Rail Carload Freight Down,
Intermodal Up in December

WASHINGTON, January 4, 2001 -- U.S. carload rail traffic fell 3.6 percent in December 2000 compared with December 1999, while intermodal traffic rose 3.3 percent, the Association of American Railroads (AAR) reported today.

U.S. carload traffic fell 45,229 carloads (to a total of 1.21 million) in December 2000 compared with December 1999. Notable carload percentage declines included metallic ores (down 17.7 percent, or 11,869 carloads), waste and scrap materials (down 14.6 percent, or 5,267 carloads),
and primary forest products (down 13.7 percent, or 2,974 carloads). Carloads of motor vehicles
and equipment fell 9.1 percent in December, while chemical and coal carloadings fell 4.9 percent and 0.2 percent, respectively.

All told, 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. Among commodities seeing gains in December were farm products other than grain (up 17.8 percent, or 1,220 carloads), nonmetallic minerals (up 11.8 percent, or 3,135 carloads), and grain mill products
(up 4.0 percent, or 1,310 carloads).

Intermodal traffic, which is not included in carload figures, rose to 641,240 units in December 2000 compared with 620,695 units in December 1999.

"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 with yesterday's interest rate cut," 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,"
Rockey noted.

For the fourth quarter of 2000, total carload traffic on U.S. railroads was down 2.9 percent(125,159 carloads). For the quarter, carload declines were led by metallic ores (down 18.7 percent,or 41,139 carloads), grain (down 7.8 percent, or 24,098 carloads), and chemicals (down 5.7 percent, or 21,908 carloads).

Commodities showing gains for the quarter include crushed stone, sand and gravel (up 2.0 percent, or 4,556 carloads), food and kindred products (up 2.5 percent, or 2,676 carloads), and grain mill products (up 2.2 percent, or 2,503 carloads). Intermodal traffic was up 2.3 percent in the fourth
quarter.

For the full year 2000, carload traffic on U.S. railroads was down only 0.5 percent (89,801 carloads), as relative strength earlier in the year offset declines near the end. Commodities showing
gains for the year included crushed stone, sand and gravel (up 3.9 percent, or 37,031 carloads);
metals and metal products (up 3.8 percent, or 26,539 carloads); and motor vehicles and equipment (up 1.5 percent, or 19,281 carloads). Grain carloads were down 5.1 percent (61,076 carloads),
coal fell 0.7 percent (48,812 carloads), and nonmetallic minerals declined 6.6 percent (29,826 carloads) for the year. U.S. intermodal traffic totaled a record 9.18 million units in 2000, a 3.0
percent increase (269,264 units) over 1999, when the previous record was set. Also setting a record in 2000 was total volume, which was estimated at 1.462 trillion ton-miles, up 1.7 percent
from 1999 when the previous record was established. This was the fifth consecutive record set for intermodal traffic and the third for ton-miles.

"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,"
Rockey said.