Rising intermodal volume slows big four U.S. rail systems

Industry
โดย FreightWaves·Read original
Summary · why it matters

The big four U.S. Class I railroads are experiencing slower intermodal train speeds as a surge in volume, driven by shippers turning to rail amid high fuel prices and trucking rate spikes, strains their networks. Independent analyst Rick Paterson noted in his June 26 State of the Rails report that average intermodal train speed has fallen to multi-year lows in some cases, with BNSF and Union Pacific at 10-month lows, Norfolk Southern within 2% of a 20-month low, and CSX at a seven-year low. Second-quarter intermodal volume growth through the week ending June 21 shows BNSF up 9.5%, CSX up 8.3%, Norfolk Southern up 5.1%, and Union Pacific up 3.3%, with weekly gains of 15%, 14%, 12%, and 13% respectively. Paterson cautioned that the industry must manage the speed and on-time performance challenges to retain the volume windfall once truck-versus-rail rates stabilize, noting that Norfolk Southern is hiring crews at about half its terminals and CSX is hiring conductors at 40 locations. In contrast, Canadian National and CPKC saw quarterly intermodal volume declines of 4% and 0.6% respectively, with train speeds improving on both railways.

Impact on stocks 5

Industrials▼ · 5 stocks
CSX Corporation
CSX
▼ NegativeDemandrelevance

Surge in intermodal volume strains network, slowing train speeds to seven-year low, risking retention of volume windfall.

Norfolk Southern Corporation
NSC
▼ NegativeDemandrelevance

Intermodal train speed near 20-month low due to volume surge, with hiring crews to manage challenges.

Union Pacific Corporation
UNP
▼ NegativeDemandrelevance

Intermodal train speed at 10-month low as volume growth strains network, risking future volume retention.

Off-coverage companies 1

BNSF RailwayPrivate▼ Negative
Demandrelevance

Intermodal train speed at 10-month low due to volume surge, with risk of losing volume when truck rates stabilize.

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