Rate of rail traffic growth slows

For the first six months of 2011, railroad carloads were up 2.7% over the corresponding period of 2010, but for the month of June carload growth was up only 0.9%, the Association of American Railroads reported Monday.

Intermodal growth, which has often been in the double digits this year, slipped to 4.6% in June compared with June 2010, the lowest monthly year-over-year increase in 18 months, AAR said.

AAR noted that in May, Class I railroads added 745 employees, bringing the total to 157,522 — “the fourth straight month to see an employmentincrease, and the 13th monthly employment increase in the last 17 months.”

“For several months now, rail traffic, along with other economicindictors, has presented a mixed picture of the economy,” said AAR Senior Vice President John T. Gray. “While rail carloads have been relatively weak for the past quarter, largely due to coal traffic being down, rail intermodal remains relatively strong.”

During the month of June, said AAR, railroads brought 2,847 freight cars back into service, leaving 276,236 cars, 18.2% of the North American fleet, in storage.