North American Rail Freight Reports 19.6% Value Drop January 2026

WASHINGTON D.C. – The value of freight moved by rail across U.S. borders with Canada and Mexico dropped to $12.2 billion in January 2026, a 19.6% decrease compared to January 2025. The U.S. Bureau of Transportation Statistics (BTS) reported yesterday that the total value for all freight modes was $126.9 billion, a 5.5% annual decline. The data indicates a significant contraction in the value of goods moved by rail to start the year.

How Is the Funding Structured?

The reported $12.2 billion in rail freight value is structured across two primary corridors. Rail freight between the United States and Mexico accounted for the larger share at $6.4 billion, while the U.S.-Canada corridor generated $5.8 billion in value. Key U.S. rail connection ports for these flows are Laredo, Eagle Pass, and El Paso for Mexico, and Detroit, Port Huron, and International Falls for Canada. The BTS report did not provide a breakdown of value by specific commodity type.

Key Funding Data

How Does This Compare to Similar Funding Programs?

The January decline in rail freight value appears to be part of a continuing trend, with separate data showing a 19% year-over-year fall for the week ended 14 March 2026 (Source: The Loadstar). However, this drop in value contrasts sharply with other freight market indicators. Intermodal volumes, which combine truck and rail, saw a rebound in February 2026, with domestic containers posting annual increases (Source: IANA). Similarly, truck tonnage recorded its largest annual gain since October 2022 in February 2026, suggesting that overall freight movement is not uniformly declining (Source: American Trucking Associations). The divergence between rising volumes in other sectors and falling rail value points to a potential shift in the commodity mix or significant pricing pressures within the rail sector.

Editor’s Analysis

The significant drop in transborder rail freight value, despite a concurrent rebound in intermodal volumes and truck tonnage, suggests the issue may be less about total volume and more about the type and value of goods being shipped. This trend is unfolding as the industry grapples with major structural changes, including the proposed Union Pacific and Norfolk Southern merger, which continues to face opposition from shippers over competition concerns. The disconnect between value and volume metrics indicates that while trucking pressures may be pushing more freight to intermodal, the highest-value goods are not following, or that rail carriers are facing intense pricing pressure.

FAQ

Q: What were the top rail ports for U.S. trade with Canada and Mexico?
A: For trade with Mexico, the top U.S. rail connection ports by value were Laredo, Eagle Pass, and El Paso. For Canadian trade, the top ports were Detroit, Port Huron, and International Falls.

Q: Did the report specify freight volume (tonnage) or only value?
A: The Bureau of Transportation Statistics report focused exclusively on the U.S. dollar value of the freight. Corresponding tonnage data, which would clarify if the decline is due to lower volumes or lower-value goods, was not disclosed in this release.

Q: What is causing the pressure on the trucking industry?
A: The trucking industry is reportedly facing challenges including high fuel costs, rising tender rejections, and general rate hikes. These factors typically make rail and intermodal services a more attractive alternative for shippers (Source: The Loadstar).