The slowdown in rail traffic is the result of a broad-based industrial downturn that is hitting American manufacturers, originating from Asia and Europe as a global synchronized structural decline. Trade disputes between the US and China have accelerated the downturn on almost every continent, sending world trade volumes lower.

Total carloads for the week were 261,706 carloads, declined 3.5% YoY, while US weekly intermodal container volume was 272,792 for the week, slipped 5.3% YoY

About 70% of carload commodity groups posted negative YoY change versus the same week in 2018. Only nonmetallic minerals, petroleum and petroleum products, and "other" posted gains for the same week in 2018.

For the first 30 weeks of 2019, railroads reported the cumulative volume of 7,549,879 carloads, down 3.2% from last year. Intermodal containers for the first 30 weeks posted 7,963,475 units, down 3.6% from last year. All rail traffic combined for the first 30 weeks this year was 15,513,354 carloads and intermodal container units, a drop of 3.4% compared to last year.

One of the main reasons behind the sudden rail decline in the US could be the broad-based industrial slowdown that started shifting US manufacturing PMIs lower in late 2018.

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