Rail provider CSX says in its quarterly earnings report that demand for coal and grain exports from the U.S. drove its rates up 3% in the second quarter, enough to offset declines in volumes in other areas, notably automotive which dropped 23% in the quarter. Earlier this year, CSX said it expects its rates to be up 5–6% in 2008.

So far this year, shipments on U.S. rails are up 0.3% compared with the same period in 2007, according to the Association of American Railroads, despite the massive flooding in the Midwest that delayed many rail shipments. During a conference call with analysts, CSX estimated that the Midwest floods would have a minimal impact on its earnings, but other carriers did not get off so easily. Burlington Northern Santa Fe said in June that the floods' impact was great enough on its operations that it would cause it to miss its forecasted earnings.

"We've had a heck of a challenge," Union Pacific CEO Jim Young told the Merrill Lynch Global Transportation Conference in June during the floods. "Every railroad in Iowa was shut down."