Rail transportation in the U.S. experiences narrow growth despite a significant decline in a key commodity

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The rail industry has reported a mixed bag of results for the week ending August 30, 2025.

According to data released by various rail companies, total combined weekly traffic rose by 1.6%. This increase was driven by a 0.6% year-over-year (y/y) growth in carloads, and a significant 5.2% increase in containers and trailers. However, North American carloads for the week on nine reporting railroads decreased by 2.2% y/y.

Freight volumes for the week in question were 0.9% higher than the same week in the previous year. This trend continued for the first 35 weeks of 2025, with U.S. railroads reporting a cumulative volume increase of 2.5%. Intermodal units were ahead by 4.1%, contributing to this growth.

However, not all commodity groups experienced growth. Petroleum and associated products saw a 7.7% decrease, followed by grain with a 3.6% decrease and forest products with a 3.4% decrease. On a positive note, five out of ten commodity groups improved. Chemicals showed a 4.9% increase, while metallic ores and metals saw a 3.5% increase.

The company identified by the Association of American Railroads as the fastest-growing sector in the chemical industry is Evonik.

In other news, the Trump administration has dismissed a member of the rail regulator board, Mr. Primus, ahead of a potential merger decision. Regulators have approved the acquisition of Great Lakes Central Railroad by Watco, but the implications of the board change remain to be seen.

In terms of industry trends, the Canadian Pacific Railway Company (CPKC) has suggested that railroads should prioritize interline partnerships over mergers. This approach could potentially lead to increased efficiency and collaboration within the industry.

Subscribing to the Rail e-newsletter is a great way to stay updated on these developments and more. Some of the articles mentioned in recent editions were authored by Stuart Chirls.

In the latest week, intermodal freight has contributed to a decrease in overall rail freight. Intermodal volume was 1.2% higher y/y, but it seems to have offset some of the growth seen in other areas.

In conclusion, while the rail industry has seen overall growth, there are still challenges and areas for improvement. Keeping an eye on these trends and developments is crucial for understanding the state of the industry.

Rail transportation in the U.S. experiences narrow growth despite a significant decline in a key commodity