Rail stats show “better things on horizon”
Rail stats show “better things on horizon”
The Association of American Railroads said Wednesday that while U.S. rail intermodal traffic in September was 993,235 units, down 14.6 percent compared with the same month last year, average weekly intermodal units was the highest since November 2008.
AAR noted that the relative improvement in intermodal traffic may be related to retailers restocking shelves for the upcoming holiday season.
September’s monthly carload data also showed a decline — 1.38 million carloads, down 14.2 percent from the same month in 2008. AAR said weather may have played a role in this decline, with flooding in the U.S. Southeast affecting traffic across many commodity categories.
Lower natural gas prices and the relatively mild summer may also have been a factor in carload declines, since there was a drop in demand for coal — the single-largest commodity shipped by railroads. Coal traffic was down 13.3 percent to 645,843 carloads compared with September 2008.
“The data in the October report gives us some indication that better things may be on the horizon,” said AAR John Gray, senior vice president of policy and economics. “While some of this activity is seasonal, railroads have taken more than 15,000 cars out of storage between Sept. 1 and Oct. 1. However, we must continue to wait and see.”