Week 47 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 remains 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 over the last 6 months been declining around 5% – but this week was -2.3 %. This contraction is still concerning me as it is saying the economy (although getting better) is still not producing goods.
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 | +0.9 % | decelerating | accelerating |
| 13 week rolling average | -2.6 % | decelerating | accelerating |
| 52 week rolling average | -6.4 % | 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 26, 2016.
For this week, total U.S. weekly rail traffic was 452,759 carloads and intermodal units, up 0.6 percent compared with the same week last year.
Total carloads for the week ending November 26 were 229,866 carloads, down 0.4 percent compared with the same week in 2015, while U.S. weekly intermodal volume was 222,893 containers and trailers, up 1.6 percent compared to 2015.
Five of the 10 carload commodity groups posted an increase compared with the same week in 2015. They included grain, up 20.2 percent to 22,438 carloads; metallic ores and metals, up 8.5 percent to 18,206 carloads; and miscellaneous carloads, up 7.8 percent to 7,461 carloads. Commodity groups that posted decreases compared with the same week in 2015 included petroleum and petroleum products, down 23.2 percent to 9,150 carloads; motor vehicles and parts, down 15.3 percent to 12,773 carloads; and forest products, down 8.4 percent to 8,511 carloads.
For the first 47 weeks of 2016, U.S. railroads reported cumulative volume of 11,848,889 carloads, down 9.2 percent from the same point last year; and 12,199,820 intermodal units, down 2.6 percent from last year. Total combined U.S. traffic for the first 47 weeks of 2016 was 24,048,709 carloads and intermodal units, a decrease of 6 percent compared to last year.
Coal is over 1/3 of the total railcar count, and this week the EIA says coal production is 1.4 % 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 | -0.4 % | +1.6 % | +0.6 % |
| Ignoring coal and grain | -2.3 % | ||
| Year Cumulative to Date | -9.2 % | -2.6 % | -6.0 % |
[click on graph below to enlarge]
Current Rail Chart:
z rail1.png
For the week ended November 26, 2016
- Estimated U.S. coal production totaled approximately 15.2 million short tons (mmst)
- This production estimate is 11.9% lower than last week’s estimate and 1.4% higher than the production estimate in the comparable week in 2015
- East of the Mississippi River coal production totaled 5.6 mmst
- West of the Mississippi River coal production totaled 9.5 mmst
- U.S. year-to-date coal production totaled 672.7 mmst, 18.5% lower than the comparable year-to-date coal production in 2015
Coal production from EIA.gov
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