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AAR's report on mixed rail volumes for July 2023 offers insights into the complex economic trends in the U.S., reflecting both optimism and caution.
The Association of American Railroads (AAR) reported mixed results for July 2023 rail volumes, indicating varied trends in the U.S. economy. During the three weeks not including Independence Day, the highest-volume intermodal weeks of the year were recorded, suggesting robust economic activity in certain sectors. However, there was an "exceptionally weak" period for grain carloadings, an essential part of the agricultural supply chain, possibly implying challenges in the farming sector.
Overall, U.S. Class I railroads hauled 875,660 carloads last month, a slight decrease of 0.6% from July 2022, and 967,553 containers and trailers, a substantial decrease of 5.5%. AAR Senior Vice President John T. Gray noted that while these figures do suggest economic vibrancy in some areas, the decline in other sectors warrants caution.
Source: Railway Age
Whenever we see a market development that surprises us (ie volume increases in trucking), we look at other independent datasets to see how they are reacting.
— Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) August 5, 2023
One of those is weekly intermodal activity, which was telling a similar story - it is breaking away from seasonal lulls.… https://t.co/U0uPCS736V
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Plus: FMCSA broker pay rule takes effect, USA Truck returns to private ownership global trade slows; costs stay high
Plus: USDOT audits CDL oversight, truckers rally behind Trump’s emissions rollback, Amazon faces union pressure, and more in today’s newsletter.
Freight brokers face Q4 turbulence with tariffs, the end of de minimis, an 80% USPS traffic collapse, and a proposed $85B rail merger.
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