WASHINGTON — U.S. rail traffic slumped 4.3% in August, with both carload and intermodal volume showing declines, according to the Association of American Railroads.
“August was the third straight month in which total year-over-year U.S. rail carloads have fallen,” said AAR Senior Vice President John T. Gray. “A major reason why is that other than automotive manufacturing, the industrial economy, in recent months, has not been doing as well as other areas of the economy. Until industrial activity, and especially manufacturing, recovers, rail volumes in many key markets could remain constrained.”
U.S. railroads originated 1,133,375 carloads in August 2023, down 2.0%, or 23,323 carloads, from August 2022. U.S. railroads also originated 1,239,290 containers and trailers in August 2023, down 6.3%, or 83,717 units, from the same month last year. Combined U.S. carload and intermodal originations in August 2023 were 2,372,665, down 4.3%, or 107,040 carloads and intermodal units from August 2022.
In August 2023, nine of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with August 2022. These included: motor vehicles and parts, up 13.6%; petroleum and petroleum products, up 12.9%; and primary metal products, up 4.6%. Commodities that saw declines in August 2023 from August 2022 included: grain, down 22.9%; coal, down 2.8%; and pulp and paper products, down 10.2%.
Total U.S. carload traffic for the first eight months of 2023 was flat, while intermodal volume was down 9.2%. Total combined U.S. traffic for the first 35 weeks of 2023 declined 4.9% compared to last year.
For the week ending Sept. 2, total U.S. weekly rail traffic down 5.4% compared with the same week last year.
North American rail volume for the week ending Sept. 2, on 10 reporting U.S., Canadian and Mexican railroads totaled 337,338 carloads, down 0.1% compared with the same week last year, and 328,232 intermodal units, down 9.9% compared with last year. Total combined weekly rail traffic in North America was 665,570 carloads and intermodal units, down 5.2%.
North American rail volume for the first 35 weeks of 2023 was 22,675,055 carloads and intermodal units, down 4.1% compared with 2022.
Phillip/Chris, agree and disagree. My two cent take.
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Container traffic is a two headed story. Their was a legit inventory correction impacting ports/imports and therefore recent rail volumes as consumer went from goods to services, say eating out. The ports are spending real money to get containers from ships to rail at the docks so the import traffic will come back strong. Of course, the domestic container fail is another different story.
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Couldn’t agree more on PSR impacts on service and the consequences. Shortlines are the only real service provider in the market and at end of day that is only a portion of the market and still relies heavily on Class I delivering. Class I’s pretty much giving away business to truckers in my opinion. The even sadder aspect is shippers having to go to Feds on captive traffic failures whether UP failing to deliver unit grain/feed trains out west and or BNSF & shipper getting in pissing contest on unit coal deliveries.
Intermodal is our canary in the coal mine. All the shipper has to do is keep it on the highway all the way.
And it appears that’s what they’re doing, with intermodal down every month.
PSR working it’s magic, ta-daaaa!!!!