U.S. rail carload and intermodal volumes see annual decreases in March, reports AAR

United States rail carload and intermodal volumes saw annual declines in March, according to data issued this week by the Association of American Railroads (AAR).

Rail carloads—at 1,164,052—were down 1.2%, or 13,794 carloads, noted AAR. It added that 10 of the 20 carload commodity groups it tracks saw annual gains, including: motor vehicles & parts, up 5,476 carloads or 7.9%; petroleum & petroleum products, up 4,280 carloads or 9.4%; and coal, up 4,146 carloads or 1.2%. Commodities that saw annual declines included: grain, down 14,135 carloads or 12.4%; chemicals, down 8,482 carloads or 4.9%; and stone, clay & glass products, down 3,044 carloads or 8.0%.

When excluding coal, carloads were down 17,940 carloads, or 2.1%, in March 2023 from March 2022. And when excluding coal and grain, carloads were down 3,805 carloads, or 0.5%.

联合运输的容器和trailers-at 1159656 - fell 13.3%, or 178,555 units, annually. And combined U.S. carload and intermodal volumes, for March, at 2,323,708—are down 7.6%, or 192,349 carload and intermodal units compared to March 2022.

“Rail volumes today are being negatively influenced by broader economic trends, including slowdowns in industrial output, high inventory levels at many retailers, lower port activity and consumer spending that’s not as robust as it was during most of the last three years,” said AAR Senior Vice President John T. Gray in a statement. “To date, there are no clear economic indicators that suggest this uncertainty will not continue into the immediate future.”

Through the first three weeks of 2023, AAR reported that total U.S. carload volume—at 2,993,492—was off 0.3%, or 9,068 carloads, with intermodal units—at 3,023,563—down 10.3%, or 346,349 units.

For the week ending April 1, United States rail carloads—at 233,413—were off 0.4% annually, trailing the week ending March 25, at 236,256, and topping the week ending March 18, at 227,454. Intermodal containers and trailers—at 234,017—topped the weeks ending March 25 and March 18, at 233,432, and 226,046, respectively.

AAR President and CEO Ian Jefferies toldLMthat when looking at U.S. rail carload and intermodal volumes, current levels are about in the range, which was expected.

“The economy still has some uncertainty, with some economic indicators varied, and rail traffic reflects that,” he said. “There are some positives, with autos continuing to do well and up about 10% year-to-date. I recently read an article which said cars are moving off of lots at a quicker clip, because there is finally some inventory returning to auto dealers. Hopefully that is a sign it will continue, and I guess we will see how the consumer feels for the rest of the year when it comes to that.”

He also observed that some other commodities moved by rail are trudging along, with coal basically flat compared to a year ago, and grain is off a bit, with other agriculture-based products holding up well.

“这是一种混合体,”他说。“联运is probably not where we want it to be. Volumes are off about 10% compared to where we were last year at this time. But, at the same time, I don’t think that’s an overwhelming surprise when we look at the decrease in imports and port traffic that is going on right now. We will see how the rest of the year goes. There are people out there who think it might be a bit of a bumpy ride, but that the economy is going to do OK by the time it is all said and done. We’ll be there ready to play our part with our customers and serving communities.”