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North American rail traffic improves despite weakness in steel

Friday, 07 June 2013 01:48:19 (GMT+3)   |   San Diego
       

The Association of American Railroads (AAR) reported Thursday that total US rail traffic increased for the month of May 2013. May 2013 saw the first year-over-year monthly total carload increase in 16 months, and the 42nd straight monthly increase in intermodal traffic.

Intermodal traffic in May totaled 1,214,116 containers and trailers, up 3 percent (35,790 units) compared with May 2012. The weekly average of 242,823 units for May was the highest weekly intermodal average for any May in history. Carloads originated in May totaled 1,401,584, up 0.7 percent (9,551 carloads) compared with the same month last year. 

Eleven of the 20 major commodity categories tracked on a monthly basis by AAR saw year-over-year increases in May compared with the same month last year. Commodities with the biggest carload increases in May included petroleum and petroleum products, up 41.8 percent or 20,837 carloads and motor vehicles and parts, up 6.2 percent or 4,916 carloads. Commodity categories with carload declines last month included primary metal products, down 7.2 percent or 3,989 carloads.

"The economy is still not firing on all cylinders, and rail traffic in May reflects that," said AAR Senior Vice President of Policy and Economics John Gray. "Pockets of rail traffic growth, such as autos, nonmetallic minerals, and commodities related to crude oil extraction are being countered by continued weakness in steel-related commodities, paper, and grain, among others. Like everyone else, railroads are hopeful that the economy will soon finally shake off its malaise and start reaching its potential."

For the first 22 weeks of 2013, US railroads reported cumulative volume of 6,081,180 carloads, down 1.7 percent from the same point last year, and 5,261,051 intermodal units, up 4.1 percent from last year. Total US traffic for the first 22 weeks of 2013 was 11,342,231 carloads and intermodal units, up 0.9 percent from last year.

Combined North American rail volume for the first 22 weeks of 2013 on 13 reporting US, Canadian and Mexican railroads totaled 8,139,410 carloads, down 0.4 percent compared with the same point last year, and 6,611,024 trailers and containers, up 4.2 percent compared with last year.


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