Intermodal Rail Traffic Surpasses Carloads for First Month on Record
AARU.S. rail intermodal traffic surpassed carload volume in May for the first month on record, the Association of American Railroads reported.
Intermodal volume increased 3.8% in May to 1.086 million as carloads declined 9.4% to 1.074 million, AAR said June 3 in its weekly report.
“Mixed signals is a good term to use to describe the economy nowadays, and it applies to rail traffic too. Intermodal is on its way to another record-breaking year, but carload traffic is not doing well,” John Gray, AAR senior vice president policy and economics said in a statement.
Five of the 20 commodity groups AAR tracks increased over last year, led by motor vehicles and parts at 4.5%. Coal declined 17.4% year over year.
“The degree to which coal carloads have fallen has been a surprise, and the relative weakness in other carload categories is a sign that the economy is probably not yet in bounce-back mode after a dismal first quarter,” said Gray.
Excluding coal, carloads declined 4.5% in May compared to the same month last year.
Intermodal traffic for the week ended May 30 rose 2.1% to 247,170, compared with the same week last year, according to AAR. The rise follows a 4.3% increase the prior week.
Rail carload volume for the week, which excludes intermodal units, dropped 10.7% year-over-year to 258,373 carloads.
Four of the 10 commodity groups AAR tracks increased over last year for the week, led by miscellaneous carloads at 6.1%. For the week, coal declined 21.8% to 88,025 units.
Full-year intermodal traffic increased 2% to 5.5 million units from the prior year.
