8 Inches of Rain Shut Down Busiest US Rail Line for 60 Hours

In Week 43, North American rail traffic experienced mixed results, with significant disruptions affecting major lines. BNSF's Southern Transcon, the busiest mainline and intermodal corridor, was shut down for approximately 60 hours due to heavy flooding in New Mexico. Meanwhile, CSX faced a 30-hour technology outage, paralyzing operations in the East. The flooding in Laguna, NM, received 8 inches of rain over three days, well above the annual average, leading to the closure of the Southern Transcon.

BNSF's intermodal volume for the week declined by 0.4%, a significant drop from the 14% increase seen the previous week. In contrast, Union Pacific reported a 17% year-over-year gain in intermodal volume during the same period. CSX's technology issue began on October 27 and was resolved by October 28. The railroad faced a 46% reduction in train counts during the outage, as reported by RailState.

The CSX technology outage also disrupted interchange traffic, causing a feedback loop at the ports of Los Angeles and Long Beach, as BNSF could not move loaded containers east or reposition empty railcars west. This issue extended the closure of the Southern Transcon to 60 hours.

While North American rail traffic rose by 4.3% compared to the previous year, the headline figure masked two major disruptions. BNSF's Southern Transcon closure and CSX's technology outage significantly impacted intermodal and carload volumes. These events also contributed to Q3 earnings for Class 1 railroads, with fuel surcharges driving outsized revenue gains, particularly for Union Pacific.