AAR reports decent carload and intermodal gains for June

United States Class I carloads were up 43,310 carloads–or 3.6 percent annually–at 1,177,655 in June, and intermodal containers and trailers were up 67,967 units–or 6.7 percent–compared to June 2013 at 1,077,385.

By ·

Carload and intermodal volumes for the month of June both showed annual gains, according to data recently issued by the Association of American Railroads (AAR).

United States Class I carloads were up 43,310 carloads–or 3.6 percent annually–at 1,177,655 in June, with monthly carload growth cumulatively averaging 4.9 percent from March through June, which the AAR said is the highest average for any four-month stretch going back to December 2010 through March 2011. What’s more, the AAR said that total carloads came in at an average of 294,414 for the month, which stands as the highest weekly average for June since 2008.

“Carload volume seems to be doing just fine,” said Brooks Bentz, senior partner for Accenture’s Supply Chain practice, in LM’s June Railroad and Intermodal Roundtable. “Growth seems to be present in a number of key areas, such as automotive and the above-mentioned commodities relating to energy production. Also, a good amount of air traffic is shifting to ocean, so over-the-road freight will gradually shift back to carload in certain markets to offset increasing costs of highway transport and the delay time incurred with congestion in major markets. It just won’t be as fast a shift.”

On the intermodal side, the AAR said that total containers and trailers were up 67,967 units–or 6.7 percent–compared to June 2013 at 1,077,385.  The weekly intermodal average for June at 269,346 units stands as the single best month ever since AAR began collecting this data, and for the second quarter the AAR said that intermodal volumes were up 8 percent or 253,921 units.

As for potential intermodal growth for the remainder of the year, the AAR said it is likely, considering that intermodal volumes usually peak in the fall months, and with records already being broken in the first half of the year, the potential for more to be broken in the second half is likely. And it noted that over the first six months of 2014, intermodal containers represented 88.4 percent of total intermodal volumes, which stands as the highest percentage for containers ever recorded.

“All in all, June was another good month for rail traffic,” said AAR Senior Vice President John T. Gray in a statement.  “The fact that most categories of rail traffic were up in June, and that intermodal set a new volume record, supports the view that the economy is rebounding at a decent pace.  Railroads will continue to do their part in ensuring this continues.”

Of the 20 commodity categories tracked by the AAR, volumes for 17 of them were up annually, matching May’s output. Crushed stone, sand, and gravel were up 12,217 carloads or 14.1 percent, and grain was up 10,394 carloads or 16.5 percent. And each of the ten carload commodity groups tracked by the AAR saw annual gains, paced by petroleum and petroleum products and grain, which were up 18.5 percent and 12.9 percent, respectively. 

Through the first 26 weeks of 2014, the AAR said U.S. Class I carloads were up 3.2 percent annually at 7,448,294, and intermodal was up 5.9 percent at 6,642,440 containers and trailers.

For the week ending June 28, U.S. carloads were up 6.3 percent at 298,457, and intermodal was 6 percent at 264,766 units.

About the Author

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. Contact Jeff Berman

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!

Article Topics

AAR · Carload · Intermodal · All Topics
Latest Whitepaper
Case Study: LEAN Yields Big Results
Every day, companies across a wide range of industries use LEAN in their supply chains, warehouses and distribution centers, finance departments, and customer service centers, among other areas. LEAN practices improve safety, quality, and productivity by extracting cost and waste from all facets of an operation – from the procurement of raw materials to the shipment of finished goods.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...