U.S. Intermodal Rail Volume Jumps 12.6% in Week 41 as Shippers Shift Freight From Trucks

U.S. intermodal volume surged 12.6% year-over-year in week 41, the Association of American Railroads reported Wednesday, as sustained high diesel prices and tight truck capacity accelerated a shift from road to rail. Overall U.S. rail traffic rose 8.5% for the week, above the 5.5% average pace of the prior four weeks; North American intermodal climbed 10.8% and total North American traffic gained 7.2%. Carload volumes rose 3.5% for the week, led by primary metal products, up roughly 25% on stronger steelmaking demand, with coke traffic up 15.4% and iron and steel scrap up 9.1%. Chemicals and petroleum gained 2.6%, agriculture and food products rose 6.7%, coal edged up 0.9% and motor vehicles and parts added 5.6%. Primary forest products fell 10%. Excluding coal and grain, carload growth was 4%. Analysts expect double-digit third-quarter EPS growth at most Class I railroads, except Norfolk Southern at about 5.5%, amid an intermodal share shift toward CSX following new BNSF-CSX interline partnerships. Earnings calls from CSX, Union Pacific and Norfolk Southern are due this week, with CN and CPKC next week.