For March, Carloads, Intermodal Volume Continue Decline

U.S. rail traffic in March 2023 dropped from the same month last year—down 7.6% or 192,349 carloads and intermodal units, the Association of American Railroads (AAR) reported April 5. This follows February’s 5.2% drop from the prior-year period.

According to AAR, U.S. Class I railroads in March 2023 hauled 2,323,708 carloads and intermodal units, comprising 1,164,052 carloads (down 1.2%) and 1,159,656 containers and trailers (down 13.3%).

“Rail volumes today are being negatively influenced by broader economic trends, including slowdowns in industrial output, high inventory levels at many retailers, lower port activity and consumer spending that’s not as robust as it was during most of the last three years,” said AAR Senior Vice President John T. Gray. “To date, there are no clear economic indicators that suggest this uncertainty will not continue into the immediate future.”

In March 2023, 10 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with March 2022. These included: motor vehicles & parts, up 5,476 carloads or 7.9%; petroleum & petroleum products, up 4,280 carloads or 9.4%; and coal, up 4,146 carloads or 1.2%. Commodities that saw declines in March 2023 from March 2022 included: grain, down 14,135 carloads or 12.4%; chemicals, down 8,482 carloads or 4.9%; and stone, clay & glass products, down 3,044 carloads or 8.0%.

In comparison, March 2022 U.S. rail traffic was a “mixed bag” with it being the “best month ever” for carloads of chemicals, but carloads of grain, petroleum and paper were down. Combined U.S. carload and intermodal originations in March 2022 were 2,507,684, dipping 3%, or 78,714 carloads and intermodal units, from March 2021.

Excluding coal, carloads were down 17,940 carloads, or 2.1%, in March 2023 from March 2022. Excluding coal and grain, carloads were down 3,805 carloads, or 0.5%.

Total U.S. carload traffic for the first three months of 2023 was 2,993,492 carloads, down 0.3%, or 9,068 carloads, from the same period last year; and 3,023,563 intermodal units, down 10.3%, or 346,349 containers and trailers, from last year.

Total combined U.S. traffic for the first 13 weeks of 2023 was 6,017,055 carloads and intermodal units, a decrease of 5.6% compared to last year.

Week Ending April 1, 2023

For the week ending April 1, 2023, U.S. Class I railroads hauled 467,430 carloads and intermodal units, down 7.4% compared with the same week last year. Total carloads came in at 233,413, down 0.4%, while U.S. weekly intermodal volume was 234,017 containers and trailers, down 13.4% compared with 2022.

Four of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included metallic ores and metals, up 2,353 carloads, to 23,440; petroleum and petroleum products, up 1,566 carloads, to 10,127; and motor vehicles and parts, up 1,117 carloads, to 14,874. Commodity groups that posted decreases compared with the same week in 2022 included chemicals, down 1,788 carloads, to 33,347; grain, down 1,657 carloads, to 20,628; and nonmetallic minerals, down 1,331 carloads, to 30,702.

North American rail volume for the week ending April 1, 2023, on 12 reporting U.S., Canadian and Mexican railroads totaled 341,360 carloads, up 1.8% compared with the same week last year, and 308,322 intermodal units, down 14.0% compared with last year. Total combined weekly rail traffic in North America was 649,682 carloads and intermodal units, down 6.3%. North American rail volume for the first 13 weeks of 2023 was 8,314,939 carloads and intermodal units, down 3.6% compared with 2022.

Canadian railroads reported 85,070 carloads for the week, up 5.4%, and 58,855 intermodal units, down 19.2% compared with the same week in 2022. For the first 13 weeks of 2023, Canadian railroads reported cumulative rail traffic volume of 1,817,017 carloads, containers and trailers, up 2.0%.

Mexican railroads reported 22,877 carloads for the week, up 13.5% compared with the same week last year, and 15,450 intermodal units, up 1.5%. Cumulative volume on Mexican railroads for the first 13 weeks of 2023 was 480,867 carloads and intermodal containers and trailers, up 1.4% from the same point last year.