Railcar Loads and the Railcars That Supported Them in 2024

Railcar Loads and the Railcars That Supported Them in 2024

As 2024 draws to a close, the rail industry stands tall as a cornerstone of North America’s logistics network. Freight rail has moved millions of goods efficiently and sustainably, cementing its role as a key player in global commerce. This blog explores the year’s impressive railcar load data, key commodities transported, and how specialized railcars supported these movements. Let’s dive into how 2024 shaped up for freight rail and what this means for the future.

Railcar Load Highlights in 2024

The rail industry recorded remarkable achievements in 2024, moving millions of carloads across industries. Here’s a breakdown of key commodities and the railcar types that made it happen:

1. Grain
   • Volume: Over 2 million carloads were transported in covered hoppers.
   • Key Drivers: Agricultural exports surged despite global market disruptions.
   • Challenges: Impacted by international conflicts, such as the Ukraine-Russia war, and climate events like droughts in Panama.
2. Coal
   • Volume: 1.8 million carloads moved, primarily in gondolas and hoppers.
   • Key Drivers: Increased demand for power generation and exports.
   • Challenges: The decline in coal usage has led to surplus railcars, many headed for recycling.
3. Intermodal Freight
   • Volume: Over 3 million shipments via containers on flat cars (COFC) and trailers on flat cars (TOFC).
   • Key Drivers: The e-commerce boom and consumer shifts toward online shopping.
   • Challenges: Labor strikes, port congestion, and global shipping uncertainties.

These commodities highlight the resilience of freight rail in the face of global headwinds, from geopolitical tensions to shifting consumer demands.

Railcar Types: Meeting Diverse Needs

Specialized railcars ensure efficient transportation tailored to each commodity. Here's how key railcar types performed in 2024:

1. Covered Hoppers

• Purpose: Granular materials like grain and fertilizers.
• Fleet Size: Approximately 482,000, one of the largest categories in the North American fleet.
• Market Trends: Grain remains highly responsive to global market shifts, outpacing other commodities transported by covered hoppers.

2. Gondolas and Open Hoppers

• Purpose: Bulk commodities like coal and aggregates.
• Fleet Size: 275,000 gondolas and 98,000 open hoppers.
• Market Trends: Declining coal demand has led to an excess of specialized coal cars, with many destined for scrap.

3. Flat Cars

• Purpose: Intermodal containers, heavy machinery, and large equipment.
• Fleet Size: Approximately 87,000, with a growing focus on intermodal platforms.
• Market Trends: Intermodal freight saw steady growth, while general-service flat cars experienced shortages for non-intermodal freight like steel and logs.

Balancing Demand and Supply

The rail industry demonstrated its adaptability in 2024, balancing freight demand with railcar supply. Key strategies included:

• Fleet Optimization: Ensuring the right railcar is available for the right load.
• Technological Innovation: Advanced tracking and loading systems improved efficiency.
• Sustainability: Rail transport reduced highway congestion and greenhouse gas emissions, reinforcing its role in greener logistics.

Looking Ahead to 2025

As we enter 2025, understanding railcar usage and fleet composition will be critical to meeting freight demands. High-demand commodities like grain and coal will continue to drive fleet requirements, while the growth of e-commerce promises further expansion of intermodal shipments.

The data from 2024 isn’t just about numbers—it tells a story of resilience, innovation, and collaboration. Rail freight remains a linchpin in North America’s supply chain, and with the right strategies, it will continue to thrive.

Partner With Us for Your Railcar Needs

Whether you’re buying, selling, or leasing railcars, having the right fleet is essential for success. Let’s work together in 2025 to ensure your business has the tools and support needed to navigate the complexities of rail freight. Contact us today to get started!

Warm regards,

Darell Luther, CEO

Tealinc LLC
Office: (406) 347-5237 | Mobile: (406) 853-3332
www.tealinc.com | darell@tealinc.com