Trade tensions as rail freight lags economy

Written by Railway Age Staff
Trump rail freight

Photo: Wikipedia/Gage Skidmore

Is the Trump Administration’s widening trade war hurting rail freight traffic at home?

Amid mounting business uncertainty, carload volume among the Class I railroads isn’t quite keeping pace with an economy that is humming along.

The Association of American Railroads said U.S. rail traffic for the week ending June 16 was 558,098 carloads and intermodal units, up 4.1% compared with the same week a year ago.

But commodity traffic totaled 269,748 carloads, up 1.9%, while intermodal volume of 288,350 containers and trailers was ahead by 6.3% compared to 2017.

The Commerce Department revised first-quarter GDP downward from 2.3% to 2.2%, but estimates April-June growth at 3%.

From Railway Age magazine: Steep tariffs harm rails, wallets. Debates rage over the wisdom of steeper tariffs on U.S. imports and/or withdrawing from global trade pacts in hopes of protecting domestic industry and jobs. History teaches such actions pose economic and national security risks.

Seven of the 10 carload commodity groups tracked by AAR posted gains, highlighted by petroleum and petroleum products, 20.6%; nonmetallic minerals, 4.8%, and grain, 6.5%.

Declining were coal, 1.6%; miscellaneous carloads, 12%, and motor vehicles and parts, 1.7%.

Through the first 24 weeks of 2018, U.S. railroads reported cumulative volume of 6,208,034 carloads, up 1.3%, and 6,571,354 intermodal units, up 6% on-year. Total combined traffic was 12,779,388 carloads and intermodal units, an increase of 3.6%.

North American rail volume for the week on 12 reporting U.S., Canadian and Mexican railroads totaled 376,555 carloads, up 2.4%, and 375,718 intermodal units, up 4.9%. Total combined weekly rail traffic in North America was 752,273 carloads and intermodal units, up 3.7% percent. North American rail volume for the first 24 weeks of 2018 was 17,225,919 carloads and intermodal units, up 3.2%.

Canadian railroads reported 84,254 carloads for the week, up 7%, and 69,872 intermodal units, up 3.1%. For the first 24 weeks of 2018, cumulative volume of 3,533,133 carloads, containers and trailers was ahead by 3.5%.

Mexican railroads reported 22,553 carloads for the week and 17,496 intermodal units. Cumulative volume on Mexican railroads for the first 24 weeks of 2018 was 913,398 carloads and intermodal containers and trailers.

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