The Association of American Railroads (ARR) has turned the spotlight on safety within the industry. The release of 2024 data from the Federal Railroad Administration (FRA) coincided with the monthly state of the freight address from the association. Their figures gave some reassurance to the overall American economy, in the face of mixed performance across several sectors.
Intermodal growth continues in the American railroad industry, according to analysis from the AAR. Their monthly figures for February posted very respectable figures, up more than 6%. That more than offset a decline of about half that percentage in manufactured goods transported by rail. The cloud on the horizon remains the global trade position and, as the AAR puts it, “changes in trade policy” – a veiled warning over the unpredictability of the current US government and the ability to derail plans without warning.
Focus on a safer future
While the domestic political scene may be proving hazardous, the tangible hazards of working in the industry have fallen significantly. That conclusion is drawn from figures provided by the Federal Railroad Administration. The FRA reported the positive impact of ongoing investments in innovation, infrastructure, and workforce expertise on rail safety. Class I railroads set a record-low injury and fatality rate for the second consecutive year, reinforcing their commitment to employee safety.
Industry-wide, the train accident rate has dropped 33% since 2005 and 15% in the past year alone. “A relentless safety culture and sustained private investments continue to make railroads safer for both the communities they serve and rail employees,” said Ian Jeffries, the AAR President and CEO in his monthly report. “Railroads remain focused on an even safer future, and 2024 results demonstrate real progress.”
Rush to beat the tariffs
In February, intermodal performance was again strong, says the AAR. Volume rose 6.4% (66,340 units) year-on-year. “Originations averaged 276,654 units per week, the most ever for a February,” said their commentary. “This strength reflects solid consumer spending and, in part, efforts by some importers to expedite shipments in anticipation of tariffs.”
In the first two months of 2025, total intermodal volume rose 8.5%, and container volume rose 9.5%. The year-to-date container volume was the highest ever for this period. “Continued intermodal growth will depend on sustained consumer spending, which hinges on a robust labour market and could be shaped by changes in US trade policy, added the AAR. It should be noted that total intermodal volume includes containers and trailers transported shuttle-style on flatbed rail cars.
Energy policy favours long term coal traffic
Unlike most European markets, notably in the UK, coal remains by far the highest-volume carload commodity on
US railroads. While the commodity has been in decline, the sharp fall in February (down 8.2%) skewed overall figures for carload freight. According to figures from US sources, coal’s share of U.S. electricity generation fell to 15.2% in 2024, the lowest in modern times.
However, despite a fourteen-month streak of declining volumes, there is no possibility of coal leaving the US energy mix, and therefore plenty of work for railroads in the foreseeable future. Electricity generation was at a record high in the US in 2024. “Some previously scheduled coal plant shutdowns have been delayed or cancelled,” said the AAR. “This won’t reverse coal’s long-term decline, but it could lead to incremental increases in rail coal shipments.”