CSX Targets Truck-to-Rail Conversions as Diesel Costs Squeeze Shippers

CSX Transportation is working directly with shippers to convert truckload freight to intermodal rail, offering confidential lane-by-lane evaluations as tight trucking capacity and elevated fuel costs push cargo toward railroads, Chief Commercial Officer Maryclare Kenney said on the company's Q3 earnings call. CSX reported a 7% year-over-year increase in chemical volume in Q3 driven by truck-to-rail conversions, Kenney said, adding that waste and petroleum products also present "good opportunities." Diesel fuel stood at $6.28 per gallon as of Oct. 19, up from $2.66 a year earlier, according to the U.S. Energy Information Administration, while tighter capacity from compliance requirements and a driver shortage continues to support intermodal demand. Kenney said new service offerings through Birmingham, Myrtlewood and Baltimore are performing well and attracting new business. Rival railroads are seeing similar momentum: Norfolk Southern cited growing domestic intermodal and chemical demand, and Union Pacific said fuel savings for shippers are winning it more business.