Coal news and updates

US weekly coal carloads hit lowest volumes in 119 weeks: AAR

US railroads originated a year-low volume of coal carloads for the week ended May 9 and the lowest total in 119 weeks, data released Wednesday by the Association of American Railroads showed.

The AAR reported a total of 93,691 coal carloads for the week, the lowest reported volume since 87,371 carloads in the final week of 2012.

It was the fifth time in only 18 weeks this year that coal carload volumes fell below 100,000.

The last time coal carloads were below 100,000 for five weeks in the same year was 1993, when volumes fell below 100,000 for the fifth time in the 52nd and final week of the year, according to the AAR. The same thing happened in 1992, when volumes fell below 100,000 for the fifth time in the final week of the year.

 Weekly coal carloads last fell below 100,000 more than five times in 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 below 100,000 in only three weeks in 2013.

This year, coal carload volumes averaged 104,904 a week, compared with 111,844 last year, a decline of 6,940 carloads.

The latest coal carloads total was a decrease of 16.1% week on week and a drop of 10.7% from the year-ago week.

Year-to-date US coal carload originations totaled 1,888,264, down 5.7% compared with the same period last year.

Overall US rail traffic totaled 551,034 cars, a drop of 2.3%, or 14,753 carloads, from last week. Coal carloads made up a year-low 17% 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 7,997 coal carloads, a 7.9% increase from last week's year-low total of 6,979 and a 14.6% increase from the same week last year. Year to date, coal carloads are down 6.8%.

BNSF, UNION PACIFIC POST NEW YEAR-LOW COAL COUNTS

For the week, coal carloads for the four largest US railroads, which include originations and interchange movements, were down, with BNSF and Union Pacific posting their lowest weekly volumes of the year.

Union Pacific reported a year-low 22,106 coal carloads, a slight 26-carload drop from last week. Coal volumes have declined on the railroad the last four weeks, marking a new year-low total each time, and have dropped week on week in 12 of the last 14 weeks.

The latest count was a 27.5% decrease in volumes from the year-ago week, and coal made up 12.6% of all traffic for the railroad. Year to date, coal volumes are down 12.6%.

BNSF reported a year-low of 41,893 weekly coal carloads, down 7.5% from the prior week and 4.3% from the year-ago week. It was the lowest total of coal shipments for the railroad since 42,228 carloads in the week ended February 7.

Coal volumes, which made up 21.2% of all traffic in the latest week, have decreased seven out of the last 11 weeks for the railroad.

Year to date, coal shipments are up 5.4% for BNSF, the only major US railroad with an overall increase in coal shipments in 2015.

Norfolk Southern reported 19,413 coal carloads, a 12% week-on-week decrease and a drop of 25% from the year-ago week. Coal made up only 12.9% of all traffic for the week.

It was the second-lowest week for total coal shipments for the railroad in 2015 and just the third time volumes fell below 20,000 this year. Year to date, coal carloads are down 12.9% on Norfolk Southern rails, the most of the four main US railroads.

CSX reported 20,228 coal carloads, a 10.6% drop from the previous week and a 10.6% decrease from the year-ago week. Coal made up 14.8% of all traffic.

Coal shipments have dropped four out of the last five weeks for CSX and are down 7.5% year to date.

source: http://www.platts.com