RMI recently reported the RailConnect Index Quarterly Analysis of Traffic Statistics for the First Quarter 2006. In its Quarterly Analysis, which is designed to provide railroads and rail shippers with insight on short line growth and trends, RMI reports that short line carload traffic increased by 2.2% in the first quarter ending March 25, 2006.
The RailConnect Index is the rail industry's only source of short line traffic statistics and includes traffic summaries of 14 commodity groups from nearly 265 short line, regional and terminal switching railroads in North America.
'Our data highlights the continued growth within Intermodal transportation and the fact that more and more shippers continue to rely on short line railroads to deliver Intermodal services,' explains Pete Kleifgen, Chairman of RMI. 'In fact, Intermodal traffic accounted for 50 percent of short line year over year growth.'
Winners and losers: Trends in commodity traffic
Two commodity groups experienced double digit growth in the first quarter, Stone, Clay & Aggregates at 11.9% and Farm & Food (excluding grain) at 10.1%. Short line Intermodal traffic took third place at seven percent growth versus the same period for 2005. Intermodal continues to rank first in terms of the largest commodities represented in the Index in terms of units.
While overall growth has increased, RMI's RailConnect Index' Quarterly Analysis did point to the fact that five of 14 commodity groups declined, with Ores showing the largest change at -12.6%. On Class I railroads, half of the commodity groups declined, led by Chemicals down -5.3%, while Intermodal led all Class I growth with a 5.3% increase.
Overall, short line traffic grew in the first quarter of 2006 with Stone, Clay & Aggregates; Farm & Food (excluding Grain); Intermodal; Grain and Waste & Scrap Materials as the list of the top five performers in the first half of 2005 (See chart below).
Traffic comparisons
Short lines proved consistent once again quarter to quarter in types of traffic handled. Originated traffic accounted for 36% of all short line traffic in the first quarter 2006 and in the first quarter 2005. Terminated traffic accounted for 41% compared to 42% in 2005 and bridge traffic accounted for 10 percent compared to nine percent in 2005. Local traffic remained consistent at 14% in 2006 and 2005. In 2006, local traffic grew 2.8% during the first quarter. Bridge traffic, the most vulnerable type of traffic for short lines, accounted for 10% of 2006 and 2005 traffic and grew at seven percent during the first quarter of 2006.
Based on historic seasonality in local and bridge traffic, RMI expects that local traffic will grow as the year progresses while bridge traffic will decline as a percentage of total carloads.
While short line carload traffic increased overall by 2.2% in the first quarter 2006, Class I growth through week 12 was 1.8%. Excluding bulk and intermodal commodities, short line carload growth was flat, while Class I carload growth declined.
