Association of American Railroads

Association of American Railroads

Association of American Railroads

October 13, 2026. Edition #202. LOCK IT DOWN

Below is the latest edition of The Signal ™ — our biweekly newsletter delivering freight rail news, insights, and interesting facts. Enjoying it? Subscribe to get the email sent straight to your inbox every other week. You can also check out past editions here.

Staying One Step Ahead of Cyber Threats

As AI makes cyberattacks more sophisticated, railroads are stepping up their defenses. October is Cybersecurity Awareness Month, so we’re taking a look at how freight railroads protect their digital networks.

Since 1999, freight railroads have had dedicated cybersecurity teams monitoring their networks around the clock. Today, these experts are using increasingly advanced technology to detect suspicious activity and stop potential threats. Here are three examples of how they’re doing it:

  • Spotting Threats Early: AI-powered tools can monitor railroad computer networks around the clock, learning what normal activity looks like and flagging anything unusual, such as unexpected attempts to access critical systems. This helps cybersecurity teams catch potential threats before they cause problems.
  • Keeping Hackers Out: Many railroads use security technology that acts like a digital lock, checking that only authorized people and devices can access important systems. This helps protect communications between trains, signals, and control centers.
  • Protecting Trackside Technology: Sensors and communication equipment along railroad tracks constantly exchange information. Monitoring tools can spot unusual activity or unexpected changes in these connections and alert cybersecurity teams to potential problems.

Rail Industry Overview for October

The latest Rail Industry Overview for September just dropped yesterday. Below are the key takeaways and you can read the full report here.

  • Another intermodal record. The third quarter was the best quarter ever for intermodal. A record-setting August was followed by a stellar September.
  • Carload gains are unusually broad. September was the ninth straight month with year-over-year total carload gains. Carloads are now generally at levels not seen since 2019.
  • Manufacturing momentum is real. Broad-based manufacturing expansion now appears firmly entrenched, supporting carloads of chemicals, steel, construction materials, and more.
  • Significant risks remain, but the economy is shrugging them off. High energy prices, geopolitical tensions, and weak consumer confidence so far aren’t enough to derail the freight economy.

What’s On the Move

Intermodal is growing across North America as rising diesel prices and trucking costs push more shippers toward rail.

Domestic intermodal volumes recently climbed 6.6% year over year, while major railroads and ports are investing in infrastructure to capture growing demand. In Southern California, Union Pacific sees significant opportunity to expand rail’s 27% share of the Los Angeles basin transportation market, while BNSF is advancing its Barstow International Gateway project.

The Port of Long Beach is investing $1.8 billion to triple on-dock rail capacity and accelerate container transfers, while the Port of Savannah’s record September container volumes underscore continued freight demand.

U.S.-Mexico trade recently hit a record high.

Mexico remained the United States’ largest trading partner in August 2026, with two-way trade surging nearly 27% year over year to a record $94.3 billion. U.S. imports from Mexico rose 34.3% to $60.6 billion, while exports climbed 15.1% to $33.7 billion. Year-to-date trade reached $682.8 billion, up 17.5%, while Port Laredo remained the nation’s busiest international trade gateway, handling $38.6 billion in August commerce despite ongoing tariff uncertainty.

North Dakota’s soybean boom continues to grow.

North Dakota has emerged as the nation’s fastest-growing soybean-producing state, with plantings more than tripling since 2000 amid rising demand from China and the biofuels industry. Improved seed technology and expanding domestic processing capacity have fueled growth, while new soybean varieties tailored to the state’s shorter growing season could further boost yields.

Recent investments in processing facilities are also strengthening local demand, reducing reliance on exports and creating new opportunities for farmers as renewable fuel demand grows.

Expert Input: Say No to the Railway Safety Act

A coalition of free market and conservative groups recently urged Senate committee leaders to reject the Trump administration’s proposal to include the Railway Safety Act in the must-pass surface transportation reauthorization bill.

The coalition argues that the act’s two-person freight train crew mandate and prescriptive technology requirements would hinder innovation and raise shipping costs without improving safety.

The letter also notes that the train involved in the 2023 East Palestine derailment had a three-person crew, and federal investigators neither identified crew size as a factor nor recommended a minimum crew mandate.

Making a Difference

This summer, 30 CPKC de México railroaders joined PROFAUNA volunteers to plant 1,000 trees in San Lorenzo Canyon in Saltillo, Coahuila, helping restore biodiversity in the area. The effort builds on a successful 2025 planting initiative that saw 90% of its 1,000 trees survive.

👆 Watch the short video on LinkedIn

Railroader Spotlight

After 36 years on the railroad, CSX locomotive engineer Robert “Kelly” Stobart is wrapping up an impressive career without a single injury or operating incident. From the friendships he’s built to the importance of looking out for one another, Kelly shares what made his time on the railroad so special. As he puts it, “If you love your job, you never work a day in your life.”

👆 Watch his story.

Industry Reads