U.S. rail volumes up 3.7 percent in first half of 2018

AAR senior VP: “For now, things are looking good for the railroads and the economy despite the many threats, such as a potential trade war, that could bring change quickly.”    Total combined U.S. freight railroad traffic in June grew 4.2 percent to 2.24 million carloads and intermodal units compared with the same month a year ago, according to the latest data from the Association of American Railroads (AAR).
   U.S. railroads saw carload shipments climb 2 percent year-over-year to 1.08 million carloads for the month, while intermodal traffic rose 6.3 percent to 1.16 million containers and trailers.
   Fourteen of the 20 carload commodity categories tracked by AAR each month saw gains in June, including petroleum and petroleum products, up 7,411 carloads (19.7 percent); crushed stone, sand and gravel, up 7,276 carloads (7.1 percent); and chemicals, up 4,608 carloads (3.7 percent).
   Commodities that saw year-over-year declines during the month included coal, down 9,396 carloads (2.7 percent); nonmetallic minerals, down 3,552 carloads (18.8 percent); and waste and nonferrous scrap, down 618 carloads (3.8 percent).
   AAR noted that excluding coal, carload volumes grew 4.3 percent in June, and excluding coal and grain, carloads were up 4.2 percent from the same 2017 period.
   Through the first six months of the year, total U.S. rail traffic has risen 3.7 percent year-over-year to just over 13.9 million carloads and intermodal units. Carload traffic ticked up 1.3 percent to 6.75 million carloads during the period, while intermodal shipments grew 6 percent to 7.15 million containers and trailers.
   “Rail traffic in June was consistent with a healthy economy,” said AAR Senior Vice President of Policy and Economics John T. Gray. “In June, 14 of the 20 commodity categories the AAR tracks each month saw carload gains — the third straight month in which at least 14 categories were up. That’s the longest such streak since late 2014.
   “Meanwhile, record intermodal volume for June speaks to the high value proposition that rail customers associate with intermodal service,” he added. “For now, things are looking good for the railroads and the economy despite the many threats, such as a potential trade war, that could bring change quickly.”
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