What’s behind Canadian National Railway’s Freight Volume Growth?
CNI’s railcars in week 34
Canada’s largest freight rail carrier, Canadian National Railway (CNI), continued its positive freight change in the week ended August 26, 2017. The company’s carloads were up 10.1% to 63,000 railcars in the same week from over 57,000 railcars in the week ended August 27, 2016. Undoubtedly, CNI remains a star performer in volume growth among its Class I peers in 2017.
Much of the volume growth for Canadian National Railway was driven by a ~12% rise in carloads other than coal (ARLP) and coke to ~57,000 compared with around 51,000 units in the same week last year. The coal and coke railcars fell 4.4% to 8,000 carloads in the reported week against 6,300 units last year.
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For Canadian National Railway, the percentage rise in railcars was much higher compared with US railroads. When compared with Canadian railroads, the same rise was in line with the trend.
Advancing and declining commodity groups
The commodity groups with higher volumes in week 34 were petroleum products, metals and minerals, and automotive (TM). On the other hand, lumber and wood products, primary forest products, pulp and paper products, farm products, and grain mill products saw lower shipments in the same week.
CNI’s intermodal traffic
You should note the rise in Canadian National’s intermodal volumes percentage-wise has been the highest in the Class I railroads (XLI) in 2017. In the 34th week too, Canadian National’s intermodal traffic was solely represented by containers. CNI’s intermodal traffic rose 16.5% to ~52,500 containers from 45,000 units in the corresponding week in 2016.
In the 34th week of 2017, the company’s intermodal growth was much higher compared with US railroads. However, the metric was in line compared with the rise reported by Canadian Railroads in the same category.
In the final part, we’ll review Canadian Pacific Railway (CP).