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Snowstorms didn’t hamper U.S. railroads’ traffic last week like they did the week before, but sluggish coal demand did. During the week ending Feb. 20, their carloads declined 1.6 percent to 273,999 units compared with traffic from the same week in 2009, according to the Association of American Railroads (AAR). Coal volume tumbled by 16,828 units year over year, a primary reason total weekly volume dropped 0.7 percent to an estimated 29.8 billion ton-miles.

Coal volume trends will remain negative through the first quarter until comparisons ease in the second quarter, said Robert W. Baird & Co. Inc. analysts in their weekly “Rail Flash” report.

“Utility stockpiles remain elevated, but well off recent highs,” they said. “Improved industrial production, exports and strong demand (weather) should result in a faster-than-expected return to normal coal carload demand.”
 
Meanwhile, U.S. railroads’ intermodal traffic rose sharply because of strong domestic demand and higher international volumes. During the week ending Feb. 20, they handled 200,204 containers and trailers, up 19 percent year over year.

Canadian railroads reported weekly volume of 70,455 carloads, up 9.6 percent, and intermodal volume of 43,605 units, up 12.5 percent. Mexican railroads reported 14,099 carloads, up 25.3 percent, and 6,364 intermodal loads, up 12.7 percent.

For more AAR traffic data for the week ending Feb. 20 and through 2010’s first seven weeks, follow this link.