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Rail News Home Rail Industry Trends

1/14/2011



Rail News: Rail Industry Trends

AAR: U.S., Canadian roads get out of 2011 traffic gate in good shape


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After an encouraging 2010, U.S. railroads got off to a good traffic start in 2011. During the year’s first full week, which ended Jan. 8, they originated 285,108 carloads, up 20.1 percent, and 213,665 containers and trailers, up 8.6 percent compared with volumes from 2010’s first week, according to the Association of American Railroads (AAR).

Container volume jumped 10 percent and trailer volume rose 1 percent. In addition, 15 of 20 carload commodity groups — including two new groups, iron and steel scrap, and waste and nonferrous scrap — registered year-over-year gains.

Coal volumes climbed 22 percent. Lower utility inventory levels and the potential for colder-than-normal winter weather in the East support railroads’ optimism about near-term utility coal demand, according to Robert W. Baird & Co. Inc.’s latest “Rail Flash” report.

“Additionally, headwinds from lower natural gas prices have begun to moderate as natural gas prices move north of $4 per BTU,” Baird analysts said in the report.

Canadian railroads had a good first week, too, with carload volume up 5.4 percent to 70,742 units and intermodal volume up 3.4 percent to 44,314 units. Mexican railroads reported week No. 1 carloads totaling 12,959 units, down 1.1 percent, and intermodal volume totaling 6,059 units, up 2.9 percent compared with figures from 2010’s first week.

Through 2011’s first week, 13 reporting U.S., Canadian and Mexican railroads originated 368,809 carloads, up 16.1 percent, and 264,038 containers and trailers, up 7.5 percent year over year.