AAR: ‘The Worst January for Intermodal Since 2013’

Written by Carolina Worrell, Senior Editor
“Rail traffic began 2023 much the same way we ended 2022—demonstrating reasons for both optimism and caution,” said AAR Senior Vice President John T. Gray.

“Rail traffic began 2023 much the same way we ended 2022—demonstrating reasons for both optimism and caution,” said AAR Senior Vice President John T. Gray.

“It was the worst January for intermodal since 2013 with major retailers cutting back on inventories and consumer spending—especially on goods—having contracted,” Association of American Railroads (AAR) Senior Vice President John T. Gray reported on Feb. 1.

For the first month of 2023, total U.S. rail traffic was down 3.2% compared with January 2022; carloads came in 2.2% higher while intermodal dipped 8.1%, according to a Feb. 1 AAR report.

According to AAR, in January 2023, U.S. Class I railroads hauled 1,843,624 carloads and intermodal units. Twelve of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with January 2022. These included: crushed stone, sand and gravel, up 14,694 carloads or 22.6%; coal, up 11,953 carloads or 4.6%; and motor vehicles and parts, up 6,293 carloads or 13.4%. Commodities that saw declines in January 2023 from January 2022 included: chemicals, down 15,641 carloads or 11.4%; all other carloads, down 2,273 carloads or 10.3%; and lumber and wood products, down 1,939 carloads or 14.5%.

Excluding coal, carloads were up 7,874 carloads, or 1.2%, in January 2023 from January 2022. Excluding coal and grain, carloads were up 5,518 carloads, or 1.0%.

For the first month of 2023, total U.S. carload traffic was 923,696 carloads, up 2.2%, or 19,827 carloads, from the same period last year; and 919,928 intermodal units, down 8.1%, or 81,443 containers and trailers, from last year.

Total combined U.S. traffic for the first four weeks of 2023 was 1,843,624 carloads and intermodal units, a decrease of 3.2% compared to last year.

“Rail traffic began 2023 much the same way we ended 2022—demonstrating reasons for both optimism and caution,” said AAR Senior Vice President John T. Gray. “For example, this was the best January for carloads of crushed stone and sand on record, largely due to the growth in domestic natural gas production and the need for frac sand. Automotive traffic, although not yet at pre-pandemic levels, had a healthy improvement over 2022. Negatively, it was the worst January for intermodal since 2013 with major retailers cutting back on inventories and consumer spending—especially on goods—having contracted.”

Week Ending January 28, 2023

For the week ending Jan. 28 (Week 4), total U.S. rail traffic was down 3.9% compared with the same week last year; carloads were down 0.1% while intermodal dipped 7.4% compared to 2022.

Canadian and Mexican railroads saw an increase in carloads, up 9.7% and 2.7%, respectively. Canadian railroads saw a 3.5% dip in intermodal while Mexican railroads reported a 1.8% increase.

In Week 4 (ending Jan. 28, 2023), U.S. Class I railroads hauled 236,018 carloads and 237,632 containers and trailers.

According to AAR, five of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included nonmetallic minerals, up 2,068 carloads, to 29,774; petroleum and petroleum products, up 1,328 carloads, to 10,952; and motor vehicles and parts, up 836 carloads, to 13,742. Commodity groups that posted decreases compared with the same week in 2022 included chemicals, down 3,508 carloads, to 31,569; forest products, down 640 carloads, to 9,465; and coal, down 534 carloads, to 68,374.

For the first four weeks of 2023, U.S. railroads reported cumulative volume of 236,018 carloads, down 0.1% compared with the same week in 2022; and 237,632 containers and trailers, down 7.4% compared to 2022. U.S. rail traffic was 437,650 carloads and intermodal units, down 3.9% compared with the same week last year.

North American rail volume for the week ending January 28, 2023, on 12 reporting U.S., Canadian and Mexican railroads totaled 340,616 carloads, up 2.3% compared with the same week last year, and 317,248 intermodal units, down 6.2% compared with last year. Total combined weekly rail traffic in North America was 657,864 carloads and intermodal units, down 2.0$. North American rail volume for the first four weeks of 2023 was 2,551,044 carloads and intermodal units, down 0.9% compared with 2022.

Canadian railroads reported 81,541 carloads for the week, up 9.7%, and 63,013 intermodal units, down 3.5% compared with the same week in 2022. For the first four weeks of 2023, Canadian railroads reported cumulative rail traffic volume of 557,879 carloads, containers and trailers, up 7.3%.

Mexican railroads reported 23,057 carloads for the week, up 2.7% compared with the same week last year, and 16,603 intermodal units, up 1.8%. Cumulative volume on Mexican railroads for the first four weeks of 2023 was 149,541 carloads and intermodal containers and trailers, up 0.8% from the same point last year.

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