Intermodal weaker amid flat rail carloads

Grain leads all gainers in latest week

(Photo: Jim Allen/FreightWaves)

Key Takeaways:

  • U.S. weekly rail traffic was essentially unchanged, with a slight 0.4% year-over-year increase, influenced by summer slowdowns and decreased intermodal transport due to reduced trans-Pacific trade demand.
  • While total freight carloads increased by 4.5%, intermodal volume decreased by 2.9% year-over-year for the week ending June 21.
  • Several carload commodity groups saw growth, including grain, petroleum, and motor vehicles, but weaker import demand, particularly noticeable in decreased Mexican intermodal units, negatively impacted overall volume.
  • Cumulative U.S. rail volume for the first 25 weeks of 2025 showed a modest year-over-year increase, with carloads up 2.5% and intermodal units up 5.4%.

Total U.S. weekly rail traffic was flat for the latest week amid summer doldrums and weaker intermodal likely hit by falling demand on the trans-Pacific trade.

Volume was 487,328 carloads and intermodal units, up 0.4% compared with the same week a year ago, according to data from the Association of American Railroads.

Total freight for the week ending June 21 was 229,655 carloads, up 4.5% compared with the same week in 2024, while intermodal volume was 257,673 containers and trailers, down 2.9%.

(Chart: AAR)

Falling container rates on the eastbound trans-Pacific reflect softening China-U.S. demand, analysts said, which likely could be undercutting intermodal rail volumes.  

Seven of the 10 carload commodity groups posted an increase y/y. They included grain, up 22.9%; petroleum, 7.9%; and motor vehicles and parts, 7.4%.

The non-metallic minerals category was weaker by 1.7%. 

For the first 25 weeks of this year, U.S. railroads reported cumulative volume of 5,480,340 carloads, up 2.5% y/y, and 6,717,132 intermodal units, up 5.4%.

Total combined U.S. traffic was 12,197,472 carloads and intermodal units, an increase of 4.1%.

North American rail volume for the week on nine reporting U.S., Canadian and Mexican railroads totaled 336,048 carloads, up 3.5%, and 343,777 intermodal units, down 0.8%. Total combined weekly rail traffic was 679,825 carloads and intermodal units, up 1.3%. North American rail volume for the first 25 weeks of 2025 was 16,860,018 carloads and intermodal units, up 2.8% compared with 2024.

Weaker import demand may have taken a toll as Mexican railroads reported intermodal units fell 10.7% for the week.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.