Freight rail traffic increases in US despite dips in steel-related shipments

The Association of American Railroads (AAR) reported Thursday increased US rail traffic for March 2014, with both carload and intermodal volume increasing compared with March 2013. Intermodal traffic in March totaled 1,025,907 containers and trailers, up 9.9 percent (92,661 units) compared with March 2013, and the 52nd-consecutive year-over-year monthly increase for intermodal volume.  The weekly average of 256,477 intermodal units on US railroads in March 2014 was easily the highest for any March in history and was the fourth highest for any month in history. Meanwhile, US carload originations totaled 1,156,697 in March 2014, up 3.5 percent (38,628 carloads) over March 2013.
 
Eleven of the 20 commodity categories tracked by the AAR each month saw year-over-year carload increases in March. Commodities with the biggest carload increases included grain, up 14,272 carloads or 21.2 percent; coal, up 9,649 carloads or 2.2 percent; crushed stone, sand and gravel, up 4,454 carloads or 5.6 percent; and petroleum and petroleum products, up 4,524 carloads or 8.2 percent.
 
Commodity categories with carload declines last month included iron and steel scrap, down 2,602 carloads or 13.7 percent; metallic ores, down 1,345 carloads or 7.1 percent; and steel and other primary metal products, down 874 carloads or 2.1 percent.
 
Excluding coal and grain, carloads were up 14,707 carloads, or 2.9 percent, in March 2014 over the same month last year.
 
“US rail traffic rebounded strongly in March 2014 following a sub-par February.  Grain led the way, as railroads are working hard to move the biggest grain harvest in history,” said AAR Senior Vice President John T. Gray. “In addition, coal carloads rose in March, something that’s happened just one other time in the past two years.  March also demonstrated that we have every reason to be optimistic that 2014 will break 2013’s intermodal volume record.”