The railroad industry was adversely impacted by reduced consumer spending last month amid surging COVID-19 cases and global supply chain issues. For the week ended Jan. 22, 2022, U.S. weekly rail traffic declined 9.8% year-over-year, according to the Association of American Railroads. This follows record revenues collected by Class I railroads in the United States in the first three quarters of 2021.
As consumer spending picks up as omicron variant concerns fade, the railway industry is poised to make a strong comeback in the coming quarters. Amid the growing demand for intermodal transport, the market size of the rail transportation industry is projected to increase 4.3% in 2022.
