FREIGHT RAIL & INTERNATIONAL TRADE KEY FACTS

  • Nearly 40% of freight rail traffic is tied to international trade, moving key goods like grain and autos.
  • Rail connects American producers to global markets efficiently and affordably.
  • Railroads oppose tariffs that raise costs and limit access to global markets.

From the car you drive to the food on your table, nearly every aspect of American life depends on the seamless movement of goods through domestic and international trade. This intricate system relies on manufacturing, transportation, and retail—whether in-store or online—to bring products to consumers. Freight railroads are a critical link in this chain, connecting businesses across the country and around the world. Railroads move essential commodities to every corner of the nation and beyond.

They transport Canadian lumber to U.S. cities for home construction, plastic pellets to Gulf ports for export to Asia, and consumer goods inland from ports. They are also integral to key industries such as agriculture and automotive manufacturing, ensuring American businesses remain globally competitive. According to a report from AAR’s Policy & Economics team:

  • 38% of all rail traffic was directly tied to trade-related shipments.
  • 543.5 million tons of goods moved through U.S. ports and across borders via rail.
  • $29.8 billion in rail revenue—37% of Class I railroad earnings—came from trade-related shipments.

Food & Agriculture

Railroads connect agricultural producers, dealers, and consumers in the U.S. and around the world. Without railroads, it would be impossible to keep the shelves in our grocery stores full. America’s farmers are huge exporters; in a typical year, grain exports are equivalent to around 30% of U.S. grain production. Annually, railroads haul around 1.6 million carloads of grain and other farm products; more than 1.7 million carloads of food products; and several hundred thousand carloads of fertilizers and the raw materials that go into making them.

Automotives

With a single train carrying hundreds of cars, freight rail transports nearly 75% of the new cars and light trucks purchased in the U.S. In a typical year, railroads carry 1.8 million carloads of motor vehicles and parts. Railroads offer an efficient and cost-effective means of distributing finished vehicles from manufacturing plants to distribution centers and dealerships, especially for long-distance transport. The logistical efficiency of rail transport helps streamline the auto industry’s supply chain and reduce overall transportation costs.