MOSCOW (MRC) -- North American chemical railcar traffic fell by 3.3% year on year for the week ended 15 January, as a small increase in US shipments was more than offset by declines in Canada and Mexico, according to the latest data from the Association of American Railroads (AAR).
The decline followed a 6.7% decline in the previous week, ended 8 January. For the first two weeks of 2022, ended 15 January, North American chemical railcar loadings were down 5.0% year on year to 91,437.
In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.
Total North American freight railcar traffic for the week fell by 5.3%. With the exception of coal and nonmetallic minerals, shipments fell in all the major commodity categories AAR is tracking.
As per MRC, North American chemical railcar traffic for the week ended 8 January fell by 6.7% year on year to 45,325 loadings, with decreases in all three countries - the US, Canada and Mexico. In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.
We remind, oil prices on Tuesday climbed to their highest since 2014 as investors worried about global political tensions involving major producers such as the United Arab Emirates and Russia that could exacerbate the already tight supply outlook. The risk added a premium to prices during the session. Brent crude futures rose USD1.03, or 1.2%, to settle at USD87.51 a barrel. US West Texas Intermediate (WTI) crude futures ended USD1.61, or 1.9%, higher at USD85.43 a barrel.
MRC