Rail Round-Up: May 2024 Freight Rail Traffic

MAY 2024 – The first three months captured a total traffic of 2,773,827 carloads and intermodal units, a 2.5 percent increase from the same time last year.

• U.S. railroads originated 1,060,801 carloads, down six percent from May 2023.
• U.S. railroads originated 1,281,248 containers and trailers (intermodal). This number reflects a 7.6 percent increase from May 2023.
• Combined U.S. carload and intermodal originations in May 2024 were 2,342,049, marking a slim one percent increase from May 2023.

Last month, certain commodities enjoyed year-over-year increases from May 2023. Such reported commodities included:

• Petroleum and related products: up 15.4 percent
• Chemicals: up 3.2 percent
• Grain: up 4.7 percent

On the other hand, certain commodity categories observed year-over-year declines. Such reported commodities included:

• Coal: down 22 percent
• Crushed stone, sand, and gravel: down 11.4 percent
• Primary metal products: down 7.2 percent

Rail traffic data is courtesy of the Association of American Railroads (AAR).

Coal's decline largely to blame for carload decrease

May represents yet another month where coal volumes performed well below their mark over the same period last year. The sustained decline for this commodity continues to influence overall U.S. carload traffic, acting as the main contributor to why total carload volumes have decreased year-over-year.

According to AAR, ironically, carloads of other commodities, excluding coal, have actually increased for the fourth consecutive month. In other words, if one looks past coal’s blustery decline, they will likely agree that the outlook for total carload movement is more even keel than the initial results, which include coal, suggest. Other commodity groups hold potential for growth in the future, even as coal lumbers behind.

If coal was removed from the equation, U.S. carload traffic in May 2024 would be up 0.3 percent compared to May 2023.

Increased import activity props up intermodal traffic

Meanwhile, the intermodal sector saw a clear boost in May, maintaining an upward trend that has sustained for several months. This development reflects revitalized import activity at U.S. seaports as freight rail carriers vie to transport inbound volumes. With the summer months now underway, retail stakeholders, like the National Retail Federation, have laid out sanguine forecasts, anticipating growing import demand leading into early fall. If that is the case, intermodal traffic is set to continue to rise.

Stay tuned for the June edition of Rail Round Up where we will recap the fifth month of 2024’s freight rail activity!

In the meantime, refer to Commerce Express Inc’s weekly rail updates for up-to-date rail traffic as well as industry news.