Rail Freight Transportation Today

Today's freight railroads are considered faster, safer, and more efficient than ever. The Association of American Railroads (AAR) points out that the railroads together provide a cost effective system that ties local businesses together into one national economy - from farmers and manufactures, to e-commerce companies that need fast delivery. Over the past decades the railroad industry has continued to invest in new tracks, modern locomotives, freight cars and new communication systems to make the rail system "cleaner, greener and safer."

According to the AAR, a total of 562 common carrier freight railroads were operating in the United States at the end of 2005. These railroads employed approximately 187,000 workers, with an average wage of $66,975 and total compensation of nearly $91,000.

Major Freight Railroad Companies - Class 1 Railroads:

Today railroad companies are classified by the U.S. Interstate Commerce Commission on the basis of gross revenue. The largest are considered Class I Railroads. The Class I railroads account for 68 percent of the mileage operated and 93 percent of freight revenue. The Class 1 railroads primarily provide long-haul, high-density intercity transportation. This list includes:

Canada Class 1 Freight Railroads:

Mexico Class 1 Freight Railroads:

Regional and Short Line Railroads:

North American Regional Railroads are typically Class II railroads. As of 2011, a railroad with revenues greater than $37.4 million but less than $433.2 million for at least three consecutive years is considered Class II. North American Short Line Railroads are typically Class III railroads, earning less than 37.4 million anually. Class II and Class III railroads include:

The AAR includes 30 regional railroads, which are linehaul railroads with at least 350 route miles and/or revenue over $40 million; 320 local linehaul carriers which operate less than 350 route miles and earn less than $40 million; and 203 switching and terminal carriers that primarily provide switching and terminal services.

Type of Freight Carried by Class 1 Railroads for 2003 and 2013:

Commodity Group 2003 Tons Originated 2003 Percent
of Total		 2005 Tons Originated 2005 Percent
of Total		 2013 Tons Originated 2013 Percent
of Total
Coal 784,042 43.6 804,139 42.4 693,788 39.5
Chemicals & allied products 163,018 9.1 167,199 8.8 176,357 10.0
Farm products 141,324 7.9 140,441 7.4 130,479 7.4
Non-metalic minerals 132,552 7.4 145,697 7.7 142,243 8.1
Misc. mixed shipments* 103,875 5.8 119,835 6.3 115,138 6.6
Food & kindred products 102,114 5.7 102,191 5.4 100,179 5.7
Metals & products 55,166 3.1 57,851 3.0 50,142 2.9
Stone, clay & glass products 51,046 2.8 55,231 2.9 44,788 2.5
Petroleum & coke 47,968 2.7 55,611 2.9 46,147 2.6
Lumber & wood products 47,466 2.6 47,603 2.5 26,593 1.5
Waste & scrap materials 41,497 2.3 47,345 2.5 40,063 2.3
Pulp, paper & allied products 38,543 2.1 38,242 2.0 33,034 1.9
Motor vehicles & equipment 34,314 1.9 35,585 1.9 20,233 1.2
Metalic ores 32,693 1.8 59,941 3.2 72,067 4.1
All other commodities 23,448 1.3 21,810 1.1 27,137 1.5
Total 1,799,066 100 1,898,721 100 1,757,650 100

* Miscellaneous mixed shipments (STCC 46) is mostly intermodal traffic. Some intermodal traffic is also includedin commodity-specific categories. STCC 46 accounts for about two thirds of intermodal tonnage. Source: Association of Americal Railroads.

Class I Railroad Traffic:

  2002 2003 2004 2005 2011 2012 2013
Carloads Originated (million) 27.90 28.87 30.09 31.14 30.00 28.37 28.83
Intermodal Units (million)*:              
         Containers 6.75 7.33 8.07 8.71 10.19 10.75 11.33
         Trailers 2.40 2.63 2.93 2.98 1.7 1.52 1.51
         Total 9.15 9.96 10.99 11.69 11.89 1.760 1.758
Tons Originated (million) 1,767 1,799 1,844 1,899 1,885 1,760 1,758
Ton-miles (million) 1,507,000 1,551,000 1,663,000 1,696,000 1,729,000 1,713,000 1,741,000

Source: Association of Americal Railroads.
* Includes 1 regional railroad and excludes Canadian-owned Class 1 railroads.

For additional Information:

Association of American Railroads website.

 

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 DigitalNetExpress.com Photo courtesy BNSF, text by Richard Boehle, freight and traffic information courtesy Association of American Railroads.
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