Intermodal traffic on US railroads has hit record levels, according to the rail industry’s representative association.
The Association of American Railroads, which lobbies for the industry, expressed a qualified degree of satisfaction in their latest statistics review. The AAR, which monitors freight performance, said its members returned better than ever intermodal figures in the last month of 2024. However, the record number of boxes transported in any December was not equalled in other freight sectors. Some traditional bulk loads, notably coal, declined.
According to the monthly statistics from the AAR, December 2024 had the highest intermodal volume of any December in history. US rail containers and trailers volume in December 2024 averaged 273,122 units per week, the most ever for December and up 11.2% over December 2023. Year-over-year intermodal change was positive each month in 2024, claimed the Association.
Piggyback going out of fashion
In contrast to European railway systems, where passenger traffic greatly outnumbers freight movements, the US network is principally a freight railway. The numbers behind the industry are consequently large. According to AAR figures for 2024, US railroads originated 13.84 million containers and truck trailers — the most since 2021, and the third most ever (behind 2018 and 2021). That represents an improvement of 9.3% (1.17 million units) over 2023. Containers accounted for a record 96.3% of U.S. intermodal originations in 2024.
The North American phenomenon of road trailers ‘piggybacking’ on flatbed rail wagons may be declining, but it is still a large number. Extrapolating from the AAR figures, they account for 3.7% of intermodal traffic, or over 460,000 units. “Many of these containers were filled with imports or exports,” explained the AAR, alluding to a smaller proportion of domestic traffic. “The fact that port volumes were up by double digits in 2024 explains much of rail intermodal’s growth, especially on the West Coast.”
Economy on firm footing
The AAR provides its own analysis of the raw statistics. The Association compiles its Freight Rail Index (FRI), which measures seasonally adjusted intermodal volumes plus carloads excluding coal and grain. The FRI provides a broad perspective on rail performance and its relationship with the overall economy.
In December 2024, the FRI rose 2.2% from the previous month, reaching its highest point since January 2021. “This sustained upward trend indicates that, despite persistent manufacturing weakness and policy-related uncertainties, the broader US economy remains on relatively firm footing as we begin 2025,” said their statement.
Present good but future uncertain
Most goods consumed in the United States are produced far from end markets and require transport, observes the AAR. They say rail intermodal plays a key role in bringing manufacturers and consumers together. “The health of consumer spending, which accounts for approximately 70% of US economic output, is crucial to freight transporters like railroads,” said their latest report. “Spending on goods in November was up 3.4%, its biggest gain in a year, following 3.0% gains in September and October. Robust consumer spending has underpinned economic expansion over the past two years, serving as a pivotal support for rail volumes, particularly intermodal freight, throughout this period.
US rail intermodal volume in December 2024 averaged 273,122 units per week, the most ever for December and up 11.2% over December 2023. Year-over-year intermodal change was positive each month in 2024. However, the Association cautioned that the coming year had many variables. “Potential shifts in fiscal policy, trade, immigration, taxation and regulatory frameworks — alongside evolving monetary policy from the Federal Reserve — are contributing to heightened economic uncertainty as we enter 2025,” they concluded.