Steel Products
Both Steel Scrap and Steel & Other Primary Metals Rail Shipments Increase
Written by Brett Linton
August 12, 2013
Economy Moving in Right Direction but Not Firing on All Cylinders
WASHINGTON, D.C. – August 8, 2013 – The Association of American Railroads (AAR) today reported that total U.S. rail traffic was mixed for July 2013, with intermodal setting a new July record for average weekly volume and carload volume decreasing slightly overall compared with July 2012.
Intermodal traffic in July totaled 1,218,625 containers and trailers, up 2.5 percent (29,328 units) compared with July 2012. The weekly average of 243,725 units in July 2013 was the highest for any July in history. Carloads originated in July totaled 1,384,742, down 0.5 percent (7,532 carloads) compared with the same month last year.
Thirteen of the 20 commodity categories tracked by the AAR each month saw year-over-year carload increases in July 2013 over the same month last year. Commodities with the biggest carload increases in July included petroleum and petroleum products, up 24.9 percent or 13,089 carloads; crushed stone, gravel and sand, up 11.7 percent or 11,004 carloads; iron and steel scrap, up 19.4 percent or 3,307 carloads; stone, clay, and glass products, up 7.9 percent or 3,091 carloads; and steel and other primary metal products, up 4.7 percent or 2,337 carloads.
Commodity categories with carload declines last month included coal, down 4.1 percent or 24,072 carloads from July 2012; and grain, down 9.5 percent or 8,433 carloads.
Excluding coal and grain, total U.S. carloads were up 3.5 percent, or 24,973 carloads, in July 2013 compared with July 2012.
“Historically, coal and grain together typically account for around 50 percent of tonnage and around 30 percent of revenue for major U.S. railroads, so their importance to railroads is hard to overstate,” said AAR Senior Vice President John T. Gray. “That said, coal and grain traffic is down for reasons that have little or nothing to do with the state of the economy. The remaining rail traffic segments are mixed, reflecting an economy that’s moving in the right direction but not firing on all cylinders.”
AAR today also reported mixed rail traffic for the week ending August 3, 2013. U.S. railroads originated 287,372 carloads last week, down 0.4 percent compared with the same week last year, while intermodal volume for the week totaled 255,024 units, up 4.8 percent compared with the same week last year. Total U.S. rail traffic for the week ending August 3 was 542,396 carloads and intermodal units, up 2.0 percent compared with the same week last year.
Seven of the 10 carload commodity groups tracked on a weekly basis posted increases compared with the same week in 2012, including petroleum and petroleum products, up 19.0 percent, and nonmetallic minerals and products, up 11.5 percent. The groups showing a decrease in weekly traffic included grain, down 10.9 percent.
For the first 31 weeks of 2013, U.S. railroads reported cumulative volume of 8,602,107 carloads, down 1.3 percent (115,704 carloads) from the same point last year, and 7,489,063 intermodal units, up 3.5 percent (249,957 units) from last year. Total U.S. traffic for the first 31 weeks of 2013 was 16,091,170 carloads and intermodal units, up 0.8 percent from last year.
Canadian railroads reported 77,847 carloads for the week, up 0.3 percent compared with the same week last year, and 55,887 intermodal units, up 5.0 percent compared with 2012. For the first 31 weeks of 2013, Canadian railroads reported cumulative volume of 2,406,650 carloads, up 1.2 percent (28,446 carloads) from the same point last year, and 1,637,114 intermodal units, up 4.1 percent (64,407 units) from last year.
Mexican railroads reported 16,842 carloads for the week, up 14.9 percent compared with the same week last year, and 10,425 intermodal units, down 4.5 percent. Cumulative volume on Mexican railroads for the first 31 weeks of 2013 is 478,994 carloads, up 9.0 percent from the same point last year, and 293,712 intermodal units, down 0.7 percent.
Combined North American rail volume for the first 31 weeks of 2013 on 13 reporting U.S., Canadian and Mexican railroads totaled 11,487,751 carloads, down 0.4 percent compared with the same point last year, and 9,419,889 trailers and containers, up 3.4 percent compared with last year.

Brett Linton
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