Railroad Volumes Fall Again Amid Economic Pessimism
4/29/2009 -
Rail volumes fell again in the week ending April 18 as economic recession continues to take a bite out of railroads’ business, according to the Association of American Railroads.
Weekly rail volumes fell to 27.2 billion ton-miles, down 23.2 percent from the same week last year, the AAR reported. Weekly carload freight was 255,269 cars, down 24.3 percent from a year ago.
Rail volumes are watched closely by financial industry analysts, who say they are an indicator of the health of the nation’s economy.
Matthew Troy of Citigroup Investment Research said recent freight volume reports indicate the transportation sector is close to the bottom of its economic plunge. However, he said he doubted a recovery would occur soon.
Norfolk Southern Railway Chief Executive Wick Moorman agreed railroads are hitting bottom, but he was more upbeat on a recovery. He told analysts during a conference call that federal economic stimulus funding could help railroads begin recovering in the second half of this year.
Contact: Lauren Jones Sandberg, AAR, (202) 639-2528.
Weekly rail volumes fell to 27.2 billion ton-miles, down 23.2 percent from the same week last year, the AAR reported. Weekly carload freight was 255,269 cars, down 24.3 percent from a year ago.
Rail volumes are watched closely by financial industry analysts, who say they are an indicator of the health of the nation’s economy.
Matthew Troy of Citigroup Investment Research said recent freight volume reports indicate the transportation sector is close to the bottom of its economic plunge. However, he said he doubted a recovery would occur soon.
Norfolk Southern Railway Chief Executive Wick Moorman agreed railroads are hitting bottom, but he was more upbeat on a recovery. He told analysts during a conference call that federal economic stimulus funding could help railroads begin recovering in the second half of this year.
Contact: Lauren Jones Sandberg, AAR, (202) 639-2528.
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