ARCHIVE

Coal rail loads hit low point: EIA

WHILE US coal exports are at their highest point in more than two decades, domestic supply has no...

Donna Schmidt
Coal rail loads hit low point: EIA

For the period ended March, US coal train carloads dropped to 1.55 million, the lowest level of any quarter since early 1994.

The EIA cited the deflated electricity generation demand for the drop, as the nation’s power sector made up 90% of total consumption.

Interestingly, as coal rail loads have dropped, the total share of rail for coal transport has grown from about 65% in 1994 to more than 70% today.

The EIA said the rise of activity and demand was primarily due to the increased use of low-sulfur coal, output produced in the Powder River Basin region of Wyoming.

“Rail is the most common method for transporting large volumes of western coal over long distances to power plants located in the eastern half of the United States,” the federal agency said.

Also playing into the numbers is the recent sharp decrease in coal-fired generation at US power plants for which natural gas prices have played a role, as has a mild overall US winter.

Not helping, of course, are recently proposed greenhouse gas emissions regulations from the US Environmental Protection Agency.

If passed, the outlines could severely restrict the future of new coal-fired facilities.

A cumulative report released earlier this month from the Association of American Railroads foreshadowed the news with confirmation that while overall intermodal shipments by rail had generally been on the rise, coal continued to be one of its worst performers.

For the period ended March 24, just prior to quarter-end, the AAR said US intermodal shipments via rail were up 4.2% versus the same period of last year.

However, carload traffic was down 7.2% and coal volumes plunged 17.4% year-on-year.

The group said that over the first 12 weeks of this year, total intermodal traffic increased 2.4% year-on-year while carload volumes fell 2.2%.

Coal’s performance was also down during that period, falling 9%.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production