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Tale of Two Commodities: Coal’s Rebound and Chemicals’ Record Run on U.S. Rails

The U.S. freight rail system is a vital artery for the nation’s economy, with the flow of different commodities telling a story of economic shifts, industrial output, and global trade connections. In spring 2025, two distinct commodities are driving notable trends: the unexpected rebound of

coal carloads

and the continued record-setting pace of

chemical shipments.

Let’s explore the story behind these movements and their implications for railroads.

Coal's Unexpected Rebound: A Significant Spike

After years of decline, coal has made an unexpected comeback in

U.S. rail carloads

during April and May 2025. According to the Association of American Railroads (AAR), the rise in coal shipments has been striking:

In April 2025, U.S. railroads originated 53,736 more carloads of coal compared to April 2024, marking a 23.2% increase. This spike represents the largest year-over-year percentage gain in 16 months. This growth is directly linked to the export demand for U.S. coal, especially from Asia. As reported by FreightWaves, exports of coal are projected to reach 95 million short tons in 2025, up from 91 million in 2024. FreightWaves highlights that this surge is largely driven by the increased global demand for U.S. coal, particularly for power generation in energy markets.

For the week ending May 17, 2025,

coal carloads

rose by 8,809 units, bringing the total to 59,207 carloads, a 17.5% increase compared to the previous year. Even in the subsequent weeks, coal shipments remained strong, with a 6,096-carload increase for the week ending May 24, 2025.

What's Fueling Coal's Comeback?

Several factors are contributing to coal’s resurgence:

  1. Low Base Effect: Coal volumes were exceptionally low in April and May 2024, making this year’s gains appear more substantial.
  2. Export Demand: The rise in demand from Asian markets, particularly China and India, is propelling coal exports.
  3. Energy Market Dynamics: Fluctuating natural gas prices and increased energy demand due to unseasonal weather have temporarily boosted coal’s role in power generation.

Despite this rebound, the future of domestic coal consumption remains uncertain, especially with growing environmental regulations and the rise of renewable energy sources. However, the current export strength provides a significant boost to rail traffic.

Chemicals: A Story of Sustained Strength and New Records

While coal is showing signs of life, chemicals continue to be a dominant force in U.S. freight rail. In fact, the chemical sector reached new milestones in April 2025, solidifying its position as a key player in the rail industry:

In April 2025, chemical volumes transported by U.S. railroads hit a new all-time high, with an average of 33,745 carloads per week. Year-to-date through April, chemical carloads reached 596,918, reflecting a 2.2% increase from 2024 and marking the highest volume ever for the first four months of a year. YCharts reports continued strong numbers throughout April and May, with 35,183 carloads for the week ending April 26, 2025, and 33,113 carloads for the week ending May 17, 2025.

Drivers of Record Chemical Volumes

What’s fueling these record chemical shipments? The answer lies in a mix of industrial, agricultural, and domestic factors:

  1. Industrial Output: A robust chemical sector often mirrors strength in manufacturing, including plastics, fertilizers, and pharmaceuticals—all of which rely heavily on rail transport.
  2. Agricultural Demand: The spring months typically see high demand for fertilizers, essential for farmers preparing for planting season.
  3. Resilient Domestic Production: Despite challenges in other manufacturing sectors, certain segments of the U.S. chemical industry remain strong, driving consistent demand for rail services.

Why These Trends Matter for Rail

The movements in coal and chemicals have important implications for the U.S. freight rail system:

  1. Operational Adjustments: Railroads must adjust their operations to meet the needs of specific commodities—ensuring availability of specialized railcars (e.g., covered hoppers for chemicals, open-top hoppers for coal) and managing increased capacity requirements.
  2. Revenue Impact: While coal volumes are increasing, chemicals provide a more consistent, high-value revenue stream for rail operators due to the nature of chemical products and their higher transportation costs.
  3. Economic Barometer: These commodity shifts provide insights into the broader economy—coal’s export-driven boost reflects global energy demand, while chemical rail traffic mirrors industrial and agricultural strength in the U.S.

Beyond Coal and Chemicals

While coal and chemicals dominate the headlines, other commodities are also contributing to the dynamic U.S. rail landscape. For instance, grain carloads also saw a significant uptick in April 2025, rising by 8.6% compared to April 2024, driven by strong U.S. grain exports. The AAR Rail Industry Overview for May 2025 highlights this as one of the best Aprils for rail grain since 2021, pointing to the continued importance of agriculture in rail traffic.

The diversity of commodity flows underscores the adaptability of the U.S. freight rail network, which continues to support various sectors of the economy—from coal to chemicals and beyond.

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Nirveek Ghosh

Nirveek has a MBA degree in Marketing and brings in over 15 years of experience in global business, project management, consulting sales and digital marketing.

He works with the marketing department to manage the brand and marketing initiatives (manage website content and social media, blog, marketing collaterals, newsletter campaigns, search engine optimization etc.) and execute CRMS’s overall marketing strategy.

Nirveek has 6+ years of experience driving organic marketing campaigns across diverse industries. He is an avid fan of Manchester United and follows the EPL closely. During his leisure time he enjoys cycling and swimming.

Barb Ortyl

Barb brings nearly 20 years of experience in the Rail industry. She spent 19 of those years at GATX Rail in various Operations and Administrative roles. She followed the footsteps of her father who also worked for GATX and is now retired. She feels very fortunate to have worked for and with some of the best people in the industry and is grateful to be able to continue to do so.

Barb enjoys learning new things and putting that knowledge to good use. She loves digging in and finding ways to improve processes and creating “fancy” reports and dashboards. She has a genuine interest in helping others whenever and wherever she can.

In her free time, Barb enjoys spending time with her husband and adult twin daughters, as well as her furry co-working felines – Edith and Vinny.

Ashley Torres

Ashley Torres is the marketing director, focusing on web design, backend tech support, the creation of multimedia marketing material and marketig strategy. She holds a Bachelors of Science in IT and Technical Programming from Northeastern University. In her spare time, Ashley is an ardent baker, intermediate powerlifter, and nurtures a slightly abnormal obsession with dogs.

Claudia Escriba

A lifelong Chicagoan, Claudia Hernandez has an extensive background in accounting, management, and organization. She is certified in Information Processing Technology, and is currently earning her Bachelors of Science. Claudia is faith and family driven, loves her Yorkie, and collects inspirational quotes: “If sharing your dreams with people don’t make them at least giggle, then the dream isn’t big enough!”

Claudia Donato

Claudia Donato is an accountant and organization extraordinaire, taking out her workaholic tendencies on the main Chicago office. Outside of work Claudia is a sleep and exercise addict who enjoys urban exploration and dedicated community building.

Jennifer Van Horn

Jenifer Van Horn is renowned for her attentive listening skills and creative problem solving abilities. Her specialties include strategic relationship and partnership building within the rail industry, and finding common ground through tact and diplomacy. Jenifer is always striving for win-win-win outcomes.

Carlotta Gonzalez

Carlotta Gonzalez entered the rail industry in 2013 and has no intention of leaving! She’s developed a great understanding of BRC creation and railcar tracing technologies in addition to managing stenciling & reflecting programs. Carlotta’s family acts as constant inspiration, and in her spare time she loves nothing more than conversation over dinner, bonfires, and watching movies with her husband and their children.

Margaret Ebert

With decades of experience in operations, sales service, and support, Margaret Ebert provides essential insight into the day-to-day needs and logistics associated with railcar ownership, management, and maintenance. Her diverse set of expertise allows her to work successfully within tight deadlines.

She has been recognized and acknowledged for demonstrating an outstanding work ethic, positive attitude, and possessing exceptional communication skills. Margaret is an animal rescuer and has never lived in an abandoned caboose, though she aspires to.

Jeremy LeBeau

As personable as he is professional, Jeremy Lebeau is an indispensable member of the CRMS Sales Team. Jeremy is solutions oriented, and utilizes his exemplary knowledge of the rail industry to continually exceed customer expectations.

Ben Hines

Ben Hines holds a BA in Finance and Accounting from Western Michigan University, and has pulled his weight as a CRMS team member since 2011. Ben lives in Conifer, Colorado, where he enjoys a multitude of outdoor sports, especially whitewater rafting, fly fishing, and soccer.

Matthew Berberich

Matthew grew up in the suburbs of Chicago and moved to Fort Worth, Texas in late 2012. Shortly after calling Texas home Matthew enlisted in the United States Marine Corps as an electrical engineer. Throughout his active-duty career he was stationed in Japan, California, Guam, and Australia. Today, he continues to serve in the Marine Corps Reserve out of Waco, Texas. Matthew graduated from college with a degree in Supply Chain Management and professional selling while attending the University of North Texas.

Upon completion of school, he was hired by Trinity Industries where he began his career in industry as a Fleet Maintenance Planner. Matthew is married to his wife Caitlyn of 7 years and this past May they welcomed their first child Olivia. In Matthew’s free time he enjoys Golf, Skiing, Hunting, Sporting Clays, and spending time with his new little one A natural ‘Gear Head’ at heart, Nick enjoys switching through the gears on an open highway…Responsibly of course!