US rail volumes fell over 20% in April

U.S. rail traffic tumbled about 21% in April as falling volumes for coal, motor vehicles and parts, and chemicals contributed to a “historic” monthly decline, according to the Association of American Railroads (AAR).

U.S. rail volumes totaled nearly 2.1 million carloads and intermodal units in April, a 21.2% decline from April 2019. Of that, carloads fell 25.2% to 980,535, while intermodal units slipped 17.2% to nearly 1.1 million containers and trailers. 

The biggest carload declines in April included coal, which fell 38% amid falling natural gas prices and warming spring weather; motor vehicles and parts, which declined 86.3% as the COVID-19 pandemic dampened consumer spending; and chemicals, which slipped 11.9% amid declining manufacturing production.

AAR Senior Vice President John T. Gray said the 25.2% year-over-year decline in total rail carloads was the “worst decline” for total carloads for any month since AAR’s records began in 1989, while the 17.2% drop in April intermodal loadings was the worst since the summer of 2009.

“Coal and autos were by far the worst-hit commodities in April, but declines spanned the industrial spectrum, hitting finished steel and steel scrap, chemicals, petroleum products, sand and stone, and much else,” Gray said. “We don’t know exactly when it will happen, but our economy — and rail traffic — will rebound. No matter what, the men and women on our nation’s railroads will do their part to keep supply chains moving safely and efficiently as they link our businesses and communities to each other and to the world.”