U.S. rail carload and intermodal volumes see mixed results in May, reports AAR
United States rail carload and intermodal volumes, for the month of May, were mixed, according to data issued this week by the Association of American Railroads (AAR).
Rail carloads, at 1,060,801, fell 6.0%, or 67,145 carloads, annually, said AAR. When excluding coal, carloads increased 0.3%, or 2,259 carloads, annually, and when excluding coal and grain, July carloads were down 0.3%, or 2,159 carloads.
AAR added that 14 of the 20 carload commodity groups it tracks saw annual gains, including: petroleum & petroleum products, up 7,123 carloads or 15.4%; chemicals, up 5,023 carloads or 3.2%; and grain, up 4,418 carloads or 4.7%. Commodities posting annual declines included: coal, down 69,404 carloads or 22.0%; crushed stone, sand & gravel, down 12,569 carloads or 11.4%; and primary metal products, down 3,016 carloads or 7.2%.
Intermodal containers and trailers, at 2,342,049 units, increased 1.0%, or 23,500 units, annually.
“At first glance, rail traffic in May seems to display mixed signals,” stated Rand Ghayad, Chief Economist of the Association of American Railroads. “While coal’s continued decline has led to a decrease in total carloads, a closer examination reveals that carloads (excluding coal) increased for the fourth consecutive month. Although it is unlikely that we will witness a reversal in coal’s trend, other commodities—such as intermodal traffic and petroleum—hold greater growth potential and will likely be more important strategically for railroads in the future. In May, intermodal traffic spiked, maintaining its upward trajectory over several months. This surge reflects both increased port activity and intensified efforts by railroads to compete in a fiercely competitive market. Additionally, solid volume gains were observed for petroleum products, chemicals, and grain.”
Through the first five months of 2024, AAR reported that U.S. rail carloads, at 4,683,510, fell 5.0%, or 247,894 carloads, annually, and intermodal units, at 5,568,464, increased 8.7%, or 443,453 units, annually.
