CSX is seeing higher volumes in the first quarter, supported by a growing shift from road transport to rail.
Maryclare Kenney, senior vice president and chief commercial officer at CSX, said more shippers are turning to rail as fuel and trucking costs increase.
The group handled 1.56m units in the first quarter, representing a 3% year-on-year increase. Intermodal volumes rose by 6%, while revenue from the segment increased by 5%.
The current market environment is strengthening CSX’s optimism around conversion opportunities, particularly in domestic intermodal.
The company is also preparing to launch a service with CPKC as part of its Southeast Mexico Express offering. The service is expected to provide truck-competitive transit times between major markets in the US Southeast, Dallas and Mexico.
Competitors Union Pacific and Norfolk Southern are also cautiously optimistic. Union Pacific believes a sustained rise in fuel costs could support volumes as the year progresses. Norfolk Southern is also seeing positive signals in intermodal, although its optimism is tempered by increased competition linked to the announced UP and NS merger project.
Norfolk Southern had already noted in March that higher energy prices could also benefit certain activities, including coal and utility services.
