OMAHA, Neb. — BNSF Railway’s revenue and profits grew in the first quarter despite a decline in volume.
The railway’s operating income rose 8%, to $2 billion, as revenue increased 10%, to $6 billion, thanks to higher revenue per carload and intermodal unit, the railroad’s parent company, Berkshire Hathaway, reported on Saturday. BNSF’s operating ratio rose 0.9 points to 64.6%.
Overall volume decreased 3.3% due to declines in shipments of international intermodal, finished vehicles, and agricultural products.
Consumer products volume — which includes intermodal and automotive traffic — declined 8.5%. “The volume decrease was mainly from lower international intermodal shipments resulting from supply chain challenges and lower automotive shipments due to production impacts from a global microchip shortage, partially offset by an increase in domestic intermodal volumes,” Berkshire said in its filing.
Industrial products volume grew 1.3% in the quarter as production rose.
Agricultural products volume slumped 4.1%, largely due to lower grain exports. Ethanol volumes rose, however.
Coal traffic rose nearly 14%. “The volume increase in 2022 derived from increased electricity generation, higher natural gas prices and improved export demand,” Berkshire said.
Every carload of ethanol is a carload (carloads?) of food nobody can eat.
The precious ethanol. Let’s take away all government influence from that product and see what the demand is. It will be as popular as inflation.
So what is exactly going on with grain shipments? The convenient thing to say in the article is lower exports but not sure where that is sourced when you got shippers saying that Class I’s can’t deliver or turn hoppers around fast enough to meet demand.
With farmer workers in Ukraine fighting in the army, and with Black Sea shipping stopped by the Soviet Navy, the world is desperately short of grain. Far be it for American railroads to step up and help out. Way too much to expect.
Here’s a suggestion: fire the railroad CEO’s and top managers. Replace them with men and women from the working T+E crews.