January 18, 2001 From Association of American Railroads Train-It

2000 Sets Traffic Record in Spite of 4th Quarter Slowdown

Last year was a record year for the nation's freight railroads, both in terms of total volume and in terms of intermodal traffic.

Total volume of an estimated 1.462 trillion ton-miles was 1.7 percent higher than the previous record established in 1999. It was the third consecutive year that ton-mileage established a record.

Last year marked the fifth consecutive year that rail intermodal traffic set a record. Volume of 9.18 million trailers and containers broke the record set in 1999 by 3.0 percent.

Largely because of a 2.9 percent decline in the fourth quarter, carload freight fell by 0.5 percent for the year. During each of the first three quarters, carload traffic was slightly above year-earlier total.

"Despite continued growth in intermodal traffic, the 3.6 percent decline in U.S. rail carloadings in December, following the 3.9 percent November decline, reinforces the notion that the economy has quickly developed downward momentum which is what the Fed was trying to arrest when it cut interest rates earlier this month," said AAR Vice President Craig F. Rockey. "Harsh ice and snow storms in many parts of the country this month clearly compounded the general economy's impact on rail volumes," Mr. Rockey noted.

In all, 13 of the 19 commodity categories tracked by the AAR — including the top eight in terms of carload volume — saw declines in December 2000 compared with December 1999.

Commodities showing gains for the year included crushed stone, sand and gravel, up 3.9 percent; metals and metal products, up 3.8 percent; and motor vehicles and equipment, up 1.5 percent. Grain carloads were down 5.1 percent; coal fell 0.7 percent; and non-metallic minerals declined 6.6 percent.

"As we begin the new year, we're obviously hopeful that the uneasiness surrounding the economy will be shaken off and the weather stays reasonably cooperative, so that the railroads can continue to provide responsive cost-effective service to their customers in a growing and vibrant economy," Mr. Rockey said.