Posted on 08/05/2016 3:52:17 PM PDT by Jack Hydrazine
U.S. railroad traffic in July fell 7.9 percent to 2,027,768, carloads and intermodal units, compared with traffic volume in July 2015, the Association of American Railroads (AAR) announced this week.
Total carloads in the month declined 8.8 percent to 1,025,367 units, compared with the same period last year. Railroads also transported 1,002,401 containers and trailers last month, down 6.9 percent compared with a year ago.
Four of the 20 carload commodity categories tracked by AAR posted increases during the month. They included grain, up 15.3 percent or 12,641 carloads; waste and nonferrous scrap, up 25.9 percent or 3,400 carloads; and miscellaneous carloads, up 12.9 percent or 2,880 carloads.
Carload commodity categories that logged decreases included coal, down 17.5 percent or 70,479 carloads; petroleum and petroleum products, down 22 percent or 11,926 carloads; and crushed stone, gravel and sand, down 11.6 percent or 11,765 carloads.
Excluding coal, carloads were down 4 percent in July versus last year.
During the first 30 weeks of 2016, U.S. carload traffic volume dropped 11.9 percent to 7,320,583 units, while the number of intermodal containers and trailers slipped 2.8 percent to 7,715,404 units.
For the first seven months of 2016, total U.S. rail traffic volume clocked in at 15,035,987 carloads and intermodal units, a 7.4 percent decline from the same point last year.
"Rail traffic continues to reflect the uncertainty rail customers face in a challenging economic environment," said John Gray, AAR senior vice president of policy and economics.
Gray noted that intermodal traffic remained off from 2015's record traffic level, while carloads showed a small improvement in coal and a bit of improvement in grain.
"For the present, railroads are focused on providing safe and efficient service to their customers, while watching to see if the increase in consumer spending in the second quarter will lead to additional gross domestic product growth in the second half of the year," said Gray.
I hope this affects Buffet Boy
Ping......
“I hope this affects Buffet Boy”
I do to. Hard to believe he still supports Obama and Hillary.
FWIW, the Baltic Dry Index has doubled since February.
Simple reason = lower fuel prices.
The company I work for has rail vs. truck options,
does a monthly cost analysis,
and selects the most cost effective method to ship production.
Why do trucks carry “shipments” and ships carry “cargo”?
Live near a CSX Norfolk Southern line here in the Philly Burbs
Line parallels a nice trail in a state park
Wife and I walk it after dinner majority of nights
Frequently wave to the engineers and get a horn blast in response
One train the whole last month
I used to hear them early in the AM while eating breakfast
Nothing lately
It’s verbiage that has its roots in antiquity.
Freight Rail Traffic Plunges: Haunting Pictures of Transportation Recession
http://wolfstreet.com/2016/05/04/freight-rail-traffic-plunges-aar-april-report-photos-idled-engines-transportation-recession/
4MAY2016
Total US rail traffic in April plunged 11.8% from a year ago, the Association of American Railroads reported today. Carloads of bulk commodities such as coal, oil, grains, and chemicals plummeted 16.1% to 944,339 units.
The coal industry is in a horrible condition and cannot compete with US natural gas at current prices. Coal-fired power plants are being retired. Demand for steam coal is plunging. Major US coal miners – even the largest one – are now bankrupt. So in April, carloads of coal plummeted 40% from the already beaten-down levels a year ago.
Only five of the 20 commodity categories saw gains. Of the decliners, coal was the biggest. But petroleum products also plunged 25%, and grain mill products dropped 7%. Even without coal, carloads were down 3% year-over-year.
But it’s not just coal. In April, loads of containers and trailers fell 7.5% year-over-year to 1,028,460 intermodal units. They transport goods for retailers and wholesalers. They haul parts, components, and assemblies for manufacturers. They haul imported goods from ports and borders to different destinations across the country, and they haul goods to be exported to the ports and borders. They’re a measure of the real economy.
For the first 17 weeks of the year, total rail freight fell 7.8% from the same period a year ago, with carload traffic down 14.3% and intermodal down 0.8%.
It didn’t get any better at the end of April: for the week ending April 30, carloads plunged 14.1% and intermodal traffic dropped 8.6% from the same week a year ago.
The impact on railroads is now very visible – and not just in the numbers on their income statements.
Here’s how Union Pacific is dealing with this issue, via Google Earth, on May 3: 292 engines idled on a siding west of Benson, Arizona, along I-10, for a stretch of nearly 4 miles. Note how the line of locomotives curves and fades into the left edge of the photo – an once majestic and haunting sight, all these powerful machines idled on a track in the Arizona desert (click images to enlarge):
(see pics at link)
The economy is sick
I suggest that part of the increase in rail traffic was higher cost of truck-borne freight due to expensive fuel.
That is, what its showing may be some displacement of transport modes.
Diesel is cheaper lately so that may be one reason rail is off.
One is little. One is big. Besides, if a cop asked a trucker, "What's your cargo?" his answer would be something like "0-60 in 4.4 seconds".
This is very interesting, thanks.
Oh wait, we don't...BS numbers to try to get the witch elected...
one of the few numbers they can't mess with, the stock is either rolling, or it's not...
Noted. I see if here with the local regionals and short lines..
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