Source: Bloomberg
Summary
Rising diesel costs and tighter trucking capacity are driving more freight towards rail, according to CSX’s chief commercial officer, Maryclare Kenney. This shift is an opportunity for freight railroads to attract truckers. CSX is among the companies seeking to capitalize on this trend.
Our Reading
The trend returns with a new name.
Freight railroads are once again becoming a more attractive option for shippers due to rising diesel costs. CSX is among the companies looking to benefit from this shift. Trucking capacity constraints are also contributing to the trend.
Maryclare Kenney’s comments echo a familiar narrative.
The rail industry’s pitch sounds like a revival of a decades-old sales strategy.
The cycle of freight transport is as predictable as the seasons.
The cost of diesel has become the latest catalyst for a shift towards rail.
The freight railroads’ pursuit of truckers is a story as old as the industry itself.
Author: Evan Null
