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February 14, 2025 / Updated February 17, 2025
From News Releases
U.S. railroads finished strong in 2024 and are off to a good start this year, according to traffic data compiled by the Association of American Railroads.
For the first six weeks of 2025, total combined U.S. traffic was 2,857,828 carloads and intermodal units, an increase of 5.3 percent compared to last year. Intermodal carried the load with 1,613,771 units, up 9.7 percent from last year.
Intermodal dominated traffic last year with a 9.3 percent gain, making up for a 3 percent decline in carload traffic. Total combined traffic was 25,178,586 carloads and intermodal units, an increase of 3.4 percent compared to 2023.
For the week ending Feb. 8, carloads and intermodal units were up 3.7 percent from 2024.
Eight of the 10 carload commodity groups posted an increase compared with the same week in 2024. They included chemicals, up 1,274 carloads, to 34,390; nonmetallic minerals, up 1,271 carloads, to 27,904; and miscellaneous carloads, up 855 carloads, to 9,003.
Commodity groups that posted decreases compared with the same week in 2024 were coal, down 4,722 carloads, to 56,636; and metallic ores and metals, down 1,523 carloads, to 16,917.
Union Pacific Corp., the largest U.S. Class I railroad by freight volume, is riding a solid fourth quarter into 2025. UP finished the year at $6.7 billion net income, up from $6.4 billion in 2023.
“Our strong fourth quarter results represent a great capstone to a very successful year for Union Pacific,” chief executive officer Jim Vena said in January. “The team has fully embraced our strategy to lead the industry in safety, service, and operational excellence. That commitment has produced industry-leading financial results in 2024, punctuated by our strong finish to the year.
“We will carry this momentum into 2025 as we seek to unlock the full potential of the UP franchise.”
CSX and Norfolk Southern battled various challenges that didn’t favor the bottom line, but both are upbeat about 2025.
CSX faced traffic issues resulting from hurricanes and the Francis Scott Key Bridge collapse. Operating income for the year was $5.25 billion, down 5 percent from the previous year. Net income was $3.47 billion, or $1.79 per share, compared to $3.67 billion, or $1.82 per share, in 2023.
Fourth quarter revenue of $3.54 billion was down 4 percent year-over-year. Declines in fuel surcharge and coal revenue offset the effects of higher pricing and volume in merchandise and volume growth in intermodal.
“While 2024 had its challenges, I am proud of how the ONE CSX team responded,” said Joe Hinrichs, president and chief executive officer. “We managed through substantial impacts from major hurricanes and the Key Bridge outage early in the year and remained focused on delivering industry-leading customer satisfaction.
“We look forward to delivering on the profitable growth opportunities ahead of us.”
Norfolk Southern annual operating revenues were down $33 million to $12.1 billion, compared to 2023 but managed to boost income from railway operations over the previous year. Income was $4.1 billion, an increase of $1.2 billion, or 43 percent, compared to full year 2023.
Income increased $323 million, or 40 percent, in the fourth quarter despite a drop in revenue.
President and CEO Mark George commended employees for a robust finish.
“We closed 2024 with another quarter of solid performance, building on the success of Q3. Our network is running fast; our terminals are more efficient; and service metrics are steady. Our customers are noticing and rewarding us with more business,” he said. “I applaud all the employees of Norfolk Southern for what we are achieving together.” BNSF Railway has yet to report full year earnings.
