Rail traffic up for week ending March 5, according to AAR

By Jeff Berman, Group News Editor
March 11, 2011 - LM Editorial

The Association of American Railroads (AAR) reported that volumes for the week ending March were up annually.

Carload volume at 300,953 was up 5.5 percent year-over-year and was ahead of the week ending February 26 at 296,252 and the week ending February 19 at 296,980. Carload volume was up 0.3 percent in the East and up 9.2 percent out West.

Intermodal volumes were up 1 percent year-over-year, with trailers and containers hitting 214,343, which was behind the weeks ending February 26 and February 19 at 220,589 and 233,993, respectively.

As LM has reported, railroad carload and intermodal volumes continue to show mostly decent annual and sequential gains, although the annual comparisons are abating because comparisons from 2011 to 2010 will not be as significant as those from 2010 to 2009, which was when freight volume declines were steep. And prospects for 2011 look very encouraging, especially in light of earnings results from multiple Class I carriers, which pointed to continued pricing and volume increases.

The AAR said that 14 of the 20 commodity groups the AAR tracks saw annual growth for the week ending March 5, with metallic ores up 105.2 percent, motor vehicles and equipment up 20.8 percent, and petroleum products up 18.6 percent.

Estimated ton-miles for the week were 34.0 billion for a 6.9 percent annual increase, and on a year-to-date basis, the 290.3 billion ton-miles recorded are up 7.1 percent.

Morgan Stanley analyst William Greene wrote in a research note that his firm’s historical seasonality-driven volume forecasts imply that mid single-digit volume growth for 2011 remains likely for most rails with upside toward the high single-digits. And he added that
January 2011 industry employment levels, in conjunction with volume trends, point to continued strength in incremental margins, with firmer truck pricing being supportive of rail price growth.

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

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

About the Author

Jeff Berman, 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.

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