America’s Rail Network Is Heating Up: Freight Volumes Rise for Third Consecutive Week

Rail freight activity in the United States maintained a steady upward trajectory in late February 2026, marking the third week in a row of growth. According to data published by the Association of American Railroads (AAR), overall rail volumes showed a modest year-over-year improvement despite mixed performance between traditional freight carloads and intermodal shipments.

For the week ending February 28, 2026, total U.S. rail traffic reached 516,729 combined units, including both railcars and intermodal containers. This represents a 1.6% increase compared with the same week in 2025.

The continued rise follows stronger increases recorded in the previous two weeks. Traffic during the week ending February 21 grew by 10.7%, while the week ending February 14 showed a 6.2% improvement. These consecutive gains indicate strengthening freight demand in several major commodity sectors.

Carload Shipments Lead the Growth

The biggest contributor to the overall increase came from traditional railcar shipments, which moved goods such as agricultural products, coal, chemicals, and industrial materials.

During the final week of February, U.S. Class I railroads transported 238,131 carloads, representing a 6.9% increase from the previous year. The rise in these shipments played a critical role in balancing the decline seen in intermodal freight.

Intermodal traffic which consists of shipping containers and trailers moved by rail, totaled 278,598 units. This segment recorded a 2.5% decrease compared with the same week in 2025.

Despite the drop in intermodal volumes, the strong growth in railcar shipments allowed overall rail traffic to remain positive.

Strong Performance Across Most Commodity Groups

Freight demand improved in eight out of ten major commodity categories, showing broad-based growth across the rail freight network.

Some of the most notable increases included:

• Grain shipments, which rose by 4,210 carloads, reaching 25,210 total units.
• Coal traffic, increasing by 3,864 carloads to 63,950 units, reflecting ongoing demand for energy resources.
• Chemical products, which added 2,900 carloads, bringing the total to 36,642 units.

However, not all sectors experienced growth. Two categories posted modest declines:

• Forest products, which fell by 427 carloads to 7,905 units.
• Miscellaneous freight, dropping by 302 carloads to 8,599 units.

Overall, the gains in key industrial and agricultural commodities outweighed the smaller decreases in other categories.

Year-to-Date Rail Freight Shows Positive Trend

Looking at the first eight weeks of 2026, cumulative U.S. rail freight data also points toward steady expansion.

During this period:

• Total carload shipments reached 1,762,504, representing a 5.5% increase compared with the same period in 2025.
• Intermodal shipments totaled 2,191,101 units, showing a 1% decline year-over-year.

When combined, total rail freight for the first two months of 2026 reached 3,953,605 units, marking a 1.8% overall increase from the previous year.

This trend suggests the rail industry is experiencing gradual but consistent growth, driven primarily by traditional freight sectors.

North American Rail Network Shows Similar Pattern

Rail traffic across the broader North American network also experienced moderate growth during the same period.

Data covering nine major railroads operating in the United States, Canada, and Mexico showed a combined total of 711,817 carloads and intermodal units for the week ending February 28.

Breaking down the figures:

• Carloads: 345,406 units, representing a 4.1% increase from the previous year.
• Intermodal shipments: 366,411 units, showing a slight 0.1% decline.

Overall, total rail traffic across North America increased 1.9% year-over-year during the week.

For the first eight weeks of 2026, North American railroads collectively handled 5,442,179 units, marking a 2.5% increase compared with 2025.

Canada Posts Strong Intermodal Growth

Canadian railways recorded a positive performance, particularly in intermodal freight.

For the week ending February 28:

• Carload shipments: 93,668 units, up 2.5% year-over-year.
• Intermodal shipments: 74,256 units, rising 11.3%.

In total, Canada handled 1,274,116 rail shipments during the first eight weeks of the year, representing 2.5% growth compared with the same period in 2025.

The strong expansion in container traffic highlights increasing cross-border and international trade activity through Canadian rail corridors.

Mexico Records Mixed Results

Rail freight activity in Mexico presented a more uneven performance.

During the final week of February:

• Carload shipments dropped 22.5%, totaling 13,607 units.
• Intermodal shipments declined 4.5%, reaching 13,557 units.

Despite the weekly decline, Mexico’s cumulative rail traffic for the first eight weeks of 2026 reached 214,458 units, representing a 17% increase compared with the same period last year.

This suggests that while short-term fluctuations occurred, overall rail freight demand in Mexico has remained strong in early 2026.

Outlook for Rail Freight in 2026

The steady improvement in rail traffic across multiple weeks indicates resilient freight demand in North America, particularly in traditional bulk commodities such as grain, coal, and chemicals.

While intermodal shipments have shown some softness in the United States, strong carload growth and expanding Canadian container volumes continue to support overall rail traffic gains.

Industry analysts expect rail freight activity to remain closely tied to industrial production, energy demand, and agricultural exports throughout the year.

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