U.S. rail carload and intermodal volumes see August declines, reports AAR

United States August rail carload and intermodal volumes saw annual declines in August, according to data issued this week by the Association of American Railroads (AAR).

Rail carloads, at 1,133,375, were down 2.0% annually, or 23,323 carloads. AAR said that nine of the 20 carload commodity groups it tracks saw annual gains, including: motor vehicles & parts, up 9,374 carloads or 13.6%; petroleum &petroleum products, up 5,567 carloads or 12.9%; and primary metal products, up 1,792 carloads or 4.6%. Commodities posting annual declines included: grain, down 22,064 carloads or 22.9%; coal, down 9,754 carloads or 2.8%; and pulp & paper products, down 2,334 carloads or 10.2%.

When excluding coal, AAR said carloads were down 13,569 carloads, or 1.7%, in August 2023 from August2022. And when excluding coal and grain, carloads were up 8,495 carloads, or 1.2%.

Intermodal containers and trailers, at 1,239,290 units, fell 6.3%, or 83,717 units, annually.

AAR said that combined U.S. carload and intermodal originations in August, at 2,372,665, were down 4.3%, or 107,040 carloads and intermodal units from August 2022. And on a year-to-date basis through the first eight months of 2023, its said U.S. rail carloads are flat, at 7,852,770, with a slight 3,625-carload gain, and intermodal containers and trailers are down 9.2%, or 838,829 units.

“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.”

AAR said that average carloads per week, at 226,675, were down 2.0% annually, and intermodal units, at 247,858, were off 6.3% annually.

For the week of September 2, U.S. rail carloads, at 231,113, were off 1.6% annually, and intermodal units, at 245,738, fell 8.7% annually.