KEY FACTS

• Freight railroads are a critical link in the supply chain that delivers the chemicals modern life depends on
• In 2025, Class I railroads originated 2.2 million carloads of chemicals (8.2% of total carloads) and earned $13.5 billion in revenue from chemicals (16.7%).
• More than 99.99% of all hazmat moved by rail reaches its destination without a release caused by a train accident.

Chemical products are among the most important commodities transported in the United States, serving as essential inputs for industries ranging from agriculture and manufacturing to health care and consumer goods. Freight railroads play a central role in delivering these materials, moving them safely and efficiently at scale throughout North America. In doing so, railroads contribute to the strength of the U.S. economy and the reliable supply of products that are critical to modern life.

For rail transportation purposes, chemicals consist of thousands of distinct products classified under the Standard Transportation Commodity Code (STCC) 28—mainly STCC 281 (industrial chemicals); STCC 282 (plastics and synthetic resins); and STCC 287 (fertilizers and other agricultural chemicals).

The chemical industry is one of the largest U.S. industries.

The chemical industry’s revenue of approximately $635 billion in 2025 was nearly eight times the revenue of the U.S. freight railroad industry. Although the U.S. chemical industry consists of thousands of firms located throughout the country, many plants are concentrated in the Gulf States, where petroleum and natural gas raw materials are readily available. In recent years, low U.S. natural gas prices relative to the rest of the world have helped spur higher domestic chemical production.

Because end users of chemicals are spread throughout the country, huge volumes of chemicals are transported each year.

Figures compiled by the American Chemistry Council (ACC) show that 1.0 billion tons of chemicals were shipped in the United States in 2024 at a cost of around $76.2 billion.

In 2024, trucks accounted for 58% of chemical tonnage shipped and 72% of chemical transportation costs, while water transport accounted for 19% of tonnage and 7% of transportation costs, according to ACC data. Pipelines and air transport accounted for 5% of tons and 4% of costs. The remainder—19% of tonnage and 17% of chemical transportation costs in 2024—is attributable to rail.

In 2025, chemicals accounted for 8.2% of originated carloads, 13.4% of originated tonnage, and 16.7% of gross revenue for U.S. Class I railroads. Today, only intermodal generates more rail revenue than chemicals.

In 2025, U.S. Class I railroads originated 2.2 million carloads and 189.6 million tons of chemicals. The highest-volume chemicals carried by U.S. railroads are plastics and ethanol. More than half of rail chemical carloads consist of industrial chemicals, including soda ash, caustic soda, urea, sulfuric acid and anhydrous ammonia. Plastic materials and synthetic resins account for more than a quarter of rail chemical carloads. Most of the rest are agricultural chemicals.

Class I railroad gross revenue from chemicals was $13.5 billion in 2025, equivalent to around 2.1% of U.S. chemical industry revenue.

U.S. railroads transport around two million carloads of hazardous materials each year, depending on the year, including hundreds of thousands of carloads of chemicals considered hazardous. Railroads are the safest mode to transport hazardous materials. More than 99.99% of rail hazmat shipments reach their destination without a release caused by a train accident.

Tank cars carry approximately 47% of U.S. rail chemical shipments, followed by hoppers at around 42%. Around 10% move in containers.

THE BOTTOM LINE

By linking major chemical production regions with nationwide demand, freight rail provides the high-capacity, reliable transportation network that keeps U.S. manufacturing, agriculture, and energy supply chains running.