March 2014 carload and intermodal volumes post annual gains, reports AAR

Intermodal—at 1,025,907 containers and trailers—were up 9.9 percent, or 92,661 units, annually, and carloads—at 1,156,697—were up 3.5 percent, or 36,628 carloads, compared to March 2013.

By ·

March carload and intermodal volumes both saw annual gains, according to data released by the Association of American Railroads (AAR) this week.

Carloads for the month—at 1,156,697—were up 3.5 percent, or 36,628 carloads, compared to March 2013.

Intermodal—at 1,025,907 containers and trailers—were up 9.9 percent, or 92,661 units, annually and showed consecutive annual monthly increases for the 52nd consecutive month. And the weekly average for intermodal in March at 256,477 now stands as the highest weekly average for the month of March ever recorded and is the fourth highest volume month in history. 

Of the 20 commodities tracked by the AAR, 11 were up annually in March. Grain was up 14,272 carloads (21.2 percent), and coal was up 9,649 carloads (2.2 percent). Iron and steel scrap was down 2,602 carloads (13.7 percent), and metallic ores were off 1,345 carloads (7.1 percent).  The AAR said that excluding coal and grain, carloads were up 14,707 carloads, or 2.9 percent, in March annually.

“U.S. rail traffic rebounded strongly in March 2014 following a sub-par February.  Grain led the way, as railroads are working hard to move the biggest grain harvest in history,” said AAR Senior Vice President John T. Gray in a statement. “In addition, coal carloads rose in March, something that’s happened just one other time in the past two years.  March also demonstrated that we have every reason to be optimistic that 2014 will break 2013’s intermodal volume record.”

Robert W. Baird and Co. analyst Ben Hartford wrote in a research note that solid intermodal growth could indicate pent-up demand, unwinding backlogs.

“Solid intermodal growth could indicate that backlogs that developed as a result of the severe winter weather are unwinding and networks are becoming more fluid, which would be consistent with our channel checks,” wrote Hartford. “While we heard some anecdotes of intermodal volumes that shifted to truck, the solid growth in March could also be indicative of pent-up intermodal demand.”

FTR Senior Consultant Larry Gross told LM that carload performance in March was pretty decent, with some of the growth coming from a catch-up of the harsh winter weather.

As for the impressive intermodal gains in March, Gross said that is due in part to the timing of the Lunar New Year, which came relatively early at the end of January with factories in China shut down for three weeks, one week before the holiday and two weeks after.

“It takes a while for the effect of that to reach our shores, because of the timeline involved in transit,” he said. “There typically is an effect overall for a period of 7 or 8 weeks after the Lunar New Year, with the week after being the highest week because you seeing the stuff moving that was shipped just prior to when everything gets shut down in China, but it takes at least 3 weeks to get here and impacts annual comparisons for that timeframe.”

For the week ending March 29, U.S. railroads originated 301,317 carloads for a 7.2 percent annual gain, and intermodal was up 13.5 percent at 265,188.

On a year-to-date basis for the first 13 weeks of 2014, U.S. carloads at 3,602,739 are up 0.9 percent compared to the corresponding period a year ago, and intermodal is up 3.8 percent at 3,202,999 containers and trailers.


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 · Intermodal · Railroad Shipping · All Topics
Latest Whitepaper
Improving Packaging: The Cost of Shipping Air is Going Up
Retailers and manufacturers that insist on using inefficient and sloppy packaging methods—oversized boxes, inefficient packaging, poorly constructed palletized contents—are paying for their mistakes in sharply higher freight rates. Pitt Ohio White Paper, Logistics White Paper, Dimensional Packaging
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo