U.S. Rail Traffic in May reflected both progress and caution, with carload shipments growing while intermodal volumes slowed amid economic uncertainty. This is reported by the railway transport news portal Railway Supply.

U.S. Rail Traffic in May reflected both progress and caution, with carload shipments growing while intermodal volumes slowed amid economic uncertainty
Source, photo: www.logisticsmgmt.com

Carload totals hit 897,154 units in May, a 5.9% increase year-over-year, supported by gains in 13 of 20 commodity groups. However, the pace trailed April’s 6.2% growth, which marked a 17-month high.

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Weekly carload volumes averaged 224,000—slightly under previous months—but still pointed to a steady freight flow across the U.S. Rail Traffic network.

Intermodal traffic continued its 21-month growth streak, rising 0.6% to 1,037,766 containers and trailers. But that growth rate was the lowest since 2023, suggesting softer demand for consumer goods and weaker trade.

Average weekly intermodal loadings dipped to 259,400 units, their lowest in a year and only marginally above the 10-year May average.

Freight Rail Index Reflects U.S. Rail Traffic Pressure

The AAR’s Freight Rail Index dropped 3.2% from April to May—the largest decline in five months. This reflects broad economic softening in categories like consumer goods and intermediate materials.

According to AAR Chief Economist Rand Ghayad, rail data offers reliable economic insight. He said strong carload volumes point to industrial resilience, while intermodal weakness raises concerns about external demand and inventory buildup.

U.S. Rail Traffic Outlook Hinges on Key Economic Trends

Despite concerns, AAR highlighted potential tailwinds. Strong volumes in coal, grain, and chemicals, combined with stable employment, could support freight demand in the coming months.

Still, persistent challenges remain. Flat factory output, high inventories, and a weak housing market continue to weigh on intermodal recovery and overall shipping activity.

AAR advises rail stakeholders to watch labor data, manufacturing, housing trends, and trade flows to adapt to shifting market dynamics. These indicators will guide how U.S. Rail Traffic and the broader economy evolve through late 2025.

Source, photo: www.logisticsmgmt.com

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