The Association of American Railroads (AAR) has reported that U.S. rail traffic for the month of December 2016 when compared with December 2015 was up 6.9 percent or 128,362 carloads and intermodal units. Total U.S. rail traffic for the month was 1,985,512 carloads and intermodal units.
December 2016 U.S. carload originations totaled 973,642, up 2.8 percent, or 26,147 carloads, compared to December 2015. Excluding coal, carloads for the month were up 2 percent or 12,787 carloads compared to December 2015.
Intermodal traffic for December 2016 reached a total of 1,011,870 containers and trailers, up 102,215 units, or 11.2 percent, compared to the prior December.
In December, 13 of the 20 commodity categories tracked by the AAR each month saw increases compared to December 2015. Commodities showing the largest increases included grain, up 10.5 percent, or 8,663 carloads; coal, up 4.2 percent, or 13,360 carloads; and chemicals, up 3.9 percent, or 4,599 carloads.
Petroleum and petroleum products showed the largest decrease in the commodity groups, with a drop of 17.4 percent, or 8,568 carloads, and miscellaneous carloads were down 5.9 percent, or 1,265 carloads. Crushed stone, gravel and sand declined by 4.1 percent, or 2,889 carloads.
For the year 2016, total U.S. rail traffic dropped 5 percent, or 1,389,323 units compared to 2015. Total rail traffic for 2016 was 26,587,351 carloads and intermodal units. U.S. carload traffic for 2016 was 13,096,860 carloads, a decrease of 8.2 percent, or 1,169,152 carloads. Total intermodal containers and trailers for 2016 were 13,490,491 units, down 1.6 percent or 220,171 units when compared to 2015.
“Last year was challenging for freight railroads,” stated AAR Senior Vice President of Policy and Economics John T. Gray. “Rail carloads were down for the second consecutive year, due mainly to a weak manufacturing economy and turmoil in energy markets, while intermodal failed to set its fourth straight annual record. That said, there are signs that the economy may be gradually returning to a period of growth.”
For the week ending December 31, 2016, an increase of 7.7 percent was reported in total U.S. rail traffic compared with the same week in 2015. Carloads and intermodal units totaled 425,998.
For the week, there were 215,967 carloads, up 4 percent compared with the same week in 2015, while U.S. weekly intermodal volume was 210,031 containers and trailers, up by 11.8 percent compared to 2015.
Eight of the 10 carload commodity groups that are tracked by the AAR posted increases compared with the same week in 2015. Motor vehicles and parts had the highest increase, up 29.9 percent, with a total 11,312 carloads, followed by metallic ores and metals, up 11.6 percent, with a total of 20,838 carloads.
Petroleum and petroleum products reported the largest decrease for the week compared to the same time period in 2015, with a total of 9,635 carloads, a drop of 21 percent. Nonmetallic minerals were down by 1.6 percent to 23,045 carloads.
North American rail volume for the week ending December 31, 2016, on 13 reporting U.S., Canadian and Mexican railroads totaled 559,414 carloads and intermodal units, up 7.4 percent compared with the same week last year. For the first 52 weeks of 2016, North American rail volume was 34,820,886 carloads and intermodal units, down 4.5 percent compared with 2015.
Edward R. Hamberger, president and CEO of the AAR, stated, “We remain focused on providing the best possible rail network for our customers and all Americans, and as a result, the freight rail industry will advocate for a simpler and fairer tax code to enhance U.S economic development, promote growth and reduce debt. Freight railroads will also push for a sustainable funding source that provides for aggressive investment in public infrastructure.”
“The freight rail industry is capital intensive and must spend massive amounts of its money to maintain infrastructure and equipment,” added Hamberger, addressing the industry’s concern over a series of proposed regulations before the Surface Transportation Board (STB). “Current STB proposals would inhibit railroads' ability to continually invest the amount of capital needed to make the 140,000-mile network work for Americans. The Board should be cognizant of the economic impact our industry and promote regulations that enhance job growth and development.”