AAR: U.S. freight railroads logged modest traffic growth in August

U.S. freight railroads logged "modest" traffic growth in August compared to last year's level, the Association of American Railroads' reported in its monthly "Rail Industry Overview." 

Last month, intermodal shipments climbed 0.5% compared to August 2024, with an average weekly intermodal volume of 284,316 containers and trailers — the most for any month since May 2021 and the most for August since 2018.

For the first eight months of 2025, intermodal shipments totaled 9.47 million units, a 4.1% increase over last year. Intermodal volume has remained steady over the past two years, but the sector remains vulnerable to changing consumer spending habits, global trade and policy changes, AAR officials said.

Meanwhile, carload volume rose 0.7% in August over last year. The average number of carloads in August was 230,184, the most for any month since October 2022, AAR officials said.

Of the 20 carload commodities tracked monthly by AAR, 11 posted year-over-year growth in August. Key gainers include grain, up 1.7%; coal, up 0.9%; chemicals, up 1.1%; and primary metal products, up 8.3%. 

While rail volumes in August point to supply chain resilience, the broader economy remains "fragile," AAR officials said.

Manufacturing output is an indicator of cargo traffic growth. The Institute for Supply Management's Manufacturing Purchasing Managers' Index (PMI) was 48.7% in August, up slightly from 48% in July but still below 50%, the line between manufacturing growth and shrinkage, AAR reported. Along with fewer manufactured items being shipped by rail, declining manufacturing also indicates the potential for fewer carloads of products used in production processes.

The full report from the AAR can be read here.