American railroads seek solace from consumer spending

US rail freight ended 2025 on an uneven note, as weakening intermodal volumes tempered modest annual growth across the wider network. Figures from the Association of American Railroads (AAR) indicate that total rail traffic for the year reached 14.5 million carloads and intermodal units, reflecting a slight increase of 1.2% compared to 2024.

However, intermodal volumes, which are crucial for railroads, experienced a decline of 3.5% year-over-year. This downturn is attributed to shifting consumer spending patterns and ongoing challenges in the supply chain. The AAR reported that carloads totaled 11.2 million, marking a 3.1% increase, while intermodal units fell to 3.3 million.

In December 2025, rail traffic showed signs of further decline, with total carloads and intermodal units decreasing by 5.4% compared to the same month in 2024. The AAR noted that this decline was primarily driven by a drop in intermodal traffic, which fell by 7.2% in December alone.

Despite these challenges, certain sectors within the rail industry showed resilience. Carloads of coal and agricultural products increased, with coal shipments rising by 4.6% and agricultural products by 2.3%. These gains helped offset some of the losses seen in intermodal volumes.

Looking ahead, railroads are focusing on adapting to changing consumer behaviors and enhancing their service offerings to capture more freight. The AAR emphasized the importance of innovation and investment in infrastructure to improve efficiency and reliability in the face of fluctuating demand.

As railroads navigate these challenges, the industry remains hopeful that a rebound in consumer spending will provide the necessary support for growth in 2026. The ongoing evolution of e-commerce and shifts in logistics strategies may also present new opportunities for rail freight moving forward.

source: railfreight.com