Rail Carload Volume Hits Highest Level Since Late '08

The latest week's bulk and large-unit railcar loadings at major U.S. freight railroads were the highest since late 2008, or before the traffic plunge that followed the financial collapse that year.

The Association of American Railroads said large U.S.-owned lines - the five U.S. Class I railroads plus some regional carriers that report volume to the AAR - originated 305,905 carloads in the week ending April 2.

While that is just one week's volume, it shows that loadings of key industrial and farm commodities are running strong now that winter storm-related traffic delays have worked through the nationwide rail network. It is in line with a continued rise in overall economic activity.

Among the top rail-hauled cargoes, coal loadings that make up the largest single bulk category were up moderately through the first 13 weeks of 2011 with a 3.8 percent gain. Chemicals, which generate the second-highest carload volume for major railroads, posted a 7 percent increase while grain loads grew 3.6 percent.

A number of manufacturing products or inputs increased much faster. Finished motor vehicle and equipment loads grew 11.4 percent in the year so far, semi-finished metals and products gained 12.6 percent and metallic ore shipments have soared 58 percent. While some categories are running behind last year's pace, overall carload originations are up 5.1 percent.

Outside of carload shipments, the largest U.S. railroads are seeing an even stronger surge in intermodal loadings. In the first 13 weeks they originated 9.1 percent more container shipments than in early 2010 along with a 6.7 spike in trailer hauls on flatcars.

Combined, their intermodal originations are already up 8.7 percent from this time last year, when brisk demand quickly tightened up the market for containers and chassis. If they keep up that pace, 2011 will set a new record for intermodal volume.

Counting traffic on the Canadian and Mexican railroads that report their figures to the AAR, major lines across North America have seen carloads increase 4.2 percent through April 2, while intermodal has grown nearly twice as fast at 7.9 percent.

-- Contact John D. Boyd at jboyd@joc.com. Follow him on Twitter @jboydjoc.