Photo via FreightWaves
According to FreightWaves, US intermodal rail volume experienced a robust 10% increase last week, extending a strong growth trajectory for the sector. The surge in freight movement reflects continued demand for rail transportation across major corridors, signaling ongoing strength in domestic logistics networks.
The volume expansion, however, comes at a cost: major railroads are reporting significant network slowdowns and speed reductions. Some carriers have experienced train speeds decline to 10-to-20 month lows, indicating that rail infrastructure is struggling to accommodate the heightened traffic volumes without operational degradation.
The contrast extends beyond US borders. Canadian intermodal volumes are declining during the same period, creating a divergence in North American rail performance that underscores differing demand pressures between the two countries. The combination of rising US volumes and slower transit times may prompt industry stakeholders to reassess capacity and operational efficiency strategies.
