AAR: Carload gain continued, intermodal volume rebounded in July

Despite recent economic data pointing to mounting headwinds, U.S rail volumes are holding up, indicating the movement of goods remains resilient, according to the Association of American Railroads' latest "Rail Industry Overview" report.

Looking ahead, sustained pressure on labor markets and consumer demand could eventually weigh on freight activity, according to the report, which examines economic and freight-rail trends for July and the first seven months of the year.

Total U.S. carloads in July rose 4.6% over July 2024's count, the fifth-straight monthly increase, according to the AAR. Fifteen of the 20 carload categories tracked by the AAR logged gains last month, the most since December 2023. Total carloads averaged 224,568 per week, the most in a July since 2019.

Through the first seven months of 2025, total carloads were up 2.8%, or nearly 186,000 carloads, over the same period last year.

Meanwhile, U.S. rail intermodal shipments rebounded in July, rising 2.4% and reversing a 2.9% decline in June — intermodal’s first year-over-year decline in 22 months. Intermodal originations in July averaged 270,175 units per week, the second most ever for a July, trailing only July 2018.

Through seven months, U.S. intermodal volume totaled 8.33 million units, up 4.7%, or 371,000 units, year over year.

Several factors likely contributed to intermodal’s dip in June and recovery in July, according to the AAR. A drawdown in business inventories during the second quarter suggests many firms were selling off stockpiles rather than placing new orders in June, temporarily dampening freight demand, the AAR report states.

Also, a decline in U.S. imported goods in June weighed on intermodal volumes, which rely heavily on containerized imports from ports. As inventories thinned and port activity normalized, intermodal volumes recovered in July, the report states.