Rail Traffic Continues to Gain Momentum

Apr.30.10 | About: iShares Transportation (IYT)

The AAR is reporting another strong week of year over year gains in the rail industry. U.S. railroads originated 298,218 carloads during the week ended April 24. This was a 14.6% gain over the same week last year, but still down 10.8% from 2008. Intermodal traffic jumped 15.1% year over year and down 5.4% versus 2008 (click to enlarge).

rails4 RAIL TRAFFIC CONTINUES TO GAIN MOMENTUMClick to enlarge

The breadth of the traffic remains quite strong as all 19 commodity groups report year over year gains:

All 19 carload commodity groups were up from last year, led by gains in commodities associated with the steel industry: metallic ores, up 163 percent; metals, up 80.2 percent; waste and scrap, up 59.7 percent; and coke, up 12 percent. Other notable increases included 25.3 percent for motor vehicles and equipment; 45.2 percent for primary forest products; 22.8 percent for lumber and wood products; and 13.1 percent for chemicals. Grain was up 20.1 percent, and coal rose 6 percent.

Source: AAR