The Association of American Railroads (AAR) has reported that U.S. rail traffic saw a 3.8% overall rise in June 2024, driven by an 8.7% increase in intermodal units, despite a 1.7% decline in carloads. The AAR’s latest data for the week ending June 29, 2024, revealed that U.S. railroads originated 885,864 carloads, representing a 1.7% decrease compared to the same month in 2023. However, intermodal shipments saw a significant surge, with 1,074,646 containers and trailers originating, marking an 8.7% increase from June 2023.
The AAR’s monthly tracking showed that 11 out of 20 carload commodity categories experienced growth in June 2024. Notably, grain shipments saw a 17.5% increase, chemicals rose by 6.7%, and petroleum & petroleum products climbed by 14%. Conversely, declines were observed in commodities like coal (down 10.4%), crushed stone, sand & gravel (down 11.2%), and other carloads (down 16.9%).
AAR Chief Economist Rand Ghayad highlighted the contrasting trends in the rail traffic data, stating that while coal shipments continued to decline, pulling total carloads below 2023 levels, this was offset by growth in other sectors, including chemicals, motor vehicles, and intermodal shipments. Ghayad emphasized that freight rail serves as a reflection of the broader economy, and the increase in motor vehicles and intermodal traffic indicates resilient consumer spending across various industries.
Excluding coal, carload traffic in June 2024 increased by 1.1%, compared to June 2023. When excluding both coal and grain, the carload traffic saw a marginal rise of 0.0%. For the first half of 2024, total U.S. carload traffic reached 5,569,374 carloads, a decline of 4.5% compared to the same period in the previous year. Conversely, intermodal traffic saw an 8.7% increase, with 6,643,110 containers and trailers, an addition of 529,349 units over last year. Combined U.S. traffic for the initial 26 weeks of 2024 amounted to 12,212,484 carloads and intermodal units, marking a 2.2% increase from the previous year.
For the week ending June 29, 2024, total U.S. rail traffic was 491,899 carloads and intermodal units, a 3.9% increase from the same week in the previous year. Carloads alone were 224,775, up 1.1%, while intermodal volume reached 267,124 containers and trailers, a 6.3% increase. Six out of ten carload commodity groups saw increases compared to the same week in 2023. These included grain (up 2,451 carloads to 17,968), petroleum and petroleum products (up 1,837 carloads to 10,620), and chemicals (up 1,787 carloads to 34,337). Declines were noted in nonmetallic minerals (down 2,836 carloads to 31,599), coal (down 1,509 carloads to 57,796), and miscellaneous carloads (down 494 carloads to 9,244).
North American rail volume for the week ending June 29, 2024, which includes U.S., Canadian, and Mexican railroads, totaled 334,500 carloads (up 2.1 percent) and 347,441 intermodal units (up 4.6 percent). The combined weekly rail traffic was 681,941 carloads and intermodal units, a 3.3 percent increase. Cumulative North American rail volume for the first 26 weeks of 2024 was 17,167,693 carloads and intermodal units, up 2.1 percent from 2023. Canadian railroads reported 93,710 carloads for the week, a 7.8 percent increase, and 66,742 intermodal units, a 1.0 percent decrease compared to the same week in 2023. For the first 26 weeks of 2024, cumulative rail traffic volume in Canada was 4,188,444 carloads, containers, and trailers, up 0.9 percent. Mexican railroads saw 16,015 carloads for the week, a 12.1 percent decrease, and 13,575 intermodal units, a 0.7 percent decrease. Cumulative volume for the first 26 weeks of 2024 on Mexican railroads was 766,765 carloads and intermodal containers and trailers, up 6.3 percent from the previous year.
The AAR will introduce a new free monthly product on July 8th, providing quick insights from their policy and economics team about current rail traffic data and future trends. To be among the first to access the Rail Industry Overview, you can sign up next week.
