US railroads averaged nearly 297,000 intermodal containers and trailers a week in August, up 4.4% from a year earlier and a new monthly record, breaking the mark set in June. Carloads, not counting intermodal, averaged more than 235,000 a week, the most since October 2019 and the industry’s eighth straight year-over-year gain, per the Association of American Railroads.
A shipper now decides whether to keep shifting volume off trucks and onto rail as trucking costs keep climbing.
Year-to-date intermodal volume through August is also the highest on record. Fifteen of the 20 major carload categories rose from a year earlier. Combined carload and intermodal volume in August was the most in nearly eight years.
Strong rail service and higher trucking costs, including higher fuel, insurance and maintenance costs and fewer available drivers, are pushing more shippers onto rail, AAR said. Manufacturing growth is adding carloads in chemicals, metals and construction materials, and resilient consumer spending is keeping freight volumes up. Shippers have been converting freight from truck to rail through the year as truckload capacity tightened, with savings of 20% to 30% reported on some long-haul lanes, per ALS Industry Insights.
AAR said back-to-school demand and preparation for the holiday season should keep adding near-term support to volumes.
