AAR Reports Monthly Carload Declines Slow in February 2010

Traffic Affected by Record Snow Storms in Eastern U.S.

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Mar 10, 2010, 01:03 ET

WASHINGTON, March 10 /PRNewswire/ -- The Association of American Railroads (AAR) today reported that in February 2010, U.S. freight railroads saw a 1.5 percent decline in carloads compared with the same month last year and a decline of 15.6 percent compared with the same month in 2008.

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According to the March AAR Rail Time Indicators Report, 14 of the 19 major commodity categories tracked by AAR saw higher carloads last month compared with the same month last year. Carloads of coal, the single highest volume commodity carried by rail, were down 9.9 percent in February 2010 over February 2009. Excluding coal, U.S. rail carloads in February 2010 were up 7.2 percent over February 2009.

U.S. rail intermodal traffic, which covers the movement of truck trailers and shipping containers by rail, was up 10.1 percent in February compared with the same month last year, but down 10.6 percent for the same month in 2008.

"Rail traffic trends over the past few months, especially when you take out coal, are consistent with a slowly recovering economy," said John Gray, AAR's Senior Vice President of Policy and Economics. "Other economic indicators taken as a whole seem to be saying the same thing. Is a sustained recovery a sure thing? No, not yet, but prospects are certainly much brighter now than they were four or five months ago."

Record snowfalls on the East Coast last month made rail operations difficult and affected many rail customers' ability to originate or receive loads. The last week of February was the highest-volume week for U.S. rail carloads since December of 2008 -- likely at least partly the result of "catch up" traffic following the storms.

On a seasonally adjusted basis, U.S. rail carloads in February fell 0.1 percent compared with January 2010, while seasonally-adjusted U.S. intermodal traffic was down 3.6 percent in February compared to the prior month.

"Adjusting for seasonal issues that cause peaks or valleys in traffic -- such as end of year holidays and the fall grain harvest – allows us to see more clearly the strength or weakness of the underlying demand for rail traffic," Gray noted. "Over the past six months, the upward trend in seasonally adjusted rail traffic indicates an increase in underlying demand."

The Rail Time Indicators report, available at www.aar.org, comprises detailed monthly rail traffic data framed with other key economic indicators to show how freight rail ties into the broader U.S. economy. Both the monthly Rail Time Indicators report and a video summary are available on the AAR web site: www.aar.org. A widget social-media tool is also available, which includes a contact form and place to ask questions, allowing users to share the material by uploading it to Web sites, blogs, or online profiles.

To download the widget, click here or go to http://www.aar.org/NewsAndEvents/Widget/2009-0820-MonthlyTraffic.aspx

Editors' Note: The Association of American Railroads (AAR) is the world's leading railroad policy, research and technology organization focusing on the safety and productivity of rail carriers. AAR members include the major freight railroads, or Class I railroads, of the U.S., Canada and Mexico, as well as Amtrak. Class I railroads represent 67 percent of the U.S. freight rail mileage and 90 percent of freight railroad industry employees. Railroads account for 43 percent of intercity freight volume -- more than any other mode of transportation. To learn more about how freight rail works for America, the environment and for you, please visit: www.freightrailworks.org

Link to the Rail Time Indicators report here.

SOURCE Association of American Railroads