North American Rail Volumes Drop

Rail volumes on Class 1 railroads (carloads and intermodal) have declined 5.1%, year-over-year in the fourth quarter to date, based on a 5.3% decline in carloads and 4.7% drop in intermodal units.

Through the week ended November 15, estimated US Class 1 ton-miles declined 3.9%, year-over-year. Both volume metrics in the fourth quarter have shown more severe contractions than earlier in the year. By comparison, Class 1 unit volumes and estimated ton-miles declined 3.0% and 0.9% year-over-year, respectively, in third-quarter 2008, reports John Larkin, Stifel Nicolaus.

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