Combined United States carload and intermodal cargo volumes increased for the fourth consecutive month in February 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 4.2 percent year-over-year to 2.11 million units in February, according to data from the AAR.
United States-based freight railroads saw shipment volumes increase for the fourth consecutive month in February 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 rose 4.2 percent from the previous February to 2.11 million units following increases of 0.5 percent in January, 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.
According to updated AAR data, crude oil volumes in fourth quarter 2016 fell 11.6 percent from third quarter 2016 and 29 percent from fourth quarter 2015 to 43,293 carloads. Overall volumes for the full year in 2016 were down 5 percent compared with 2015.
Carload traffic in February grew 6.7 percent to 1.04 million carloads, while intermodal ticked up 1.8 percent to 1.07 million containers and trailers compared with the same 2016 period.
Eleven of the 20 carload commodity categories tracked by AAR reported year-over-year growth in February, including coal, up 19.2 percent; crushed stone, gravel, and sand, up 13.1 percent; and primary metal products, up 6.8 percent. Commodities that posted declines for the month included petroleum and petroleum products, down 12.4 percent; motor vehicles and parts, down 4.8 percent; and metallic ores, down 19.1 percent from February 2016.
AAR noted that excluding coal, total carload volumes grew just 1.1 percent year-over-year for the month.
Through the first eight weeks of 2017, total U.S. rail traffic has grown 2.3 percent to 4.1 million carloads and intermodal units compared with the prior year period.
“The 19.2 percent increase in coal carloads in February 2017 was the highest percentage gain for coal since sometime before 1988 when our current record series began,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “While it’s an impressive gain, February 2017 was, unfortunately, also the second worst February in absolute terms for coal since sometime before 1988.
“It’s all too representative of the challenges railroads are facing as their markets change. However, these same market changes are offering new opportunities,” he added. “Over the past 15 years, the industry has worked hard to create a solid foundation to exploit these opportunities.”
