US railroads faced intermodal headwinds in April

Intermodal continued to be a drag on U.S. rail traffic in April, with railroads logging a 6% decrease in combined volume compared to the same month a year ago, according to Association of American Railroads data.

U.S. railroads reported carloads last month increased 1.8% to 936,637 units, while the number of intermodal units fell 12.7% to 945,313 containers and trailers. The railroads posted a total of 1,881,950 carloads and intermodal units.

Seven of the 20 carload commodity categories tracked by the AAR each month logged gains in April. They included coal, up 4.1%; crushed stone, sand and gravel, 9.7%; and motor vehicles and parts, 12.3%.

Commodities that posted declines included chemicals, down 3.4%; grain, 3.7%; and nonmetallic minerals, 14.9%.

U.S. carload traffic for the first four months of 2023 totaled 3,930,129 units, a 0.6% increase year over year. Intermodal volumes during that period plummeted 10.9%.

"Intermodal continues to suffer because of significantly lower trade activity at ports, weaker consumer demand and continued excess retail inventories from the pandemic era," said AAR Senior Vice President John Gray in a press release.

But the headwinds won’t last forever, Gray added.

"When they dissipate, railroads will be prepared to meet their customers' needs safely and reliably," he said.