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12/3/2025
The Association of American Railroads' policy and economic teams has completed an analysis that shows how freight rail acts as a built-in stabilizer in the U.S. economy.
Amid rising transportation costs and supply chain stress, rail’s efficiency, predictability and resilience help buffer inflation and volatility, AAR concludes in the report.
Representing nearly 40% of long-distance freight by ton-miles, rail’s price stability delivers significant macroeconomic benefits — namely taming inflation, AAR officials said in a press release.
"Freight rail is more than a transportation mode; it is a critical tool for controlling costs, mitigating inflation and keeping our economy moving,” said AAR Senior Vice President of Policy and Economics Rand Ghayad. “This analysis shows those same advantages act as a shock absorber for consumers — keeping goods moving and costs predictable even during turbulent times.”
The analysis shows that railroads’ cost structure and operating model make them less vulnerable to volatility and better positioned to recover from supply chain shocks.
The analysis underwent external expert review to ensure methodological soundness and clarity of findings. Because rail primarily serves manufacturers for bulk and intermediate goods, cost fluctuations are less likely to reach consumers compared to trucking, which dominates last-mile and retail distribution, according to AAR.
Click here to read the full analysis.