Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

North American Rail Traffic Fell 3.3% in Week Ended Aug. 31

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/04/2019 | 01:46pm EDT

By Colin Kellaher

North American rail traffic fell 3.3% last week, as weakness in the U.S. manufacturing sector continues to weigh on volumes, data from the Association of American Railroads showed.

Carload volume and intermodal traffic for the week ended Aug. 31 on 12 reporting U.S., Canadian and Mexican railroads each fell 3.3%, the trade group said Wednesday.

North American rail traffic was 4.8% lower in the week ended Aug. 24. For the first 35 weeks of the year, North American volume is down 2.5%.

The AAR said U.S. rail traffic fell 4.5% last week after sliding 5.9% a week earlier. U.S. carloads fell 4.2% amid declines in eight of the 10 commodity groups tracked, while the volume of U.S. intermodal containers and trailers fell 4.9% for the week.

For the month of August, U.S. rail traffic fell 5%, marking the seventh straight month of declines for both carloads and intermodal units. U.S. rail traffic is now down 3.6% for the year to date, the AAR said.

"While the strength of the overall economy remains unclear, in the last quarter it has become much more evident that the portion of the economy which generates freight--manufacturing and goods trading--has weakened significantly," John Gray, AAR senior vice president, said of the U.S. data.

"We had a similar pattern in 2016, when rail traffic was weak and the overall economy wobbled but didn't fall down," Mr. Gray added. "Railroads are hopeful that the uncertainty plaguing economies here and abroad will dissipate soon and solid economic and industrial growth will return."

Union Pacific Corp. (UNP) earlier Wednesday said it now expects its freight volumes in the second half of the year will fall in the mid-single digits, compared with a July forecast for a decline of about 2%.

Adding to the pain, Moody's Investors Service on Wednesday said it expects coal demand from utilities will drop by more than 50% by 2030, weighing on U.S. railroads. Coal is the largest freight commodity, excluding intermodal units.

"Our forecast of a more than 50% drop in coal demand from utilities by 2030 implies that coal demand would decline by about 7% per annum on average over the next 10 years, which would translate into roughly $5 billion in lost revenues for the railroads, or 5.5% of 2018 industry revenues," Moody's said.

Elsewhere in North America, the AAR said rail traffic edged up 0.3% in Canada last week, as a 2.2% rise in intermodal units more than offset a 1.3% drop in carloads.

Rail traffic slipped 0.4% in Mexico last week, the AAR said, with intermodal units and carloads both down 0.4%.

Write to Colin Kellaher at colin.kellaher@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AAR CORP. -3.58% 39.81 Delayed Quote.6.61%
AUDENTES THERAPEUTICS, INC. -0.89% 26.85 Delayed Quote.25.94%
BERKSHIRE HATHAWAY INC. 0.02% 313270 Delayed Quote.2.35%
CANADIAN NATIONAL RAILWAY COMPANY -0.24% 114.84 Delayed Quote.13.86%
CANADIAN PACIFIC RAILWAY LIMITED -0.73% 283.84 Delayed Quote.18.51%
CORN FUTURES (C) - CBR (FLOOR)/C1 -0.95% 391 End-of-day quote.5.27%
CSX CORPORATION -1.59% 68.67 Delayed Quote.12.31%
KANSAS CITY SOUTHERN 7.26% 145.25 Delayed Quote.52.17%
NORFOLK SOUTHERN CORPORATION -0.98% 181.91 Delayed Quote.21.65%
UNION PACIFIC -1.33% 161.5 Delayed Quote.16.83%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 1.28% 532.25 End-of-day quote.4.42%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
01:23pIn a Case of Missing Paychecks, Millions in Taxes Remain Unpaid
DJ
12:46pBank of Japan's Kuroda calls for mix of steps to boost economic growth
RE
11:56aBrexit stumble to dent euphoric pound but bulk of gains to hold
RE
11:44aFrench SMEs that do business with UK poorly prepared for Brexit
RE
10:15aIn a Case of Missing Paychecks, Millions in Taxes Remain Unpaid
DJ
10:15aGermany's Labor System Would be Difficult to Import to U.S.
DJ
10:00aQantas tests world's longest commercial flight
RE
09:42aEU's incoming economy chief calls for less restrictive budget policies
RE
09:41aPRESIDENCY OF REPUBLIC OF SOUTH AFRICA : President Ramaphosa attends first Russia-Africa Summit
PU
08:26aQATAR CENTRAL BANK : Best Central Bank Governors in the World
PU
Latest news "Economy & Forex"