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AAR: 'Long way to go' before rail traffic returns to normal

U.S. freight-rail combined carload and intermodal volume declined 9.3 precent to 2,337,977 units in July compared with the same month last year, according to Association of American Railroads (AAR) data.

U.S. railroads hauled 1,042,017 carloads last month, down 17.6 percent, and 1,295,960 containers and trailers, down 1.4 percent. 

Three of the 20 carload commodity categories tracked by the association each month logged carload gains in July compared with year-ago levels. They were food products, up 1.7 percent; farm products (excluding grain), up 8.3 percent; and lumber and wood products, up 1.6 percent.

Commodities that posted declines last month included coal, down 28.7 percent; crushed stone, sand and gravel, down 24.8 percent; and metallic ores, down 63.7 percent.

"Rail traffic, like the overall economy, is generally trending in the right direction," said AAR Senior Vice President John Gray. "But, progress is slow. There's a long way to go before it's back to normal, and both week-to-week improvements and setbacks in individual commodities are to be expected."

Coal and other energy-related commodities continue to struggle more than most, Gray said. 

"Intermodal is closer than any other rail traffic category to pre-pandemic levels," he added.

Total U.S. carload traffic for the first seven months of 2020 fell 16.2 percent to 6,550,030 units, while intermodal volume fell 9.1 percent to 7,487,523 containers and trailers compared with the same period last year.

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