US rail box volume up in February despite bad weather, regulations

INTERMODAL container rail volume in the US increased in February 10.3 per cent over 2010, and was up 21.4 per cent on 2009, with the gain attributed to market share taken from trucking.

February`s year on year increase was the smallest since the summer 2010 due to heavy snow and the slight dip expected three to four weeks following Chinese New Year, a total of 881,830 trailers and containers, according to the Association of American Railroads (AAR).


The number of carloads was up six per cent so far in 2011 with intermodal ahead further at 9.1 per cent. Capacity squeeze continued with North American fleet idle at 20.2 per cent but with 12,457 units taken out of storage by owners in the US, Canada and Mexico in February alone, reports AAR.


US commodity volume increases were in ores and metals, an increase of 14 per cent year on year. Canadian railways, which saw a slight increase in carloads of 0.1 per cent had leaps in chemicals, up nine per cent, and oil products, up 10.2 per cent.


BNSF and Union Pacific took the lion`s share of freight in the first two months of 2011 at 22 per cent and 21 per respectively. Norfolk Southern, CSX and Canadian National all held 16 per cent, 15 per cent and 11 per cent with Canadian Pacific taking six per cent and the Kansas City Railroad taking five per cent of the market.


Rail line mergers will be under scrutiny following a bill passed by the US Senate Judiciary Committee which could see an end to mergers. Freight rates are also pending review by the US Surface Transportation Board this summer.