Varying market conditions affect rail traffic volumes in the US

In July 2023, nine of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with July 2022. These included: motor vehicles & parts, up 6437 carloads or 13.1%; crushed stone, sand & gravel, up 6079 carloads or 7.5%; and primary metal products, up 2935 carloads or 10.3%. Commodities that saw declines in July 2023 from July 2022 included: grain, down 15 585 carloads or 21.0%; coal, down 5,709 carloads or 2.2%; and pulp & paper products, down 1631 carloads or 9.1%.

“As the economy goes so goes rail traffic, and we’re seeing that with the mixed results across volumes being affected by larger varying market conditions,” said AAR Senior Vice President John T. Gray. “The three non-July 4 weeks in July were the three highest volume intermodal weeks of the year, and carloads of chemicals rose in July for the first time in almost a year. At the same time, July was exceptionally weak for grain carloadings. July rail volumes are always affected by Independence Day closures, so we are cautious to put too much stock in this month’s results, but there are reasons for both optimism and caution.”

Excluding coal, carloads were up 110 carloads, or 0.0%, in July 2023 from July 2022. Excluding coal and grain, carloads were up 15 695 carloads, or 2.9%.

Total U.S. carload traffic for the first seven months of 2023 was 6,719,395 carloads, up 0.4%, or 26 948 carloads, from the same period last year; and 7,081,148 intermodal units, down 9.6%, or 755 112 containers and trailers, from last year.

Total combined U.S. traffic for the first 30 weeks of 2023 was 13 800 543 carloads and intermodal units, a decrease of 5.0% compared to last year.

Total U.S. weekly rail traffic was 483 481 carloads and intermodal units, down 2.6% compared with the same week last year.

Total carloads for the week ending July 29 were 230 511 carloads, down 0.0% compared with the same week in 2022, while U.S. weekly intermodal volume was 252 970 containers and trailers, down 4.8% compared to 2022.

Six of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included nonmetallic minerals, up 2381 carloads, to 34 599; motor vehicles and parts, up 2331 carloads, to 15 353; and petroleum and petroleum products, up 1644 carloads, to 10 211. Commodity groups that posted decreases compared with the same week in 2022 included grain, down 5,557 carloads, to 15 032; forest products, down 1061 carloads, to 7948; and coal, down 710 carloads, to 67 915.

North American rail volume for the week ending July 29, 2023, on 10 reporting U.S., Canadian and Mexican railroads totaled 336,501 carloads, up 0.8% compared with the same week last year, and 333 238 intermodal units, down 7.3% compared with last year. Total combined weekly rail traffic in North America was 669,739 carloads and intermodal units, down 3.4%. North American rail volume for the first 30 weeks of 2023 was 19 360 049 carloads and intermodal units, down 4.1% compared with 2022.

Canadian railroads reported 88 057 carloads for the week, up 3.0%, and 68 604 intermodal units, down 15.9% compared with the same week in 2022. For the first 30 weeks of 2023, Canadian railroads reported cumulative rail traffic volume of 4 723 996 carloads, containers and trailers, down 2.8%.

Mexican railroads reported 17 933 carloads for the week, up 0.5% compared with the same week last year, and 11 664 intermodal units, down 3.6%. Cumulative volume on Mexican railroads for the first 30 weeks of 2023 was 835 510 carloads and intermodal containers and trailers, up 3.5% from the same point last year.

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/03082023/varying-market-conditions-affect-rail-traffic-volumes-in-the-us/