AAR reports rail volumes are down to kick off 2012

Rail volumes began 2011 with annual decreases for both carloads and intermodal, according to data from the Association of American Railroads (AAR).

For the week ending January 7, carload volume—at 274,862—was down 3.7 percent annually and ahead of the week ending December 31, which was at 245,666. It was behind the weeks ending December 24 and December 17, which hit 287,137 and 304,377, respectively.

Eastern carloads were down 13.8 percent, and out west carloads were up 2.7 percent.

Intermodal volumes—at 193,812 trailers and containers—were down 9.3 percent year-over-year. This outpaced the week ending December 31 at 181,217 and lagged the weeks ending December 24 and December 17 at 217,952 and 233,322, respectively.

Declines on both the carload and intermodal side were likely due, in part, to the Christmas and New Year’s Day holiday comparisons.

As LM has reported, shippers continue to turn to intermodal as an alternative to trucking movements, as they can see significant fuel savings in exchange for a longer transit time.

And at recent industry conferences, shippers, carriers, and logistics services providers sang intermodal’s praises to a large degree, explaining that it is becoming a legitimate alternative to straight over the road trucking, as it is more environmentally friendly, is capable of handling lanes which are considered one-day trips, and that various truckload shippers are working in tandem with railroads on developing intermodal corridors and terminals.

Of the 20 commodity groups tracked by the AAR, five were up annually. Metallic ores were up 29.2 percent, and grain was down 20 percent.

Estimated ton miles for the week at 31.0 billion were down 3.1 percent.

LM recently reported than total 2011 volumes were up on an annual basis compared to 2010.

Total carload volume in 2011 at 15,155,992 was up 2.2 percent year-over-year compared to 2010’s 14,820,128 and up 9.7 percent over 2009’s roughly 13.8 million. And intermodal volume at 11,892,431 trailers and containers was up 5.4 percent year-over-year compared to 2010’s 11,283,151 trailers and containers and up 20.4 percent compared to 2009’s roughly 9.9 million units. 2009 represented the lowest annual carload and intermodal tallies on record, according to AAR data.

“Despite the many economic headwinds throughout 2011, the railroad industry, in a sense, chugged right through it,” said Anthony B. Hatch, principal of New York-based ABH Consulting. “These numbers are not a big surprise, especially on the intermodal side.”