Rail Traffic Takes a Summer Dip: What's Going On?

Rail traffic in the U. S. has been a mixed bag lately. While some goods are moving more than before, others are seeing a slowdown. This is especially true for intermodal transport, which involves moving goods in containers by rail. The numbers show that intermodal traffic has taken a hit, likely because fewer goods are being shipped from China to the U. S. For the week ending June 21, the total number of rail carloads and intermodal units was almost the same as last year, with a tiny increase of 0. 4%. But if you look closer, carloads went up by 4. 5%, while intermodal units dropped by 2. 9%. This drop in intermodal traffic could be because shipping costs from China to the U. S. have gone down, meaning fewer goods are being moved by rail. Some types of goods are doing better than others. Grain, petroleum, and motor vehicles saw increases, while non-metallic minerals saw a decrease. Over the first 25 weeks of the year, rail traffic has been up overall, with a 4. 1% increase in combined carloads and intermodal units compared to last year. Looking at North America as a whole, rail traffic was up by 1. 3% for the week, with carloads increasing by 3. 5% and intermodal units decreasing by 0. 8%. For the first 25 weeks of the year, North American rail traffic was up by 2. 8% compared to last year. However, Mexican railroads reported a significant drop in intermodal units, down by 10. 7% for the week, which might be due to weaker import demand.