AAR: U.S. rail traffic drops 5% in 2016

Combined United States carload and intermodal cargo volumes increased for the second consecutive month in December 2016, but the growth was not enough to offset several months of previous year-over-year declines.    United States-based freight railroads saw shipment volumes increase for the second consecutive month in December 2016, but the growth was not enough to offset several months of previous year-over-year declines, according to data from the Association of American Railroads (AAR).
   Total carload and intermodal traffic for the month jumped 6.9 percent from the previous December to 1.99 million carloads after a 1.1 percent increase in November, but overall volumes were still down 5 percent for the full year in 2016.
   The November increase in rail traffic followed several months of year-over-year declines, as volumes of traditional rail commodities like coal and crude oil have plummeted amid stricter EPA regulations and low prices for alternatives like natural gas.
   Carload traffic in December grew 2.8 percent to 973,642 carloads, while intermodal shot up 11.2 percent to 1.01 million containers and trailers.
   Thirteen of the 20 carload commodity categories tracked by AAR reported year-over-year growth in December, including coal, up 4.2 percent; grain, up 10.5 percent; and chemicals, up 3.9 percent. Commodities that posted declines for the month included petroleum and petroleum products, down 17.4 percent; crushed stone, gravel and sand, down 4.1 percent; and miscellaneous carloads, down 5.9 percent.
   AAR noted that excluding coal, volumes of which have plummeted in the past year due to stricter EPA regulations and cheaper alternatives like natural gas, total carload volumes grew 2 percent in December compared with December 2015.
   For the full year in 2016, carloads dropped 8.2 percent to just under 13.1 million units, and intermodal shipments slipped 1.6 percent to 13.49 million containers and trailers compared with the previous year.
   “Last year was challenging for freight railroads,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “Rail carloads were down for the second consecutive year, due mainly to a weak manufacturing economy and turmoil in energy markets, while intermodal failed to set its fourth straight annual record.
   “That said, there are signs that the economy may be gradually returning to a period of growth,” he added.