AAR: U.S. freight rail traffic drops 6.5% in Q1

Combined United States carload and intermodal cargo volumes fell 11 percent in March compared with March 2015, according to data from the Association of American Railroads.    United States-based freight railroads in the first quarter of 2016 saw their volumes drop 6.5 percent compared to first quarter of 2015, according to data from the Association of American Railroads.
   U.S. carload traffic fell 13.8 percent to 3,143,251 carloads for the quarter, but intermodal shipments inched up 1.5 percent to 49,958 containers and trailers when compared with the same 2015 period.
   For the month of March, total carload and intermodal volumes were down 11 percent compared with March 2015. Carload traffic plunged 14.2 percent year-over-year in March to 1,196,167 carloads, while intermodal volumes dipped 7.7 percent to 1,250,925 containers and trailers.
   Seven of the 20 carload commodity categories tracked by the AAR reported growth in March, including chemicals, up 5.5 percent; miscellaneous carloads, up 24.8 percent; and motor vehicles and parts, up 5.2 percent. Commodities that posted year-over-year declines for the month included coal, down 35.9 percent; petroleum and petroleum products, down 22.4 percent; and metallic ores, down 27.1 percent.
   AAR noted that excluding coal, volumes of which have plummeted in the past year amid stricter EPA regulations surrounding its use, total carload volumes were down 1.2 percent from March 2015.
   “Railroads are still looking for the light at the end of the tunnel, and for some commodities, including coal and other energy-related products, it’s just not there yet,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement. “That said, most economists are calling for continued slow but steady economic growth for the U.S. in the months ahead. Railroads stand ready to provide the freight transportation service the economy will require.”