Subscribe to our free, weekly email newsletter!


AAR data points to solid growth for rail volumes

By Jeff Berman, Group News Editor
March 25, 2011

Railroad volumes were up again for both carload and intermodal for the week ending March 19, according to data from the Association of American Railroads (AAR).

Carload volume at 293,772 was up 2.3 percent compared to the same week a year ago, and was ahead of the week ending March 12 at 292,164, but below the week ending March 5 at 303,953 and the week ending February 26 at 296,252.Carload volume was down 0.5 percent in the East and up 4.2 percent out West, matching Western output percentage wise from the week ending March 12. .

Intermodal volumes were up 10.7 percent with 222,788 trailers and containers, topping the week ending March 12 at 216,828 trailers and containers and the week ending March 5 at 214,343 and behind the week ending February 26 at 220,589.

As LM has reported, volumes are continuing to display annual and sequential growth to a large degree even though the percentage levels of annual gains are decreasing, due to the fact that 2010 was being compared to 2009, which was a low point for freight transportation volumes. Rail prospects for 2011 remain very encouraging, though, as railroads have been able to maintain solid pricing power in conjunction with volume increases.

Of the 20 commodity groups tracked by the AAR, 12 were up annually. Metallic ores were up 93.5 percent, and petroleum products were up 12.9 percent. Waste and nonferrous scrap and primary forest products were down 14 percent and 10.1 percent, respectively.

Estimated ton-miles for the week were 33.2 billion for a 3.4 percent annual increase, and on a year-to-date basis, the 357.0 billion ton-miles recorded are up 6.5 percent.

ABH Consulting Principal Tony Hatch wrote in a recent research note that rail traffic is on solid footing.

“Rail traffic remains strong, and so far, the wars, earthquakes and government shutdown threats haven’t dimmed the near term outlook…..the intermediate outlook remains terrific and the rail renaissance over the longer term every bit intact,” wrote Hatch.

For related articles, please click here.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Total POLB volumes dropped 9.1 percent in August at 573,083 TEU, and POLA volumes in August were up 6.7 percent compared to August 2013 at 757,702 TEU.

Following a week in which the average price per gallon was flat, diesel prices resumed their decline, falling 1.3 cents to $3.801 per gallon, according to the Department of Energy’s Energy Information Administration.

Read how others are using Business Process Modeling to implement Microsoft Dynamics AX with reduced risk.

While diesel prices have largely been out of the spotlight in 2014, freight transportation and logistics stakeholders always need to keep a close eye on what prices are doing, as it has a significant impact on transportation budgets and forecasting.

Railroad service issues and rates, which many rail shippers deem as unreasonable, are front and center in a piece of legislation to be introduced soon by Senators Jay Rockefeller (D-WV) and John Thune (R-SD), chairman and ranking member of the Senate Committee on Commerce Science and Transportation.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA