U.S. freight-rail traffic rose 4.2% in March

U.S. freight-rail traffic climbed 4.2% to 1,889,186 carloads, containers and trailers in March compared with traffic logged in March 2023, according to Association of American Railroads data.

The railroads’ combined carload total fell 3.5% to 866,865 units, but intermodal volume jumped 11.7% to 1,022,321 containers and trailers.

Eleven of the 20 carload commodity groups that AAR tracks monthly posted gains in March. They included grain, up 11.4%; chemicals, up 5.7%; and petroleum and petroleum products, up 15%.

Commodities that posted decreases included coal, down 18.6%; crushed stone, sand and gravel, down 6.7%; and metallic ores, down 8.9%.

"Large swaths of rail traffic reflect broader economic changes," said Rand Ghayad, AAR’s chief economist, in a press release. "The recent announcement by the Institute for Supply Management that its manufacturing sentiment index turned positive in March aligns with rail carloads, excluding coal, showing a healthy 2.9% growth. This growth was driven largely by chemicals, petroleum products, and autos, critical components of our economy."

Conversely, coal volume continued to decline, as electricity generation markets continue to shift, he noted.

"Intermodal was again a bright spot in March, reflecting stable consumer spending, increasing port activity and a reduction in inventory destocking," Ghayad said.

U.S. rail volume for the first three months of 2024 added up to 2,773,827 units, down 4.2%, and 3,268,647 intermodal units, up 9.1%, compared to a year ago.

Combined U.S. traffic for the first 13 weeks of the year totaled 6,042,474 carloads, containers and trailers, a 2.5% increase compared with volume recorded in the same period a year ago.