Key insights
- US rail carload growth accelerated to 5% year-over-year, driven by intermodal volume. CSX led US intermodal growth. Canadian carload growth also improved. This suggests potentially stronger economic activity and demand for goods transportation, which could positively influence market sentiment.
Investing.com - US Class I railroad carload growth reached 5% year-over-year in week 20, up from 4.2% in week 19, according to Goldman Sachs data released Tuesday.
Intermodal volume growth climbed to 8.3% year-over-year last week from 6.9% the previous week, while ex-intermodal volume growth remained steady at 1.8% compared to 1.7% in week 19.
CSX (NASDAQ: CSX) led US intermodal carload growth at 11.7% year-over-year in week 20, ahead of Union Pacific (NYSE: UNP) at 8.4% and Norfolk Southern (NYSE: NSC) at 5.8%. CSX also posted the highest ex-intermodal carload growth at 2.9%, followed by Norfolk Southern at 2.7% and Union Pacific at 0.5%.
Canadian carload growth accelerated to 3% year-over-year in week 20 from 1.8% in week 19. Canadian National Railway (TSE:CNR) reported carload growth of 4.1% compared to 3.1% the prior week, with ex-intermodal carload growth rising to 7.9% from 5.6%. Intermodal carload growth declined to -1.3% from -0.2%.
Canadian Pacific Kansas City (TSE: CP) total carload growth reached 1.7% year-over-year in week 20 versus 0.1% in week 19. The company's intermodal carload growth increased to 4% from 2.3%, while ex-intermodal carload growth turned positive at 0.3% from -1.3%.
For the second quarter to date, total carload growth for US Class I railroads Union Pacific, Norfolk Southern and CSX is tracking at 3.1% year-over-year, with intermodal carloads up 3.2% and ex-intermodal carloads up 3%. Combined Canadian Pacific and Canadian National carloads are tracking at -0.1% for the quarter to date, with intermodal carloads down 2.5% and ex-intermodal carloads up 1.6%.