AAR: U.S. rail traffic tumbled again in June

U.S. rail traffic remained soft in June. During the month, U.S. railroads originated 903,397 carloads, down 0.2%, and 988,766 containers and trailers, down 7% compared with volumes from the same month last year, according to Association of American Railroads (AAR) data.

On a combined basis, U.S. traffic slipped 3.9% in June to 1,892,163 total units. Excluding coal and grain traffic, carloads were up 3.8%.

Eleven of the 20 carload commodity categories tracked by the AAR each month posted gains in June. Those groups included metallic ores at 22%, motor vehicles and parts at 21.1%, and crushed stone, sand and gravel at 5.4%. Commodities that registered declines included grain at 24%, chemicals at 2.9% and coal at 1.5%.

“Recent rail traffic patterns point to contrasts in the broader economy. For example, rail intermodal is largely consumer goods, but recent spending on goods has cooled considerably and, with it, intermodal volumes,” said AAR Senior Vice President John Gray in a press release. “On the other hand, rail carloads of industrial products are performing much better, reflecting relative strength in the auto, mineral extraction and other sectors.”

Through 2023’s first six months, U.S. carloads inched up 0.6% to 5,843,735 units while intermodal volume declined 10.3% to 6,113,595 containers and trailers on a year-over-year basis. Total combined U.S. traffic fell 5.3% to 11,957,330 units.

For the week ending July 1, U.S. railroads reported 223,254 carloads, down 1.7%, and 251,189 containers and trailers, down 4.5% year over year. Canadian railroads logged 86,614 carloads, down 3.2%, and 67,511 intermodal units, down 12.8%, while Mexican railroads registered 16,847 carloads, up 21.9%, and 11,937 intermodal units, up 18.2%.