Combined United States carload and intermodal cargo volumes fell 6.3 percent for the month compared with June 2015 and 7.4 percent for the half of 2016, according to data from the Association of American Railroads.
United States-based freight railroads in June saw their volumes drop 6.3 percent compared to June 2015, according to data from the Association of American Railroads (AAR).
Carload traffic fell 7 percent year-over-year for the month to 1.25 million carloads, while intermodal volumes slipped 5.6 percent to 1.3 million containers and trailers.
Six of the 20 carload commodity categories tracked by the AAR reported growth in June, including grain, up 13.8 percent; miscellaneous carloads, up 17 percent; and waste and nonferrous scrap, up 16.4 percent. Commodities that posted year-over-year declines for the month included coal, down 16.4 percent; petroleum and petroleum products, down 22.2 percent; and crushed stone, gravel and sand, down 6.6 percent.
The association noted that excluding coal, volumes of which have plummeted in the past year amid stricter EPA regulations and low prices for alternatives like natural gas, total carload volumes were down just 2.3 percent from June 2015.
Total U.S. rail traffic volumes for the first half of 2016 has fallen 7.4 percent year-over-year to 13 million carloads and intermodal units. Carload traffic has fallen 12.3 percent to 6.3 million carloads, and intermodal containers and trailers are down 2.1 percent to 6.7 million units compared with the same 2015 period.
“Rail traffic remains relatively weak, with slightly better coal volumes in June offset by continued weakness in intermodal caused in part by an inventory overhang and global economic uncertainty,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “Because current economic indicators are presenting a mixed picture, it’s not clear if railroads should be pessimistic or cautiously optimistic about the near- to medium term.”
AAR: U.S. freight rail traffic continues to decline in June
