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Rail News Home Rail Industry Trends

6/25/2010



Rail News: Rail Industry Trends

AAR weekly report: U.S. roads' intermodal volume reaches 19-month high


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Chalk up another good week intermodal-wise for U.S. railroads. During the week ending June 19, they handled 227,985 containers and trailers, up 21.2 percent year over year and their highest weekly volume in 19 months, according to the Association of American Railroads (AAR).

Their weekly carload volume wasn’t too shabby, either, climbing 9.2 percent to 284,913 units. Metallic ores volume shot up 108.9 percent and metals/metal products traffic soared 78.2 percent vs. volume from the same week last year.

Agricultural products volume declined 4 percent for the week, but despite volatility, remains up 5 percent so far in the second quarter, according to Robert W. Baird & Co. Inc.’s weekly “Rail Flash” report.

Ag volume is “tracking roughly with the USDA estimate of 6 percent year-over-year increases in combined corn, wheat and soybeans this past harvest,” Baird analysts said in the report. “Positives include the animal feed outlook and ethanol demand, [while] negatives include recently weak grain futures and a strong South American winter harvest outlook.”

Meanwhile, Canadian railroads reported week No. 24 volume of 73,788 carloads, up 22.3 percent, and 49,749 containers and trailers, up 25.9 percent.  For the week ending June 19, Mexican railroads reported 15,410 carloads, up 15.3 percent, and 7,157 intermodal loads, up 49.2 percent.

Through 2010’s first 24 weeks, 13 reporting U.S., Canadian and Mexican railroads originated 8.8 million carloads, up 10.3 percent, and 6.2 million containers and trailers, up 12.5 percent year over year.

For more AAR traffic data for the week ending June 19 and through 24 weeks, follow this link.