Gloomy freight figures echo UK economy

Britain's rail freight market has shown signs of contraction for the financial year ending March 2026, with total freight moved dropping to 16,055 million net tonne kilometres, marking a 3% decline from the previous year. This downturn reflects ongoing fragility in several key sectors of the UK economy, as reported by the Office of Rail and Road (ORR).

Construction traffic, which constitutes nearly one-third of all rail freight, experienced the most significant decline, falling by 7% and reducing overall freight volumes by 398 million net tonne kilometres. The ORR noted that this decline is partly due to delays in processing planning applications under new tall building regulations, which have subdued urban high-rise development. Additionally, the reset of the HS2 high-speed rail programme has temporarily paused the movement of materials to construction sites, further impacting demand for rail-borne aggregates and concrete.

In terms of commodities, oil and petroleum traffic saw the steepest percentage decline, plummeting by one-third to 535 million net tonne kilometres. This figure represents the lowest annual total recorded since the ORR began tracking this data nearly three decades ago. The decline is attributed to significant structural changes within Britain’s refining sector, including the closure of the Grangemouth refinery in April 2025 and the cessation of operations at the Lindsey refinery in Lincolnshire in June 2025. These closures have substantially reduced fuel oil traffic.

International freight also faced challenges, declining by 19% to its lowest recorded level. This drop suggests weaker cross-border freight activity, although the ORR did not pinpoint a single cause. Factors such as ongoing disruptions to global shipping routes and the rerouting of container services around the Cape of Good Hope may have contributed to this decline. As supply chains continue to adjust, international rail volumes are likely to remain volatile in the coming months.

Despite these declines, intermodal traffic posted gains, indicating some resilience in specific segments of the rail freight market. However, the overall picture remains one of caution, as the broader economic context continues to exert pressure on freight volumes.