021.

AAR figures showed U.S. Class I railroads originated 928,590 carloads in September 2022, decreasing by 10,639 carloads when compared with the same month last year.

The railroads last month handled 1,011,304 containers and trailers, a decline  of 51,039 units compared with September 2021.

Combined carload and intermodal originations in September 2022 were 1,939,894, down 3.1 percent, or 61,678 carloads and intermodal units when compare with the same month in 2021.

In a news release, AAR’s John T. Gray, senior vice president, said the September decline reflected a decline in consumer purchases.

He said that in late 2020 and throughout 2021 retailers overbought inventory and with slowing consumer demand they now have substantial inventories of unsold goods, which in turn is creating weak replacement demand.

With fewer consumers buying goods via the Internet, there has been less movement of trailers carrying packaged goods by rail.

The AAR said that during September six of the 20 carload commodity categories it tracks posted carload gains compared with September 2021.

These included crushed stone, sand and gravel, up 8,987 carloads or 11.2 percent; motor vehicles and parts, up 8,380 carloads or 18 percent; and coal, up 4,886 carloads or 1.8 percent. Commodities posting declines included primary metal products, down 6,341 carloads or 16.6 percent; all other carloads, down 4,879 carloads or 21 percent; and grain, down 4,227 carloads or 5 percent.

Excluding coal, carloads were down 15,525 carloads, or 2.3 percent, in September compared with the same month in 2022. Excluding coal and grain, carload traffic fell 1,298 carloads, or 1.9 percent.

Total carload traffic for the first nine months of 2022 has been 9,019,302 carloads, up 0.1 percent, or 9,791 carloads compared with the same time last year.

Intermodal traffic has been 10,259,554 units, down 5.1 percent, or 552,271 containers and trailers compared to this time last year.

Total combined traffic for the first 39 weeks of this year has been 19,278,856 carloads and intermodal units, a 2.7 percent fall compared with 2021.

Rail Freight Up 0.4% in August

U.S. Class I railroads handled 1,189,892 carloads in August 2022, a gain of 2.3 percent, or 27,040 carloads when compared with the same month in 2021.

Figures released by the Association of American Railroads showed that during August 2022 the railroads handled 1,335,618 containers and trailers, down 1.2 percent, or 15,856 units, from August 2021.

Combined U.S. carload and intermodal originations last month were 2,525,510, up 0.4 percent, or 11,184 carloads and intermodal units from August 2021.

Eleven of the 20 carload commodity categories tracked by the AAR saw carload gains compared with August 2021.

These included coal, up 17,468 carloads or 5.2 percent; grain, up 12,594 carloads or 14.1 percent; and crushed stone, sand and gravel, up 7,327 carloads or 7.1 percent.

Losing ground were primary metal products, down 6,711 carloads or 14.1 percent; all other carloads, down 4,914 carloads or 15.9 percent; and petroleum and petroleum products, down 3,410 carloads or 6.6 percent.

In a statement, AAR Senior Vice President John T. Gray said there is reason to believe the nation’s economy is on track to stimulate continued improvements in rail volumes.

“To be sure, some traffic categories are doing better than others, just like some sectors of the economy are doing better than others,” Gray said. “Through additional hiring and continued investments, railroads are preparing themselves for growth.”

Rail Freight Traffic in July Was Mixed Picture

The good news in the rail traffic report for July is that 10 of the 20 carload commodities tracked by the Association of American Railroads posted gains.

But the other 10 saw declines, which led AAR Senior Vice President John T. Gray to say in a statement that rail traffic for the month was evenly balanced between gains and losses.

“As such, it does not provide definitive evidence regarding the state of the overall economy,” Gray said. “In that respect, it is very similar to most other recent economic indicators.”

U.S. Class I railroads handled 906,903 carloads in July, an increase of 0.2 percent, or 2,213 carloads when compared with July 2021.

That was offset by the traffic of 1,033,906 containers and trailers, which represented a decline of 3 percent, or 32,094 units.

Combined carload and intermodal traffic for the month was 1,940,809, down 1.5  percent, or 29,881 carloads and intermodal units when compared with July 2021.

AAR said commodities that gained ground during July when compared to the same month in 2021 included coal, up 5,588 carloads or 2.2 percent; crushed stone, sand and gravel, up 5,197 carloads or 6.7 percent; and motor vehicles and parts, up 3,726 carloads or 8.2 percent.

Losing ground were primary metal products, down 7,065 carloads or 19.2  percent; all other carloads, down 3,311 carloads or 15.1  percent; and stone, clay and glass products, down 2,202 carloads or 6.7  percent.

U.S. Rail Freight Traffic Had Mixed March

U.S. rail freight traffic was decidedly mixed during March, the Association of American Railroads reported.

Combined U.S. carload and intermodal originations for the month were 2,507,684, a decline of 3 percent or 78,714 carloads and intermodal units when compared with March 2021.

That breaks down to 1,169,546 carloads—up 1.2 percent or 13,456 carloads compared with the same month in 202.

Intermodal traffic for March 2022 was 1,338,138 containers and trailers, a drop of 6.4 percent or 92,170 units compared with last year.

John T. Gray, AAR senior vice president, said chemical carload traffic had its best month ever but grain, petroleum products and papers products posted significant declines.

At the same time Gray said carloads of crushed stone and sand, food products, lumber, and motor vehicles “were higher than they’ve been in months.”

Calling these trend “conflicting,” Gray said they reflect “an economy with a good deal of directional uncertainty; uncertainty that needs resolution before its full potential can be realized.”

The AAR figures showed that in March nine of the 20 carload commodity categories that it tracks posted gains compared with March 2021.

These included chemicals, up 18,291 carloads or 11.7 percent; coal, up 16,637 carloads or 5.4 percent; and crushed stone, sand and gravel, up 7,974 carloads or 8.5 percent.

Losing ground were grain, down 13,839 carloads or 10.8 percent; petroleum and petroleum products, down 9,033 carloads or 16.5 percent; and all other carloads, down 4,459 carloads or 14.6 percent.

Excluding coal, carloads fell by 3,181, or 0.4 percent. Excluding coal and grain, carloads were up by 10,658, or 1.5 percent.

Total U.S. carload traffic for the first three months of 2022 was 2,987,140, a gain of 2.6 percent, or 76,120 carloads compared with the first three months of 2021.

Railroads handled 3,369,898 intermodal units, a decline of 6.9 percent or 249,672 containers and trailers.

Total combined traffic for the first 13 weeks of 2022 was 6,357,038 carloads and intermodal units, a 2.7 percent decline from 2021.

February U.S. Rail Traffic up 5.7 Percent

February U.S. railroad freight traffic posted a 5.7 percent gain, the Association of American Railroads said this week.

The combined U.S. carload and intermodal originations for the month were 1,945,646 units, a gain of 104,819 carloads and intermodal units when compared with February 2021.

Carloads for the month were 915,329, a gain of 11 percent or 90,525 carloads over February 2020.

Intermodal traffic was 1,030,317 containers and trailers, which was a 1.4 percent or 14,294 increase.

AAR said 15 of the 20 carload commodity categories it tracks posted gains compared with February 2020.

These included: coal, up 47,238 carloads or 21.3 percent; chemicals, up 19,397 carloads or 16.4 percent; and crushed stone, sand and gravel, up 17,918 carloads or 36.3 percent.

Losing ground were motor vehicles and parts, down 6,358 carloads or 11.4 percent; petroleum and petroleum products, down 3,191 carloads or 8 percent; and all other carloads, down 2,162 carloads or 9.3 percent.

“U.S. rail traffic had big year-over-year gains in February largely because severe winter storms held volumes back last February,” AAR Senior Vice President John T. Gray said in a statement..

“That said, there were pockets of real strength last month,” Gray said.

“For example, carloads of chemicals set a new monthly record last month, carloads of coal were the highest in five months and carloads of lumber were the most in eight months.”

Excluding coal, carloads were up 43,287 carloads, or 7.2 percent, in February 2022 compared with February 2021.

Excluding coal and grain, carloads were up 39,619 carloads, or 7.7 percent.

Total U.S. carload traffic for the first two months of 2022 were 1,817,594 carloads, an increase of 3.6 percent, or 62,664 carloads when compared with the same time period in 2020.

The 2,031,760 intermodal units was a drop of 7.2 percent, or 157,502 containers and trailers. Total combined U.S. traffic for the first eight weeks of 2022 was 3,849,354 carloads and intermodal units, falling 2.4 percent from the previous-year period.