AAR: U.S. rail traffic continues to decline despite grain gains

Combined United States carload and intermodal cargo volumes fell 5.7 percent in August despite a 24.7 percent increase in grain carloads compared with the same 2015 period, according to data from the Association of American Railroads.    United States-based freight railroads in August saw their volumes drop 5.7 percent compared with the same 2015 period despite continued strong gains in grain shipments, according to data from the Association of American Railroads (AAR).
   Total carload traffic dropped 6.6 percent year-over-year for the month to 1.35 million carloads, while intermodal volumes slipped 4.8 percent to 1.33 million containers and trailers.
   Eight of the 20 carload commodity categories tracked by the AAR reported growth in July, including grain, up 24.7 percent; waste and nonferrous scrap, up 25.4 percent; and chemicals, up 1.1 percent. Commodities that posted year-over-year declines for the month included coal, down 16.1 percent; petroleum and petroleum products, down 25.1 percent; and crushed stone, gravel and sand, down 6.9 percent.
   The association noted that excluding coal, volumes of which have plummeted in the past year amid stricter EPA regulations and low prices for alternatives like natural gas, total carload volumes were down just 1 percent (8,703 carloads) from August 2015.
   Total U.S. rail traffic volumes for the first eight months of 2016 have fallen 7.2 percent year-over-year to 17.71 million carloads and intermodal units. Carload traffic dropped 11.1 percent to 8.7 million carloads, and intermodal containers and trailers declined 3.1 percent to 9 million units compared with the same 2015 period.
   “While August showed improvements in some categories, the big story in terms of rail traffic last month was the continuing surge in carloads of grain,” AAR Senior Vice President of Policy and Economics John T. Gray said in a statement.
   “Railroads, along with barges and trucks, are a critical part of the grain logistical chain,” he added. “The fact that this chain generally functions smoothly is a testament to the tremendous efforts that transportation providers, including railroads, put forth in support of their grain-related customers.”