Behind Kansas City Southern’s Carloads in Week 27
Kansas City Southern’s freight traffic
Kansas City Southern (KSU), a US- and Mexico-focused railroad business, is the United States’ smallest Class I railroad in revenue terms. In the 27th week of 2017, Kansas City Sothern’s total freight railcar volumes (excluding intermodal) grew ~2.5% YoY (year-over-year). KSU moved ~24,000 railcars in the week ended July 8, 2017, compared with ~23,500 railcars in the week ended July 9, 2016.
This rise in total railcars was fueled by carloads other than coal and coke. KSU saw its carloads excluding coal and coke rise 6.1% YoY last week.
Interested in CSX? Don't miss the next report.
Receive e-mail alerts for new research on CSX
KSU reported a rise in volumes last week, which came in contrast with the slump posted by Mexican railroads. But the company’s rise was in line with the gains reported by other US railroads in the 27th week of 2017.
KSU’s coal traffic
KSU’s coal and coke carloads posted much higher volumes YoY (year-over-year) in 1Q17. However, coal volume growth, in percentage terms, declined in the second quarter of 2017.
In the week ended July 8, 2017, KSU posted an 11% fall in coal (CNX) and coke volumes. The company moved ~4,500 coal and coke railcars in the 27th week of 2017, compared with ~5,000 carloads in the same week of 2016.
Weekly changes in commodity groups
The advancing commodity groups in the week ended July 8, 2017, were:
- crushed stone, sand, and gravel
- petroleum products
- metals and products
- motor vehicles and equipment
- iron and steel scrap
The declining commodity groups in the same week were:
- chemicals and allied products
- waste and nonferrous scrap
The iShares Transportation Average ETF (IYT) has the highest holding in Kansas City Southern (5.7%) among all other ETFs. IYT also holds 10.3% in US trucking companies (JBHT) and ~25% in major railroads (CSX).
Next, we’ll look at KSU’s intermodal volumes.