Week 46 of 2016 shows same week total rail traffic (from same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. Long term rolling averages remain in contraction – but the 4 week rolling average is now in positive territory.
Analyst Opinion of the Rail Data
We review this data set to understand the economy. If coal and grain are removed from the analysis, rail has recently been declining around 5% – but this week was -2.1 %. This week the one year rolling average again improved – but it remains in contraction.
The contraction in rail counts began over one year ago, and now rail movements are being compared against weaker 2015 data – and this is the cause periodic acceleration in the short term rolling averages. Still, rail is weak to very week compared to previous years.
This analysis is looking for clues in the rail data to show the direction of economic activity – and is not necessarily looking for clues of profitability of the railroads. The weekly data is fairly noisy, and the best way to view it is to look at the rolling averages (carloads and intermodal combined).
| Percent current rolling average is larger than the rolling average of one year ago | Current quantities accelerating or decelerating | Current rolling average accelerating or decelerating compared to the rolling average one year ago | |
| 4 week rolling average | +0.5 % | accelerating | accelerating |
| 13 week rolling average | -3.1 % | accelerating | accelerating |
| 52 week rolling average | -6.8 % | accelerating | accelerating |
A summary of the data from the AAR:
The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending November 19, 2016.
For this week, total U.S. weekly rail traffic was 547,804 carloads and intermodal units, up 2.8 percent compared with the same week last year.
Total carloads for the week ending November 19 were 271,420 carloads, up 1.3 percent compared with the same week in 2015, while U.S. weekly intermodal volume was 276,384 containers and trailers, up 4.4 percent compared to 2015.
Three of the 10 carload commodity groups posted an increase compared with the same week in 2015. They were grain, up 19.9 percent to 25,916 carloads; farm products excl. grain, and food, up 3.5 percent to 17,057 carloads; and coal, up 1.7 percent to 94,751 carloads. Commodity groups that posted decreases compared with the same week in 2015 included petroleum and petroleum products, down 6.9 percent to 11,076 carloads; metallic ores and metals, down 3.4 percent to 19,099 carloads; and motor vehicles and parts, down 2.5 percent to 18,611 carloads.
For the first 46 weeks of 2016, U.S. railroads reported cumulative volume of 11,619,023 carloads, down 9.3 percent from the same point last year; and 11,976,927 intermodal units, down 2.7 percent from last year. Total combined U.S. traffic for the first 46 weeks of 2016 was 23,595,950 carloads and intermodal units, a decrease of 6.1 percent compared to last year.
Coal is over 1/3 of the total railcar count, and this week the EIA says coal production is 1.2 % higher than the production estimate in the comparable week in 2015.
The middle row in the table below removes coal and grain from the changes in the railcar counts as neither of these commodities is economically intuitive.
| This Week | Carloads | Intermodal | Total |
| This week Year-over-Year | +1.3 % | +4.4 % | +2.8 % |
| Ignoring coal and grain | -2.1 % | ||
| Year Cumulative to Date | -9.3 % | -2.7 % | -6.1 % |
[click on graph below to enlarge]
Current Rail Chart:
z rail1.png
For the week ended November 12, 2016
- Estimated U.S. coal production totaled approximately 16.8 million short tons (mmst)
- This production estimate is 0.8% lower than last week’s estimate and 1.2% higher than the production estimate in the comparable week in 2015
- East of the Mississippi River coal production totaled 6.2 mmst
- West of the Mississippi River coal production totaled 10.6 mmst
- U.S. year-to-date coal production totaled 640.3 mmst, 19.3% lower than the comparable year-to-date coal production in 2015
Coal production from EIA.gov
include(“/home/aleta/public_html/files/ad_openx.htm”); ?>
