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9/9/2011



Rail News: Rail Industry Trends

AAR: August, 35th week were tough traffic periods for U.S. roads


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U.S. railroads ended August with a bit of a thud traffic-wise. During the week ending Sept. 3, they originated 303,260 carloads, down 0.4 percent, and 233,941 containers and trailers, down 1.3 percent compared with volumes from the same week last year, according to the Association of American Railroads (AAR). Only 12 of the 20 carload commodity groups posted gains.

Severe weather continued to impact traffic performance, with the latest results continuing to show seasonal improvement, but at a modestly below seasonal pace, according to Robert W. Baird & Co. Inc.’s weekly “Rail Flash” report.

“Ag continued to remain a drag on overall results; ex-ag carload volumes were up 2 percent year over year in Week No. 35,” Baird analysts said in the report. “Recent rail commentary at investor conferences broadly acknowledged slower growth, though noted stable underlying volume trends.”

U.S. rail traffic was quite sluggish for the entire month of August. Railroads originated 1.5 million carloads, down 0.3 percent, and 1.2 million containers and trailers, up slightly year over year at 0.4 percent, according to the AAR’s “Rail Time Indicators” report for August.

Twelve of 20 carload commodity categories registered increases, led by metallic ores (16.6 percent), primary metal products (11.1 percent) and motor vehicles and parts (8.8 percent). Grain carloads tumbled 17.1 percent and coal traffic dipped 1.7 percent. Excluding coal and grain, U.S. carloads rose 3.7 percent, the report states.
 
Meanwhile, for week No. 35 ending Sept. 3, Canadian railroads reported 79,674 carloads, up 3.3 percent, and 52,868 intermodal loads, up 3.8 percent year over year. Mexican railroads increased carloads 5.3 percent to 14,386 units and boosted intermodal volume 31.5 percent to 9,971 units.
 
Through 2011’s first 35 weeks, 13 reporting U.S., Canadian and Mexican railroads originated 13.2 million carloads, up 2.1 percent, and 9.9 million containers and trailers, up 5.6 percent compared with volume from the same 2010 period.

For more AAR traffic data for the week ending Sept. 3, month of August and through 35 weeks, follow this link.