10/20/2026
October Rail Industry Overview, the third quarter of 2026 was the best quarter ever for U.S. intermodal.
High diesel prices and fewer truck drivers are pushing more freight onto the rails, and the numbers just hit a record.
According to the Association of American Railroads' October Rail Industry Overview, the third quarter of 2026 was the best quarter ever for U.S. intermodal. A record August was followed by a strong September, when railroads originated nearly 295,000 intermodal containers and trailers per week, only slightly below August's record despite the Labor Day holiday. The AAR credits record-high diesel prices, an exodus of truck drivers driven by both market and regulatory factors, and generally strong railroad service levels.
The strength goes beyond intermodal. September was the ninth straight month of year-over-year carload gains, and 17 of the 20 carload categories the AAR tracks rose, the most in five years. Excluding coal, carloads grew 4.4%, which the AAR says is faster than the overall economy. Steel carloads were the highest in five years in August and September, chemical carloads set a September record at nearly 33,200 per week, and coal carloads fell for the seventh straight month. The AAR's Freight Rail Index reached its second-highest level ever in September, and its Q3 average was a record. Railcars in storage fell to 17.7% of the fleet, the lowest share since April 2023.
Supporting the volume, inflation-adjusted spending on goods was up 2.7% in August, and the ISM Manufacturing PMI stayed above 50 for a ninth straight month.
The AAR is the railroads' trade group, and it notes real risks remain, including inflation, high energy prices, weak consumer confidence and geopolitical tension, and that conditions can change quickly. Still, for shippers it's a clear signal that intermodal is becoming a bigger part of the mix, which puts a spotlight on terminal, drayage and chassis capacity.
How much of your freight has shifted to rail this year?
🔗 https://www.aar.org/rail-industry-overview/