Mo’ Volume, Mo’ Problems

Railroad Weekly July 6, 2026

courtesy: Steel Wheels Photography

Inside This Issue

· Mo’ Volume, Mo’ Problems: As IM Volumes Grow, RRs Start to Slow

· Jax Be Not Nimble: CSX Struggling Most With Volume Jump

· Another Trade Grenade: U.S. Says No to Renewing USMCA Pact

· Trade Crusade: Industry Groups Try to Persuade That It’s Good to Trade

· Rage Against the Supreme: Fired STB Member Primus Blasts Big Court Ruling

· Suppliers Waiting for Buyers: New Railcar Orders Remain Depressed

· But Increased Need with Slower Speed: Shippers Seek More Cars as Networks Slow

· Pipe Left: New Canada Pipeline to Move Crude Westward from Alberta

Track Talk

“Volumes are the enemy of speed.”

-Industry Analyst Rick Paterson

The Latest:

More Containers and Trailers Lead to More Operational Failures

· Every business wants more business. But can they handle it? U.S. railroads are thrilled to see intermodal volumes growing this year. But as a new report by industry analyst Rick Paterson makes clear, the additional business is stressing their operational fluidity. Paterson’s latest edition of his “State of the Rails” report describes “the biggest volume surge in years” as railroads win intermodal business from trucks. They’re doing so for two primary reasons: Rising truck rates and rising fuel prices, both of which make rail pricing relatively more attractive. The surge, alas, comes as a surprise, leaving carriers short of people and assets in some geographies. “The rails can handle anticipated increases in volumes, which this isn’t.” And so, “The renewed surge in intermodal loads at the four U.S. Class I’s since Memorial Day is having the predictable effect on network fluidity, with average intermodal train speed falling to multi-year lows in some cases.”

· Another service crisis in the making? Not quite. As Paterson explains, “systemic service failures (meltdowns) aren’t centered around the intermodal networks, but