AAR senior VP says despite the continued strength of the U.S. economy, recent trade policy moves could have a negative impact on freight rail volumes.
Total combined U.S. freight railroad traffic in July grew 5.2 percent to 2.16 million carloads and intermodal units compared with the same month a year ago, according to the latest data from the Association of American Railroads (AAR).
U.S. railroads saw carload shipments climb 3.5 percent year-over-year to 1.05 million carloads for the month, while intermodal traffic jumped 6.9 percent to 1.12 million containers and trailers.
Fifteen of the 20 carload commodity categories tracked by AAR each month saw gains in July, including grain, up 12,066 carloads (14.7 percent); petroleum and petroleum products, up 9,661 carloads (27 percent); and chemicals, up 5,649 carloads (4.6 percent).
Commodities that saw year-over-year declines during the month included coal, down 9,313 carloads (2.7 percent); nonmetallic minerals, down 2,917 carloads (15.6 percent); and metallic ores, down 592 carloads (2.3 percent).
AAR noted that excluding coal, carload volumes grew 6.7 percent in July, and excluding coal and grain, carloads were up 5.5 percent from the same 2017 period.
Through the first seven months of the year, total U.S. rail traffic has risen 3.9 percent year-over-year to 16.06 million carloads and intermodal units. Carload traffic ticked up 1.6 percent to nearly 7.8 million carloads during the period, while intermodal shipments grew 6.1 percent to 8.26 million containers and trailers.
“Rail traffic continues to reflect the strength of the U.S. economy across all major industry sectors, with 15 of the 20 commodity categories we track having higher carloads in July 2018 than in July 2017” said AAR Senior Vice President of Policy and Economics John T. Gray. “July saw especially strong gains in commodities related to the energy sector — and also in categories tied to consumer spending, including automotive and intermodal traffic.
“Still of concern, though, is the potential negative impacts that could result from the ongoing discussions around trade.”
U.S. rail shipments rise 5.2 percent in July
