Rail Shipments Plummet to Recessionary Levels

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Rail Shipments Plummet to Recessionary Levels
by Wolf Richter • January 7, 2016


“Weaknesses in energy and manufacturing, as well as world economic softening, had a negative impact on both carload and intermodal traffic in 2015.” Those were the encouraging words of John T. Gray, Senior VP of Policy and Economics at the Association of American Railroads (AAR).

Transportation is a measure of how well the real economy is clicking. Alas rail traffic is getting clobbered.

The deterioration in the second half of 2015 dragged the whole year down from 2014: carloads fell 6.1%, according to the AAR, while intermodal containers and trailers edged up 1.6%, for a total decline of 2.5%. But the deterioration late in the year was a doozie.

In December, total volume dropped 8.9% year over year, with both components down: even intermodal containers and trailers, which had been holding up for much of the year, edged down 0.7%; and carloads (bulk commodities, autos, and the like) plunged 15.6%. ........................(more)

http://wolfstreet.com/2016/01/07/rail-volumes-at-recessionary-levels/

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