U.S. rail carload and intermodal shipments are up in May, says AAR

Both United States rail carloads and intermodal volumes posted annual gains in May, according to data issued this week by the Association of American Railroads (AAR).

Rail carloads––at 1,286,075––were up 8.4 percent, or 99,290 carloads, annually. And the AAR said that 11 of the 20 commodity categories it tracks saw annual gains, including: coal, up 19.6 percent or 64,059 carloads; grain, up 24.5 percent or 22,963 carloads; and crushed stone, sand and gravel, up 15.3 percent or 17,416 carloads. Commodities that saw declines in May 2017 from May 2016 included: petroleum and petroleum products, down 16.5 percent or 9,365 carloads; primary forest products, down 12.1 percent or 742 carloads; and motor vehicles and parts, down 3.8 percent or 3,419 carloads.

What’s more average number of U.S. carloads per week saw an 8.4 percent annual gain to 257,215, marking the highest average per month going back to February’s 261,010.

“All things considered, May was a good month for rail traffic,” said AAR Senior Vice President John T. Gray in a statement   “Thirteen of the 20 commodity categories we track had higher carloads in May 2017 than in May 2016, including the four biggest categories - coal, chemicals, crushed stone and sand, and grain. Excluding coal, carloads in May were up 4.1%, their biggest monthly increase in more than two years.”

Intermodal containers and trailers at 1,339,417 were up 4.6 percent annually represent the highest volume month for 2017 to date, AAR said. The average intermodal volume per week was up 4.6 percent at 267,883, and AAR said that it marks the second best weekly average for May ever after 2015.

Through the first five months of 2017, U.S. rail carloads are up 6.8 percent, or 358,904 carloads, at 5,633,477, and intermodal is up 2.3 percent, or 130,090 units, at 5,779,098, which is the highest year-to-date tally through May for intermodal, topping 2015.

While the numbers point to growth, Larry Gross, senior partner at FTR, explained the LM Railroad/Intermodal Roundtable that while volume is substantially higher than a year ago, these year-over-year comparisons don’t provide a full, timely view.

“The current trend for carloads in general is negative,” he said. “Setting aside the usual seasonal dip around the holidays, total carloads have been trending flat to down since the middle of the fourth quarter of 2016. However, the picture is not all bad. I’m seeing nice sequential growth in construction-related commodities, including stone, sand and gravel and, importantly, lumber and wood products. The latter recently reached the highest level since early 2016, providing a tentative indication of improvement in new housing construction.”