America's railroads still move a staggering amount of freight, but they're hauling fewer carloads than they did two decades ago. The main reason is the collapse of a single commodity that once filled a huge share of the nation's trains: coal. This guide charts the long decline in U.S. rail freight carloads and explains what's driving it — and why railroads are reinventing themselves around different cargo.
How much freight moves by rail?
Railroads are the workhorses of heavy, long-distance freight, hauling roughly a million carloads a month of coal, grain, chemicals, autos, and containerized goods. The chart shows monthly carloads with a 12-month average to smooth the seasonal swings. The story it tells is a gradual decline from the mid-2000s peak — punctuated by the sharp drops of the 2008–09 recession and the 2020 pandemic, each followed by an incomplete recovery.
The long decline in carloads
Rail carloads peaked in the mid-2000s and have trended down since, even as the broader economy grew. That's unusual — freight usually rises with the economy. The disconnect points to a structural shift in what railroads carry, not just how much. The decline isn't a sign of a failing industry; it reflects the disappearance of one enormous category of cargo even as railroads chase new business in intermodal containers and other goods.
Why coal's collapse hit railroads
The single biggest driver is coal. For decades, coal was the largest commodity on American railroads — endless trains of it moving from mines to power plants. As coal-fired electricity collapsed (displaced by cheap natural gas and renewables), coal carloads fell off a cliff, taking a big chunk of total rail volume with them. No other cargo grew fast enough to fully replace it, which is why total carloads have sagged even as the economy expanded.
Rail vs. trucks
Railroads and trucks split America's freight, each with a niche. Rail dominates heavy, bulky, long-haul cargo — coal, grain, ore — where its fuel efficiency (a train moves a ton of freight hundreds of miles on a gallon of diesel) is unbeatable. Trucks own shorter, time-sensitive, door-to-door delivery. As coal faded, railroads leaned into intermodal traffic — shipping containers carried by rail then truck — competing for the goods flowing in through the ports. The future of rail freight depends on winning more of that container business.
Frequently asked questions
How much freight moves by U.S. rail?
Roughly a million carloads a month of coal, grain, chemicals, autos, and containers — though total carloads have declined from their mid-2000s peak.
Why is rail freight declining?
Mainly the collapse of coal, once the largest commodity on American railroads. As coal-fired power faded, coal carloads plunged and no cargo fully replaced them.
What do railroads carry?
Heavy, bulky, long-haul goods — coal, grain, ore, chemicals, autos — plus a growing share of intermodal shipping containers moving from ports inland.
Is rail more efficient than trucking?
For heavy, long-distance freight, yes — a train can move a ton of goods hundreds of miles on a single gallon of diesel, far more efficiently than a truck.
What is intermodal rail freight?
Shipping containers carried part of the way by rail and part by truck. It's the growth area railroads are chasing as coal volumes fade.