U.S. Freight Rail Traffic Down for Second Year in a Row

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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. rail carload traffic in 2016 was down for the second year in a row as freight railroads endured a weak manufacturing economy and turmoil in the energy markets, the Association of American Railroads (AAR) said Wednesday.

Rail traffic in 2016 was down 5%, according to the AAR. Total volume was 26,587,351 carloads, intermodal containers and trailers in 2016. This included 13,096,860 carloads, down 8.2%, and 13,490,491 intermodal containers and trailers, down 1.6%.

"Last year was challenging for freight railroads," said AAR Senior Vice President of Policy and Economics John T. Gray. For related information, see December 8, 2016, article -- U.S. Crude-By-Rail Shipments Continue to Sag.

"That said, there are signs that the economy may be gradually returning to a period of growth," Gray continued.

The Institute for Supply Management (ISM) (Tempe, Arizona) last month released the results of a survey in which manufacturing purchasing and supply executives indicated they expect to see growth in 2017. For related information, see December 9, 2017, article - ISM: 0.2% U.S. Manufacturing Capex Growth Expected in 2017, and November 17, 2017, article - Some Rail Operators See Ray of Hope in Auto Shipments.

Also, freight railroads have outlined a series of policy recommendations "designed to help preserve and enhance the industry's positive impact on the nation's economy, while allowing for continued safe, efficient and reliable freight transportation service," the AAR said.

For December, combined U.S. carload and intermodal originations were 1,985,512, up 6.9% from December 2015. Gains were seen in shipments of grain, chemicals and coal. Items that saw declines included petroleum and petroleum products; crushed stone, gravel and sand; and miscellaneous carloads.

Industrial Info is tracking 33 active U.S. rail-related projects worth $2.95 billion that are expected to kick off construction this year.

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