On April 3, the American Association of Railroads released its monthly freight movement report for March 2008. The numbers again reflect weak consumer spending, with no relief in sight for the wilted home building industry. Carload volume, which does not include semi trailers or shipping containers, dropped 0.1% compared with March 2007 figures. Intermodal traffic volume consisting of shipping containers and truck trailers loaded on flat cars dropped 5.6% compared with one year ago.Spurred by the weaker dollar, carload commodities for export are maintaining respectable volume, with carloads of grain increasing 13.9% and carloads of coal increasing 5.9%. However, the AAR press release indicates that of the 19 major commodity categories tracked by the AAR, 12 saw carload declines in March. Carloads of motor vehicles and equipment declined considerably, with a 19.4% drop in loading compared to 2007. Infrastructure and construction staples of crushed stone, sand and gravel showed a carload decline of 13.4% compared with a year ago. Lumber and wood products loadings remain in decline. AAR Senior Vice President John T. Gray gives perspective to the numbers by stating simply: "Recent disappointing economic news helps explain why rail traffic is not more robust."
Trending for the entire first quarter is fully reflected in the March rail volume report. No changes of additional significance have occurred. There are no spikes or reversals to speculate upon. The single most noticeable trend is the overall increase of 2.3% in total rail loading volume from first quarter 2007 compared to first quarter 2008. The report shows that intermodal traffic remains in decline. This stands to confirm the increasing reliance upon railroads for freight transportation even as the economy slows and while the trucking industry continues to suffer under oppressive fuel costs.
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