Combined United States carload and intermodal cargo volumes increased for the third consecutive month in January 2017 following several months of year-over-year declines, according to data from the Association of American Railroads (AAR).
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U.S.-based freight railroads saw volumes grow to 2.02 million units in January, according to data from the AAR.
United States-based freight railroads saw shipment volumes increase for the third consecutive month in January 2017 after several months of year-over-year declines, according to data from the Association of American Railroads (AAR).
Total carload and intermodal traffic for the month grew 0.5 percent from the previous January to 2.02 million units following increases of 6.9 percent in December 2016 and 1.1 percent in November.
The November increase in rail traffic followed several months of year-over-year declines, as volumes of traditional rail commodities like coal and crude oil have plummeted amid stricter EPA regulations and low prices for alternatives like natural gas. Overall volumes for the full year in 2016 were down 5 percent compared with 2015.
Carload traffic in January grew 2.9 percent to 996,573 carloads, while intermodal slipped 1.8 percent to 1.02 million containers and trailers.
Nine of the 20 carload commodity categories tracked by AAR reported year-over-year growth in January, including coal, up 11.9 percent; grain, up 5.2 percent; and waste and nonferrous scrap, up 20.9 percent. Commodities that posted declines for the month included petroleum and petroleum products, down 19.5 percent; chemicals, down 3.6 percent; and stone, clay and glass products, down 10.9 percent from January 2016.
AAR noted that excluding coal, volumes of which have plummeted in the past 18 months to stricter EPA regulations and cheaper alternatives like natural gas, total carload volumes grew 1.1 percent year-over-year for the month.
“January rail traffic paints a mixed picture, with some commodities exceeding expectations, while others remained flat or down,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “For most of last year, coal carloads were down sharply, but for the past couple of months, including January, they’ve been the major force behind rail carload gains.
“We can probably expect continued uncertainty in energy markets going forward, but we’re hopeful that improving macro-economic fundamentals will drive improvement in rail volumes for many commodity categories this year,” he added.
