CEOs of Norfolk Southern and CSX said in remarks during investor conferences recently that their respective companies are slowly improving their freight service as newly hired conductors qualify for active duty.
The two Class 1 railroads have cited crew shortages as a major contributor to service issues that have drawn the ire of shippers and regulators.
Both spoke at the Cowen Annual Global Transportation & Sustainable Mobility Conference.
As reported by Trains magazine, CSX head James Foote said his railroad is lagging its goal of full train and engine personnel.
CSX now has 6,800 active T&E workers and expects to reach 7,000 active crew members by year’s end.
“We’re gradually, gradually improving,” Foote said. “Service metrics show it. Velocity shows it. Dwell shows it. On-time performance shows it. It’s a grind. It’s been really tough. But we’re continuing to show progress.”
At Norfolk Southern, CEO Alan Shaw said the conductor workforce have increased by 275 since the end of the first quarter with 923 conductors in training.
The level of active T&E crews is up 4 percent and close to matching the level of last year.
Shaw said merchandise on-time performance had improved to 67 percent in early September. Last May it had sagged to 48 percent.
“Demand for our product is exceptional right now, and it exceeds our capacity,” Shaw said. “As we speed up our network, which we have started to do, we have more capacity in our network and can take advantage of the volume opportunities.”
However, NS continues to see higher than desired crew attrition rates at terminals in Fort Wayne and Elkhart, Indiana; Louisville, Kentucky; and Cincinnati.
Tags: Class 1 railroad service issues, CSX, freight service issues, James Foote, Norfolk Southern, NS CEO Alan Shaw
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