Rail/Intermodal
Rail traffic in week 22 was generally positive, with most commodity groups showing y/y gains. According to the Association of American Railroads, total traffic was up 2.7% y/y for the week ended June 1.
Carloads were down 2.6% y/y this week, up from -4.2% last week. The primary reason for the decline continues to be coal, however, the effect of coal is smaller now than it has been in recent weeks. For week 22, coal carloads were down 17.5%, up from its trough of -27.6% back in April, and has now been growing for five consecutive weeks.
Besides coal, most carload commodities had a favorable week. This week, 12 out of the 20 commodities reported by the AAR posted y/y growth.
Intermodal had another strong week, marking the 21st week of y/y growth in 2024. In week 22, intermodal traffic grew 8.2%, exceeding its four-week average of 6.4%. This growth continues to be driven by container traffic, which was up 7.7% this week and dragged down by trailers, which are down 21.3% y/y.
YTD, total rail traffic is up 2.0%, with carloads down 3.6% and intermodal up 8.0%. Of the 10 commodity carload groups AAR reports, five show positive YTD y/y growth – chemicals, petroleum products, motor vehicles & parts, grain, and “other.”
