Breaking

Rail Traffic Slips Into Negative Territory as Economic Headwinds Mount

North American rail traffic declined year-over-year in week 36, marking the first contraction since early February and snapping months of gains. The pullback signals broader economic weakness across freight markets. Stripping out coal and grain, industrial carload volumes fell 5 percent. Chemical and petroleum shipments—the second-largest commodity category—dropped the same amount. Automobile carloads tumbled nearly 19 percent. Grain, forest products, and metals showed gains. Class I executives acknowledged rising fuel costs are driving modal conversion from trucking to rail, but cautioned the same pressures could suppress consumer demand. Norfolk Southern reported increased carload traffic from trucks in lumber, steel, and metals. International intermodal volumes in the East face headwinds as shippers increasingly route cargo through West Coast ports for cost advantages.