North American chemical rail traffic plummeted during the week ended Aug. 24 as Canada’s two largest railroads embargoed shipments in preparation for a labor dispute-related shutdown that began on Aug. 22. Operations were renewed the same day after the Canadian government intervened to impose binding arbitration.

Chemical railcar volume in North America totaled 41,785 carloads, down 14.9% from the previous week and down 9.3% year over year, according to new data from the Association of American Railroads (AAR). The four-week moving average (4wma) came to 47,005 carloads: down 3.3% sequentially, up 3.0% year over year, and up 5.8% from the seasonal trendline, as represented by the average for 2014-23.

In the US, 4wma chemical railcar volume came to 32,895 carloads: down 0.9% sequentially, up 6.8% year over year, and up 4.1% from the region's seasonal trendline. In Canada, 4wma chemical railcar volume came to 13,107 carloads: down 9.1% sequentially, down 6.4% year over year, and up 11.1% from the trendline. In Mexico, 4wma chemical railcar volume came to 1,004 carloads: up 0.4% sequentially, up 19.6% year over year, and down 5.6% from the trendline.

For the year to date, chemical railcar volume in North America is up 4.1%, while total railcar volume is down 3.2%. US chemical railcar volume is up 4.3% on the same basis, while Canadian chemical railcar volume is up 3.7%, and Mexican chemical railcar volume is up 5.0%.

Source:Chemweek