(The Association of American Railroads issued the following on July 5.)
WASHINGTON, D.C. — U.S. freight railroad carload traffic fell 2.7 percent in June 2007 compared with June 2006, while intermodal traffic fell 1.8 percent compared with the same month last year, the Association of American Railroads (AAR) reported today.
Overall, U.S. railroads originated 1,344,296 carloads of freight in June 2007, down 37,679 carloads (2.7 percent) from June 2006. U.S. railroads also originated 961,545 intermodal units in June 2007, a decrease of 17,956 trailers and containers (1.8 percent) from June 2006.
“Rail volumes remained relatively soft in June, though they are up against some very strong comparisons from last year,” noted AAR Vice President Craig F. Rockey. “Most economists are fairly upbeat about economic growth in the second half of this year, and when the economy does pick up, we can expect rail volumes to rise commensurately,” Rockey added.
Six of the 19 major commodity categories tracked by the AAR saw carload increases in the United States in June 2007 compared to June 2006, led by metallic ores (up 4,347 carloads, or 14.7 percent, to 33,982 carloads) and chemicals (up 4,208 carloads, or 3.6 percent, to 121,727 carloads). Ethanol, a small but rapidly-growing rail traffic segment, is included in the “chemicals” category.
Commodities showing carload declines in June 2007 included crushed stone, sand, and gravel (down 9,543 carloads, or 9.6 percent, to 90,296 carloads); coal (down 8,910 carloads, or 1.6 percent, to 560,397 carloads); grain (down 5,371 carloads, or 6.0 percent, to 83,660 carloads); and metals and metal products (down 4,060 carloads, or 7.0 percent, to 54,193 carloads).
In the second quarter of 2007, total U.S. rail carloadings were down 3.3 percent (147,011 carloads) to 4,305,761 carloads, while intermodal traffic, which consists of trailers and containers on flat cars and is not included in carload figures, was down 2.6 percent (81,992 units) to 3,013,336 trailers and containers.
For the first half of 2007, total U.S. rail carloads were down 358,530 carloads (4.1 percent) to 8,431,637 carloads, as year-over-year increases in chemicals (up 17,204 carloads, or 2.2 percent) and petroleum products (up 8,903 carloads, or 5.7 percent) were not enough to offset declines in crushed stone, sand, and gravel (down 66,228 carloads, or 11.0 percent); coal (down 61,161 carload, or 1.7 percent); and motor vehicles and equipment (down 57,283 carloads, or 9.6 percent), among others.
U.S. intermodal traffic was down 77,384 trailers and containers (1.3 percent) for the first six months of 2007 to 5,952,375 units. At this pace, 2007 will be the second-highest year for U.S. intermodal traffic in history, behind only 2006.
Total volume through the first half of 2007 was estimated at 857.9 billion ton-miles, down 2.8 percent from the first 26 weeks of 2006.
Canadian rail carload traffic was up 5,825 carloads (1.8 percent) in June 2007 to 321,607 carloads. In June, carload gains for chemicals (up 8,387 carloads, or 16.6 percent), coal (up 4,242 carloads, or 14.7 percent), and metals and metal products (up 1,976 carloads, or 22.8 percent), among others, offset declines in carloads of grain (down 4,993 carloads, or 13.4 percent), lumber and wood (down 3,133 carloads, or 16.4 percent), and primary forest products (down 1,809 carloads, or 21.0 percent), among others.
Canadian intermodal traffic was up 4,226 units (2.3 percent) in June 2007 compared with June 2006, to 187,915 units.
In the second quarter of 2007, Canadian carloadings were up 1.3 percent (13,348 carloads) to 1,050,086 carloads, while intermodal traffic was up 2.0 percent (11,834 units) to 609,474 trailers and containers. For the first half of 2007, Canadian carloadings were down 0.7 percent (13,904 carloads) to 2,031,875 carloads, while intermodal traffic was up 1.6 percent (18,807 carloads) to 1,177,480 units.
Carloads carried on Kansas City Southern dé Mexico (formerly Transportación Ferroviaria Mexicana – TFM), a major Mexican railroad, were down 1,965 carloads (4.2 percent) in June 2007 to 44,343 carloads, while intermodal units carried totaled 18,696 units, up 1,313 units (7.6 percent). For the first half of 2007, KCSM carloads carried were down 4.7 percent (13,978 carloads) to 283,018 carloads, while intermodal units carried were up 10.4 percent (10,570 units) to 112,506.
For the week ended June 30, the AAR reported the following totals for U.S. railroads: 336,105 carloads, down 2.6 percent (8,890 carloads) from the corresponding week in 2006, with loadings down 3.7 percent in the East and down 1.8 percent in the West; intermodal volume of 240,446 trailers and containers, down 0.6 percent (1,407 units) from last year; and total volume of an estimated 34.3 billion ton-miles, down 1.4 percent from the corresponding week last year.
For Canadian railroads during the week ended June 30, the AAR reported volume of 79,845 carloads, up 0.3 percent from last year; and 45,673 trailers and containers, up 3.5 percent from the corresponding week of 2006.
Combined cumulative rail volume for the first half of 2007 on 13 reporting U.S. and Canadian railroads totaled 10,463,512 carloads, down 3.4 percent (372,434 carloads) from last year, and 7,129,855 trailers and containers, down 0.8 percent (58,577 units) from 2006.