Rail/Intermodal
Total rail traffic was up 2.8% y/y for the week ended June 15, according to Association of American Railroads data.
Carloads were down 1.1% y/y in the latest week –the strongest y/y comparison since late March. This improved carload number can be attributed primarily to sustained w/w increases in coal traffic as well as a particularly strong week for chemicals, grain, and petroleum, up 10.0%, 16.6%, and 9.9% respectively.
Intermodal had another strong week, up 6.7% y/y, but down from the four-week average of 7.3%. Growth continues to be driven by container traffic, up 8.1% y/y and offset somewhat by the much smaller category of trailer traffic, down 22.8% y/y.
Year to date, total rail traffic is up 2.0%, with carloads down 3.6% and intermodal up 8.0%. Of the 10 commodity carload groups reported by AAR, four show positive YTD y/y growth, unchanged from last week. These commodities include petroleum products (8.0%), chemicals (4.0%), motor vehicles & parts (2.4%), and grain (1.4%).
Other Developments
Beyond rail traffic, BNSF announced plans this week to develop an integrated logistics hub near Phoenix. This 4,321-acre facility will consist of intermodal facilities and a logistics park, all connected by direct rail service.
The BNSF facility will be built on the railroad’s existing network. As of now, there is no published timeline for construction of the facility or when the facility will be operational.
In other news, a federal judge ruled that BNSF must pay nearly $400 million to the Swinomish Tribe in Washington for supposedly violating their agreement to ship no more than 25 cars per day through the Swinomish Reservation. It is likely that BNSF will appeal the judge’s decision, but it has not yet made an official statement.
