Railroad Freight

Rail carloads, at 240,514, were up 5.4% annually, which is below the week ending June 30 at 270,916 and the week ending June 23 at 268,464.

U.S. rail carloads headed up 2.0%, or 21,098 carloads, to 1,080,769, and U.S. intermodal containers and trailers in June were up 6.3%, or 68,689 units, at 1,159,973.

As most shippers can tell from their rising freight bills, carriers have taken advantage of a seller’s market in transportation as the confluence of a strong economy, surging demand and labor and capacity shortages is causing multiple pain points for logisticians. That’s the conclusion of the 29th annual State of Logistics report produced by A.T. Kearney in partnership with the Council of Supply Chain Management Professionals (CSCMP) and Penske Logistics.

Carloads were up 2.8% to 271,641, which topped the week ending June 2 at 252,162 and trailed the week ending May 26 at 273,226.

These six rail segments, which comprise roughly 650 miles, are considered “non-core properties” by CSX, with CSX saying its decision to solicit them was based on a detailed evaluation of each line and its potential to be operated more effectively by a highly qualified, third party.

Future pricing leverage worrisome

Through the first 21 weeks of 2018, U.S. rail carloads are up 1.2% annually at 5,414,483, and intermodal containers and trailers are up 5.9% at 5,736,006. Intermodal Carload Volumes 2018, Intermodal Report by Association of American Railroad AAR

On one hand, there are carriers, shippers, and other industry stakeholders asking Congress to change the national twin trailer standard from 28 feet to 33 feet, saying that such a move would have myriad benefits along the lines of improving productivity and increased vehicle safety, among other benefits. And on the other hand, is the railroad sector, specifically in the form of the Association of American Railroads (AAR), whom has squelched past attempts by the trucking sector to push through legislation calling...

Carloads headed up 3.5% to 264,522, and intermodal containers and trailers rose 8.9% annually to 274,873.

While railroad service issues clearly presented internal challenges for the Class I’s and external issues for rail shipper customers, it is the opinion of one industry observer that having the Class I’s offering up written responses to the STB does not really do a whole lot in terms of the big (service) picture.

Railroad service issues once again have the attention of the Department of Transportation’s Surface Transportation Board (STB), with STB Acting Chairman Ann Begeman and Vice Chairman Deb Miller penning letters to the top executives at the seven North American Class I railroads, requesting each carrier’s service outlook for both the near term and the rest of 2018.

Carloads were up 1.6% at 256,075, and intermodal containers and trailers saw a 10.8% annual gain to 278,207.

Montreal-based Class I railroad carrier CN said yesterday that its Board of Directors formally announced that CEO Luc Jobin has left the company, effective immediately, and replaced him with Jean-Jacques Ruest. Ruest, a 22-year CN veteran, will serve as interim president and CEO until a new, permanent replacement has been named, and he has served as executive vice president and chief marketing officer for the past eight years. CN said an international search for a new CEO is now underway.

Freight volumes, Intermodal containers and trailers headed up 5% to 270,586, ahead of the 207,216 recorded for the week ending January 6.

In a letter to leadership at the United States Surface Transportation Board, CSX CEO James Foote outlined the progress the Jacksonville, Fla.-based Class I freight railroad carrier has made in its ongoing implementation of Precision Scheduled Railroading (PSR).