For this week, total U.S. weekly rail traffic was 513,147 carloads and intermodal units, down 8.8% compared with the same week last year.
Total carloads for the week ending Oct. 26 were 243,321 carloads, down 9.4% compared with the same week in 2018, while U.S. weekly intermodal volume was 269,826 containers and trailers, down 8.3% compared to 2018.
None of the 10 carload commodity groups posted an increase compared with the same week in 2018. Commodity groups that posted decreases compared with the same week in 2018 included coal, down 14,797 carloads, to 73,184; grain, down 2,152 carloads, to 21,135; and metallic ores and metals, down 2,064 carloads, to 21,291.
For the first 43 weeks of 2019, U.S. railroads reported cumulative volume of 10,843,404 carloads, down 4.2% from the same point last year; and 11,457,177 intermodal units, down 4.4% from last year. Total combined U.S. traffic for the first 43 weeks of 2019 was 22,300,581 carloads and intermodal units, a decrease of 4.3% compared to last year.
North American rail volume for the week ending Oct. 26, on 12 reporting U.S., Canadian and Mexican railroads totaled 344,796 carloads, down 8.6% compared with the same week last year, and 360,303 intermodal units, down 7.3% compared with last year. Total combined weekly rail traffic in North America was 705,099 carloads and intermodal units, down 8%. North American rail volume for the first 43 weeks of 2019 was 30,449,640 carloads and intermodal units, down 3.2% compared with 2018.
Canadian railroads reported 81,902 carloads for the week, down 7.9%, and 71,105 intermodal units, down 3.6% compared with the same week in 2018. For the first 43 weeks of 2019, Canadian railroads reported cumulative rail traffic volume of 6,523,922 carloads, containers and trailers, up 0.7%.
Mexican railroads reported 19,573 carloads for the week, down 1.1% compared with the same week last year, and 19,372 intermodal units, down 5.6%. Cumulative volume on Mexican railroads for the first 43 weeks of 2019 was 1,625,137 carloads and intermodal containers and trailers, down 2.8% from the same point last year.
— From an Association of American Railroads news release. Oct. 30, 2019.
Let’s not forget the strike against General Motors. This no doubt had an effect on rail traffic over the past 5 weeks.
Look for the auto segment to rebound as shipments of vehicles and parts resumes.
Economic deceleration combined with pricing/operating practices coming into full view. Economy only growing at 1.9%, compared to 3% a year ago. That’ll take a lot off rail traffic, especially when a lot of it is tied to trade. But the railroad’s pricing strategies aren’t helping volume, either. But as I keep saying, volume does not equal revenue which does not equal profit. The railroads are doing just fine, but perhaps may need to let off the pricing pressures in the near to medium term as the economic slack causes demand for freight shipping to fall, in order to hold volume and market share. Basic supply and demand in action.