Rail Round-Up: October 2023 Freight Rail Traffic

OCTOBER 2023 – All in all, total U.S. rail traffic for ten months of 2023 was 20,101,486 carloads and intermodal units, a decrease of 3.8 percent compared to last year.?

• American railroads originated 921,591 carloads. This number reflects a slim 0.3 percent decrease from October 2022.
• American railroads originated 1,075,731 containers and trailers. This number reflects a 2.2 percent increase from October 2022.
• Combined U.S. carload and intermodal originations in October 2023 were 1,977,322 marking a 1 percent increase from October 2022.

The AAR also tracks commodities for carloads and found certain categories enjoying year-over-year increases from October 2022. Such reported commodities included:

• Petroleum: Up around 5,000 carloads
• Motor Vehicles (including parts): Up around 3,100 carloads
• Chemicals: Up around 3,800 carloads

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

• Coal: Down around 12,300 carloads
• Grain: Down around 4,400 carloads
• Crushed Stone, Sand and Gravel: Down around 800 carloads

Rail traffic data is courtesy of the Association of American Railroads.

Panama Canal restrictions create opportunity for rail

When combining both carload and intermodal traffic, this month’s railroad performance has been the strongest (regarding volumes) of any month since June 2021—a span of 28 months.

Part of this relates to the seasonality of intermodal this time of year, however capacity-killing restrictions on oceangoing vessels through the drought-stricken Panama Canal has created another source of opportunity for freight rail.

Large ocean carriers have begun making regular and ad hoc service calls at Mexico’s Port of Lázaro Cárdenas as a way to lighten their loads before entering the canal.

Stops at this port have shifted a share of discretionary U.S. East Coast and inland ocean freight volumes to cross-border intermodal services. Carrier Hapag-Lloyd has even made an agreement with railway Canadian Pacific Kansas City, a Class I railroad determined to supplant a transcontinental service across North America.

Stay tune for November’s Rail Round Up where we will recap the eleventh month of 2023’s freight rail activity!

In the meantime, refer to Commerce Express Inc’s weekly newsletter for frequent updates about rail traffic as well as industry news.