Railroad shipping: AAR says February volumes are mixed

Jeff Berman, Senior Editor -- Logistics Management, 3/7/2008

WASHINGTON—As was the case a year ago, railroad freight volume totals were mixed in February, with carload freight up and intermodal volume down, according to data released today by the Association of American Railroads (AAR).

The AAR said that U.S. railroads originated 1,297,763 carloads of freight in February, which was up 2.7 percent—or 34,347 carloads—from February 2007. Meanwhile, intermodal volume came in at 893,951 intermodal units, representing a 3.4 percent decrease—or 31,007 trailers and containers.

The uneven performance over the first two months of the year can be attributed to a weak economy, said AAR Director of Editorial Services Tom White in an interview. And he added that ongoing economic difficulties have led to sustained declined for certain commodities like lumber & wood products, which were down 19.3 percent—or 3,608 carloads—in February due to the ongoing downward housing market.

Also feeling the prolonged economic pinch are motor vehicles & equipment loadings and crushed stone, sand and gravel, which were down 4.0 percent and 5.7 percent, respectively, for the first nine weeks of 2008.

Grain and coal both had strong showings in February, but White explained that this may be due to factors that are not directly tied to economic indicators.

“Coal is strong because of the need for electricity and is perhaps less susceptible to the other changes [for commodities] that you often see,” said White.

The AAR reported that for the month, coal loadings were up 31,178 carloads—or 5.7 percent—to 576,012 carloads, and grain was up 20,051 carloads—or 24.5 percent—to 101,892 carloads. Of the 19 commodity groups tracked by the AAR, 10 saw yearly increases, noted the AAR.

Over the first two months of 2008, the AAR said total U.S. rail carloads were up 48,223 carloads—or 1.7 percent—to 2,864,484 carloads. And intermodal traffic, which is not included in carload figures, was down 68,239 trailers and containers—or 3.4 percent—to 1,962,691. Total volume for the first nine weeks of 2008 was estimated at 296.1 billion by the AAR, which was ahead of last year’s pace by 2.8 percent.

On a year over year comparison basis, White said it can be hard to compare totals for this time period, due to tough weather conditions, because one year may be far more severe than another.