Rail/Intermodal
Week 19 was a strong week for rail traffic across several commodity types. According to the Association of American Railroads, total rail traffic was up 2.3% y/y for the week ending May 11.
Carloads were down 2.6% y/y, but the decrease was due almost entirely to coal, which was down 21.9%. The only other commodity groups that showed y/y declines this week were grain, down 0.1%, and nonmetallic minerals, down 4.3%.
All other carload groups saw y/y gains in rail traffic. Commodities with the highest y/y growth include petroleum products (14.4%), “other commodities” (6.8%), farm products (excluding grain) (6.1%), and chemicals (5.3%).
Intermodal traffic also was up, consistent with its trend for almost all of 2024. For week 19, total intermodal traffic was up 7.4% y/y. This growth was driven by container shipments, which were up 8.7%, and limited by trailer shipments, down 20.8%.
YTD, total rail traffic is up 2.1% y/y with carloads down 3.7% and intermodal up 8.4%. Of the 10 carload commodity groups reported by AAR, four show positive YTD y/y growth: Chemicals, petroleum products, motor vehicles & parts, and “other.”
Other Developments
Looking beyond traffic, the Canadian Industrial Relations Board (CIRB) has decided to investigate the potential implications that a labor strike at both Canadian Class Is would have on the supply chain and to determine what “essential” commodities must continue to move in the event of a strike.
The strike by Teamsters Canada was originally set to begin as early as May 22 assuming no resolution of differences between labor and management. The CIRB assessment will push the earliest date that a strike can legally begin until June or possibly July.
In other news, President Joe Biden has appointed current Surface Transportation Board member Robert Primus to be chairman of the board following the departure of former chairman Martin Oberman.
