Short Line Traffic Rises for Week

North American short lines got some good news for a change in the latest reading of traffic counts, as an industry index showed the highest shipment counts in a month.

Loadings of all bulk railcars and intermodal trailers or containers by 340 short lines reached 89,750 units in the week ending July 18, said the RMI RailConnect index. That’s the strongest volume RMI has reported since June 20.

The gain came even though grain loadings, which jumped in recent weeks with the winter wheat harvest in the plains, have abated some. Instead, short lines are seeing stronger shipments of coal, construction foundation materials and ores.

And small railroads surveyed by RMI hauled more tank cars of chemicals last week than any time since April 18. Since chemicals are needed in every stage of manufacturing from basic inputs to finished goods packaging to solvents for machinery maintenance, stronger chemical loadings could be an early sign of new factory demand.

Another early sign from rail freight of factory demand is demand for scrap materials, mostly metal in gondola cars headed for recycling as a cheaper input than building metal products completely from virgin ores. RMI counted scrap and waste shipments of 5,042 carloads last week, the highest since Feb. 28.

Contact John D. Boyd at jboyd@joc.com.