Atlanta Claus

Railroad Weekly Dec. 12, 2022

courtesy Norfolk Southern

Inside This Issue

·   Atlanta Claus: Norfolk Southern Promises Profits and Growth

·   Marty’s Mad: STB Chief Scolds UP; Embargo Hearings this Week

·   Amtrak Smack: The STB Isn’t the Only One Mad at UP

·   Crew Cut: FRA to Discuss Controversial Staffing Issue

·   Which Ports Don’t You Like? Importers Fleeing the West Coast

·   Recession Obsession: Can the U.S. Economy Avoid a Downturn?

·   Crude for Thought: Pay Attention, Oil Prices are Plummeting  

Track Talk

“We will deliver a reliable and resilient service product that allows us to pursue smart and sustainable growth. Now we call it smart and sustainable growth because it is not a grow-at-all-cost strategy. We know that doesn’t work.”

-Norfolk Southern CEO Alan Shaw   

Reminder: Railroad Weekly publishes 48 issues a year, with two-week pauses in August and December. The last issue of 2022 will be on Dec. 19th. The first issue of 2023 will be on Jan. 9th.   

Please contact jay@railroadweekly.com to inquire about discounts for educational institutions. Or click here: https://railroadweekly.substack.com/educational

The Latest

·      Norfolk Southern grabbed the spotlight last week, delivering a deep-dive look into its plan to pursue “smart and sustainable growth.” That probably won’t mean higher profit margins. But profit margins are arguably too high right now, in other words not compatible with reliable service. Industry costs are in any case headed north, underscored by the costly new labor agreement now in place. As for industry revenues, pricing power remains strong and demand—while weakening in some areas like intermodal and housing-related shipments—appears resilient overall. See below for more on Norfolk Southern’s thinking.