(Reuters distributed the following article on May 20.)
NEW YORK — Chemical shipments on U.S. railroads rose last week, a sign of strong demand amid an economic recovery, according to the Association of American Railroads (AAR), a leading trade group.
Chemical shipments rose 13.8 percent for the week ended May 15, versus the same period a year ago, the AAR reported on Thursday.
Rail shipments — a key indicator of chemical demand — echo other strong industrial trends from April, including a sharp rise in output of U.S. manufacturers, mines, and utilities, and a rise in chemical plant use, according to U.S. government figures.
Last week’s rise in chemical shipments continues a trend of increases that averaged nearly 8 percent over the last six weeks, according to one chemical analyst.
“This is … a strong sign of a chemical industry recovery,” said Frank Mitsch, analyst with Fulcrum Global Partners.
While shipments remain below peak levels in 1997, they have rebounded from their 2001 bottom, he said.
Only 20 percent of U.S. chemical tonnage is carried by rail, but trains handle half of all long-distance hauls, the AAR said. Trucks and barges also ship chemicals.