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US weekly coal carload volumes rise again, but remain historically low: AAR

Weekly coal carloads volumes originated on US railroads rose for the third straight week but totals remained historically low, according to data that the Association of American Railroads released Wednesday.

For the week that ended Saturday, the AAR reported 95,095 coal carloads, up 6%, or 5,401 carloads, from the previous week, breaking a streak of three straight weeks where volumes were below 90,000 carloads.

Carload totals for the week the ended May 30 reached a 125-week low of 88,025 carloads, the lowest reported since 87,371 carloads in the final week of 2012, the AAR said. The following two weeks had volumes of 88,346 carloads and 89,694 carloads, the second- and third-lowest totals of the year.

The latest total marks the 11th week this year volumes were below 100,000 carloads, a mark that had not been reached since the AAR began such record keeping in 1988. According to AAR data, coal carloads last fell below 100,000 the most times in 1989, when it happened in seven weeks.

The latest coal carloads total slid 13.7% compared with the same week a year ago.

This year, coal carload volumes average 101,537 a week compared with 111,844 a year ago, a decline of 10,307 carloads.

Year-to-date US coal carload originations fell 8.6% from the same period last year to about 2.44 million.

Overall US rail traffic for the week totaled 550,839 cars, down 0.7%, or 3,622 carloads, from last week. Coal made up 17.3% 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 8,174 coal carloads, a 7.8% decrease from the previous week and a 15.5% decrease from the same week last year. Year to date, coal carloads are down 10.3%.

COAL SHIPMENT VOLUMES JUMP FOR UNION PACIFIC, CSX

For the week, coal carloads for the four largest US railroads, which includes originations and interchange movements, were up compared with the previous week, with volumes showing a marked increase for Union Pacific and CSX.

Union Pacific reported 25,274 coal carloads, a 31.4% week-on-week increase of 6,039 carloads from a year-low total of 19,235 carloads. The railroad had reported three straight weeks of year-low volumes before the increase in coal shipments.

But the latest total still marked a 23.4% drop in coal volumes from the year-ago week. Coal made up 14.3% of weekly traffic.

Coal carload volumes had been less than 22,600 carloads for eight of the last nine weeks for Union Pacific and had declined week over week 15 of the last 19 weeks.

Year to date, coal carload volumes are down 16.7% for Union Pacific, the most of the four major railroads.

CSX reported 20,951 coal carloads, a 10.2% increase of 1,939 carloads from the previous week but a 10% decrease from the year-ago week. Coal made up 15.4% of all traffic.

The latest total marked the third straight week-on-week increase in coal volumes for the railroad. Year to date, coal volumes are down 9.4% for CSX.

COAL SHIPMENTS FLAT FOR NORFOLK SOUTHERN, BNSF

Norfolk Southern reported 19,425 coal carloads, a 0.9% increase of 171 carloads week over week but a 23.3% drop from the year-ago week. Coal made up 13.1% of all traffic.

Coal carloads have increased three straight weeks for Norfolk Southern but, year to date, coal volumes are down 16%.

BNSF reported 40,963 carloads, a loss of 800 carloads, or 1.9%, from the previous week but a 1.8% increase over the year-ago week. Coal made up 20.9% of all traffic.

Coal shipments have decreased eight out of the last 10 weeks for the railroad.

Year to date, coal shipments are still up 3.8%, or 34,458 carloads, for BNSF, the only major US railroad with an overall increase in coal shipments in 2015.

source: http://www.platts.com