US-Canada pulp and paper freight drops 5.1% in October from 2010; labor deadline looms

By James McLaren, Senior Editor, PPI Pulp & Paper Week, RISI

SAN FRANCISCO, Nov. 7, 2011 (RISI) - Combined US-Canada pulp and paper rail freight in October was down 5.1% from a year ago and 1.1% higher than October 2009, the Assn of American Railroads reported. US traffic for the month was down 0.8% and was 4.4% higher than in 2009. Canada was down 12% and 4.2% respectively.

For the latest week ending Oct. 29, North American pulp and paper rail freight, including Mexico, was 5.8% lower than 2010 to 9,069 carloads, AAR showed. Year-to-date volume at 411,704 carloads was 3.2% higher than the same 43 week period of 2010.

US-Canada lumber and wood products freight in October was 16% higher than 2010 and 28.6% above 2009. Primary forest products was higher by 5.8% and 0.3% respectively.

Total US-Canada rail freight in October was up 2.4% from 2010 and 11.4% higher than in 2009.

As a Dec. 6 labor deadline loomed, US rail carriers and unions were considering a proposed 18.6% wage increase over six years recommend by a panel selected by President Obama. Unions were seeking a 19% increase over five years and carriers were looking for 17% over six years, Bloomberg reported on Monday.

A walkout or lockout would cost the US economy $2 billion daily.