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US coal carload volumes rise to highest total in 11 weeks: AAR

Coal carload volumes originated on US railroads reached to an 11-week high, according to data released Wednesday by the Association of American Railroads.

For the week ending July 18, the AAR reported 99,975 coal carloads, up 4.9% from 95,318 carloads the previous week. It was the second straight week of coal shipment gains since a year-low 82,924 carloads were reported for the week ending July 4.

It was the highest volume of coal carloads since 101,495 carloads for the week ending May 2.

Despite the increase, the latest total marked the 15th week this year coal volumes were below 100,000 carloads. It is the most times in a year weekly volumes have remained that low since the AAR began such record keeping in 1988, more than doubling the previous high of seven weeks in 1989.

This year, coal carload volumes average 100,206 a week compared with 111,844 last year, a decline of 11,638 carloads, or 10.4%. The latest weekly total was a decrease of 11.6% from the year-ago week.

Year-to-date US coal carload originations total 2,805,755, down 9.5%, compared with the same period last year.

Overall US rail traffic for the week totaled 551,181 cars, an increase of 3.2%, or 17,084 carloads, from the last week. Coal made up 18.1% of all traffic.

Canadian railroads -- which include the US operations of Canadian National, which serves several mines in the Illinois Basin, and Canadian Pacific -- originated 8,234 coal carloads, an 11.6% increase from the previous week but a 6.1% decrease from the same week last year.

Year to date, coal carloads on Canadian railroads are down 10.4%.

COAL VOLUMES UP ON ALL MAJOR US RAILROADS

Coal carload volumes for the four largest US railroads, which includes originations and interchange movements, were up for the second straight week.

CSX reported 17,596 coal carloads, up 11.7%, or 1,847 carloads, from 15,749 coal carloads the previous week. It was a 28.4% decrease in volumes from the year-ago week, and coal made up 13.7% of all traffic.

Coal carload volumes have fallen week over week for CSX in eight of the last 15 weeks. Year to date, coal shipments are down 11.6%.

Norfolk Southern reported 20,492 coal carloads, up 13.5%, or 2,435 carloads, from 18,057 carloads the previous week. It was a 17.8% decrease in volumes from the year-ago week, and coal made up 13.9% of all traffic.

Coal carload volumes have fallen week over week for the railroad in seven of the last 16 weeks. Year to date, coal volumes are down 17.1%, the most of all major US railroads.

Union Pacific reported 29,368 coal carloads, a gain of 660 carloads, or 2.3%, from the previous week. It was a 14.8% decrease over the year-ago week, and coal made up 16.6% of all traffic.

Coal shipments have increased four of the last five weeks on the railroad since a year-low 19,235 carloads but totals have dropped in 16 of the last 24 weeks. Year to date, coal carload volumes are down 16.6%.

BNSF reported 43,566 carloads, a gain of 2,472 carloads, or 6%, from the previous week. It was a 5.9% increase over the year-ago week, and coal made up 21.8% of all traffic.

Coal shipments have increased three straight weeks for BNSF after a year-low 37,966 carloads, but totals have decreased 14 of the last 21 weeks.

Year to date, coal shipments are still up 2.7%, or 28,597 carloads, for BNSF, the only major US railroad with an overall increase in coal shipments in 2015.

source: http://www.platts.com