Coal news and updates

US weekly coal carloads drop to lowest total in 120 weeks: AAR

US railroads originated a new year-low volume of coal carloads for the week ending May 16, marking the lowest total in 120 weeks, according to data released Wednesday by the Association of American Railroads.

The AAR reported a total of 93,664 coal carloads, down 27 carloads week over week from the previous year-low of 93,691. It was the lowest reported coal volume since 87,371 carloads in the final week of 2012 and sixth time in only 19 weeks this year that volumes fell below 100,000.

The last year weekly coal carloads last fell below 100,000 more than six times was 1989 when it happened seven times, including in back-to-back intervals in the 51st and 52nd weeks of the year.

Volumes did not fall below 100,000 in any week of 2014 and were sub- 100,000 in only three weeks in 2013. Weekly coal carload totals were below 100,000 five times in both 1992 and 1993.

This year, coal carload volumes average 104,312 a week compared to 111,844 last year, a decline of 7,532 carloads.

The latest coal carloads total was a decline of 15.3% compared to the year-ago week.

Year-to-date US coal carload originations total 1.981 million, down 6.2% compared with the same period last year.

Overall, weekly US rail traffic totaled 549,199 cars, a drop of 0.3%, or 1,835 carloads, from last week. Coal carloads made up 17.1% 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 8,100 coal carloads, a 1.3% increase from the previous week but a 21.1% decrease from the same week last year. Year to date, coal carloads are down 7.7%.

BNSF POSTS A NEW YEAR-LOW FOR COAL SHIPMENTS

For the week, coal carloads for the four largest US railroads, which includes originations and interchange movements, were slightly up compared to the previous week; however, BNSF reported its lowest coal volumes of the year.

BNSF posted a year-low of 39,973 weekly coal carloads, down 4.6% from the prior week -- which at the time was a year-low total of 41,893 carloads -- and down 7.8% from the year-ago week.

It was the lowest total of coal shipments for the railroad since 39,817 carloads in the week ending June 14, 2014.

Coal volumes, which made up 20.4% of all traffic in the latest week, have decreased nine out of the last 12 weeks for the railroad.

Year to date, coal shipments are still up 4.7% for BNSF, the only major US railroad with an overall increase in coal shipments in 2015.

Norfolk Southern reported 21,003 coal carloads, recording the largest week-over-week increase of the major US railroads at 8.2%. The carload total was a drop of 18.5% compared to the year-ago week, and coal made up 13.8% of all traffic for the week.

Year to date, coal carloads have dropped four of the last seven weeks and are down 13.2% on Norfolk Southern rails.

Union Pacific reported 22,578, a 2.1% gain on its year-low total of 22,106 coal carloads the previous week. The increase in volumes snapped a string of four weeks that the railroad recorded a new year-low for coal traffic total.

Coal carloads have dropped week over week 12 of the last 15 weeks for Union Pacific.

The latest count was a 27.4% decrease in volumes from the year-ago week, and coal made up 12.9% of all traffic for the railroad. Year to date, coal volumes are down 13.4% for Union Pacific, the most of the four main US railroads.

CSX reported 20,630 coal carloads, a 2% increase from the previous week but a 1% decrease from the year-ago week. Coal made up 15.2% of all traffic.

Coal shipments have dropped four out of the six weeks for CSX and are down 7.2% year to date.

source: http://www.platts.com