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Rail News Home Rail Industry Trends

4/30/2010



Rail News: Rail Industry Trends

AAR weekly report: U.S. railroads continue to tally traffic gains


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Last week, U.S. railroads not only originated their most carloads since December 2008, they handled their most intermodal loads so far in 2010. During the week ending April 24, the railroads originated 298,218 carloads, up 14.6 percent, and 212,347 intermodal loads, up 15.1 percent compared with totals from the same week last year, according to the Association of American Railroads (AAR).

Carload volumes have surpassed 2009 levels since Week No. 8, said Robert W. Baird & Co. Inc. analysts in their weekly “Rail Flash” report.

“Encouragingly, volume improvements have continued into April, which suggests economic improvement as opposed to backlog resulting from February winter weather,” they said.

Meanwhile, Canadian railroads reported weekly carloads totaling 75,049, up 22.5 percent, and intermodal volume totaling 45,864 units, up 10.1 percent year over year. Mexican railroads reported 14,016 carloads, up 27.3 percent, and 6,164 intermodal loads, up 4.8 percent.

Through 2010’s first 16 weeks, 13 reporting U.S., Canadian and Mexican railroads originated 5.8 million carloads, up 7.6 percent, and 4.1 million containers and trailers, up 9.9 percent. For more AAR traffic data for the week ending April 24 and through 16 weeks, follow this link.

Meanwhile, the AAR also recently released a study conducted with the U.S. Departments of Agriculture and Transportation that shows how the transportation link between railroads and agri-business supports the nation’s economy. Although agricultural product shippers’ rail rates have risen in recent years, the increase “pales in comparison” with farmers’ other price hikes, including the cost of fertilizers (up 304 percent), fuel (up 244 percent) and seed (up 154 percent), the AAR said.

“Railroads provide that vital link for our nation’s grain and coal to be sold on the global marketplace, and our efficiency and cost-effectiveness make that possible,” said AAR President and Chief Executive Officer Edward Hamberger in a prepared statement. “Maintaining a healthy rail industry is vital to meeting President Obama’s goal of doubling exports."