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Union Pacific’s Intermodal Traffic Dipped in Week 24

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Union Pacific’s intermodal volumes

The direction of Union Pacific’s (UNP) intermodal volumes stood in contrast to the direction of its freight volumes. The company moved ~75,000 containers and trailers, a 1.1% fall compared to the ~76,000 units it hauled in the same period in 2016. In the week ended June 17, 2017, Union Pacific’s container traffic fell 1% to 72,000 units, compared to 73,000 units in the week ended June 18, 2016. The company’s trailers contracted 3.3% in the reported week.

Compared to the overall rise in US railroad companies’ intermodal traffic, Union Pacific’s intermodal volumes moved in contrast.

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Union Pacific’s intermodal volumes

In 1Q17, Union Pacific’s intermodal volumes accounted for 37.5% of its total volumes, while its intermodal revenue contributed nearly 19%. UNP’s intermodal business normally competes with long-haul truck carriers such as J.B. Hunt Transport Services (JBHT), Swift Transportation (SWFT), and Knight Transportation (KNX).

Investing in ETFs

The transportation and logistics sector is a subgroup of the industrial sector. Investors with interest in transportation stocks may want to consider the iShares US Industrials ETF (IYJ). This ETF includes key US railroad companies (UNP) and major airlines (JBLU) in its portfolio.

In the next article, we’ll take a look at BNSF Railway’s freight traffic details in week 24.

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