Canadian Pacific: Highest Rail Traffic Growth in Week 20

Canadian Pacific’s rail traffic

Canadian Pacific Railway (CP) recorded a 2.8% YoY (year-over-year) improvement in its overall rail traffic in Week 20. The company hauled 55,171 railcars, containers, and trailers in the week—compared to 53,691 units in Week 20 of 2018.

Canadian Pacific: Highest Rail Traffic Growth in Week 20

Among the seven Class I railroad companies, four recorded volume growth and three registered declines in Week 20. Canadian Pacific was the top volume gainer, while Canadian National Railway (CNI) was the fourth-best performer with volume growth of 0.1%. With a traffic decline of 4.2%, Union Pacific (UNP) was the worst performer.

Higher carload and intermodal volumes mainly drove the YoY increase in Canadian Pacific’s overall rail traffic. The company’s carload traffic grew 2.4% YoY to 34,327 railcars from 33,515 railcars in the same week the previous year. During the week, six of the seven Class I railroad companies recorded carload traffic gains. Kansas City Southern (KSU) registered the highest increase of 5.8%, while Union Pacific was the worst performer with a carload volume decline of 2.5%.

Canadian Pacific’s carload traffic, excluding coal and coke, grew 4.7% YoY to 28,401 railcars from 27,135 railcars. However, the company’s coal and coke traffic decreased 7.1% YoY to 5,926 units from 6,380 units in Week 20 of 2018.

During the week, Canadian Pacific registered volume growth across the potash, forest, energy, chemicals, and automotive commodity groups. The company recorded a volume decline across grain, coal, fertilizer and sulphur, metals, and minerals products.

Intermodal units

Canadian Pacific’s intermodal traffic rose 3.3% YoY in Week 20 to 20,844 containers and trailers from 20,176 units. During the week, except for Canadian Pacific, all of the Class I railroad companies recorded an intermodal volume decline. CSX (CSX) registered the highest intermodal volume decline of 11%.

Canadian Pacific shares have returned ~27.7% YTD (year-to-date) and outperformed the gains of the iShares Transportation Average ETF (IYT), which invests in the transportation companies in the Dow Jones Industrial Average. IYT has yielded a return of ~13% YTD.