CSX works with shippers to identify routes suited to rail conversion
CSX Transportation is stepping up its efforts to attract freight currently moving by truck, as mounting pressure on the trucking market creates new opportunities for rail and intermodal services.
During the company’s third-quarter earnings call, Maryclare Kenney, senior vice president and chief commercial officer at CSX, explained that the railroad is working directly with shippers to identify routes where moving freight from road to rail could offer a competitive alternative.
The process involves examining customers’ truckload files confidentially, assessing their existing transport flows and identifying lanes that could be suitable for intermodal conversion. CSX then provides information on the service available along those routes, allowing customers to compare their options before making a decision.
Kenney told analysts that this approach helps shippers gain confidence in shifting freight to rail, particularly as road transport capacity becomes increasingly constrained.
Higher diesel prices and tighter capacity strengthen rail’s appeal
CSX’s intermodal business continues to benefit from elevated diesel costs, reduced trucking availability and high truckload rates, according to Kenney.
Fuel prices remain a major concern for the trucking industry. On October 19, diesel reached $6.28 per gallon, compared with $2.66 a year earlier, according to the U.S. Energy Information Administration.
Capacity constraints are adding to the pressure. The trucking sector is dealing with additional compliance requirements as well as a shortage of drivers, factors that are making transport operations more difficult and encouraging shippers to reassess their logistics strategies.
Against this backdrop, CSX continues to record strong conversions from road to rail. Kenney also highlighted the performance of new service offerings through Birmingham, Myrtlewood, Baltimore and other locations, saying these services were performing well and attracting new business.
Forest products, chemicals and petroleum offer different growth prospects
The potential for shifting freight from trucks to rail varies according to the commodity being transported.
Forest products represent one area where CSX sees an opportunity to gain market share. These goods typically rely heavily on trucking, Kenney explained. With road capacity becoming tighter, the railroad is looking to attract more of these shipments. However, its efforts have not yet translated into an improvement in demand for the segment.
Chemicals are delivering more immediate results. CSX recorded a 7% year-over-year increase in chemical volumes during the third quarter of 2026, driven by conversions from road to rail, Kenney said.
She also identified waste and petroleum products as segments offering good opportunities for additional conversions.
The results underline how changing conditions in the trucking market can create opportunities across several freight categories, although the pace of adoption differs depending on the commodity and its transport requirements.
Norfolk Southern and Union Pacific also benefit from the shift
The trend is not limited to CSX. Other major U.S. railroads have also reported stronger opportunities as shippers increasingly consider rail alternatives.
Norfolk Southern has observed growing demand for rail services in its domestic intermodal and chemical segments. President and CEO Mark George discussed this development during the company’s recent third-quarter earnings call.
Union Pacific, meanwhile, is benefiting from the fuel savings available to shippers using rail rather than road transport. According to Executive Vice President and Chief Financial Officer Jennifer Hamann, these savings are helping the railroad secure additional business. She made the remarks during Union Pacific’s third-quarter earnings call the previous week.
Together, the developments point to a broader shift in freight transport decisions as companies weigh operating costs, capacity availability and the economics of moving goods by rail.
CSX builds on a strategy established earlier in the year
CSX has been particularly vocal about the opportunities created by the growing movement of freight from trucks to rail.
In April, the railroad said it was exploring ways to capitalise on the increase in conversions and expressed optimism about the market’s potential for rail-based transport solutions.
Its current approach builds on that strategy by combining confidential analysis of shipper data with comparisons of service options and costs. Rather than relying solely on general market conditions to attract new freight, CSX is working to identify specific routes where intermodal transport could meet customers’ needs.
With diesel prices remaining elevated, trucking capacity under pressure and other railroads reporting similar developments, CSX is seeking to turn these market conditions into additional freight volumes and longer-term commercial opportunities.
