Combined United States carload and intermodal cargo volumes increased for the fifth consecutive month in March 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 fifth consecutive month in March 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 5.5 percent from the previous March to 2.58 million units following increases of 4.2 percent in February, 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.
Carload traffic in March grew 7.3 percent to 1.28 million carloads, while intermodal increased 3.8 percent to 1.3 million containers and trailers compared with the same 2016 period.
Thirteen of the 20 carload commodity categories tracked by AAR reported year-over-year growth during the month, including coal, up 19 percent; crushed stone, gravel, and sand, up 12.5 percent; and grain, up 10.6 percent. Commodities that posted declines for the month included motor vehicles and parts, down 5.3 percent; petroleum and petroleum products, down 8.1 percent; and chemicals, down 1.3 percent from March 2016.
AAR noted that excluding coal, total carload volumes grew just 2.7 percent year-over-year in March.
Through the first three months of 2017, total U.S. rail traffic has grown 3.5 percent to 6.71 million carloads and intermodal units compared with the prior year period.
“Railroading is not for the faint of heart, as markets are continually changing and railroads have to adapt to changing circumstances,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “Despite recent increases, in absolute terms rail coal volumes are much lower than they were even a few years ago, and rail crude oil volumes are roughly half what they were a couple of years ago. On the other hand, this was the best March ever for carloads of crushed stone, sand, and gravel, and it was the best March for grain since 2008.”
“This was the best first quarter ever for U.S. railroad intermodal volume,” he added. “Roughly half of intermodal is international trade, but it’s not just intermodal that’s associated with international trade. At least 42 percent of the carloads and intermodal units our nation’s railroads carry, and more than 35 percent of rail revenue, are directly associated with international trade. Approximately 50,000 rail jobs, worth over $5.5 billion in annual wages and benefits, depend directly on international trade.”
