RMI reports the RailConnect Index Analysis of Traffic Statistics for the first 26-week period of 2006. In its 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 3.8% in the first half of 2006, ending July 1, 2006. Class I traffic experienced an overall increase of 3.0%.
The RailConnect Index is the rail industry's only source of short line traffic statistics and includes traffic summaries of 14 commodity groups from 274 short line, regional and terminal switching railroads in North America.
'The data provided in the Index highlights the continuous changes in rail traffic, quarter over quarter and year over year,' explains Pete Kleifgen, Chairman of RMI. 'The good news for short lines is that excluding bulk cargoes and Intermodal movements, short line carload growth was up 2.6% and accounted for 45% of all first half short line carload growth. While Intermodal accounted for 21% of short line year over year growth, Coal and Grain made up the balance.'
Winners and losers: Trends in commodity traffic
In the first quarter, traffic increased overall and two commodity groups experienced double digit growth. In the second quarter, overall growth was down, no commodities reported double digit growth in 2006 versus 2005, and four of the 14 commodity groups showed a decline. This is an overall improvement over the first quarter, when five commodity groups reported declines. Ores reported the largest negative change at -4.7%, an improvement over the -12.6% decline Ores reported in the first quarter.
Metals & Products grew at a 9.5% rate, faster than all other commodities on short lines compared to last year's first half. Stone, Clay & Aggregates ranked second at 8.3%. Farm & Food (Excluding Grain) at 8.0% was third in carload growth.
Overall, short line traffic grew in the first quarter of 2006 with Metals & Products; Stone, Clay, Aggregates; and Farm & Food (excluding Grain), topping the list of the top five performers in the first half of 2006.
Traffic comparisons
Short lines proved consistent once again quarter to quarter in types of traffic handled. Originated traffic accounted for 35% of all short line traffic in 2006 and in 2005. Terminated traffic accounted for 41% in both years and bridge traffic accounted for 10% in both years. Local traffic remained consistent at 14% in 2006 and 2005. In 2006, local traffic grew 6 percent during the first six months. Bridge traffic, the most vulnerable type of traffic for short lines, accounted for 10% of 2006 traffic and grew at three percent during the first half of 2006.
Overall, short line car loadings improved during the second quarter of 2006 versus the first quarter of 2006. Traffic increased 5.1%, versus the slow first quarter when traffic increased only 2.5%.
