BNSF Railway’s intermodal volumes

In the 17th week of 2017, BNSF Railway’s (BRK-B) overall intermodal traffic rose 6.7% YoY (year-over-year) to ~102,000 containers and trailers, compared with 95,000 containers in the corresponding week of 2016. The company’s container volumes rose 7.1% to ~91,000 containers.

BNSF’s trailer volumes rose 3.4% YoY to ~10,000 trailers. The rise in the company’s intermodal traffic was higher than the overall increase reported by US railroad companies in the same category.

How BNSF Railway’s Intermodal Volumes Compare

Are intermodal volumes vital to BNSF?

BNSF Railway’s Consumer Products Freight business includes domestic and international intermodal operations, as well as automotive freight. This segment accounted for ~30.0% of the company’s total revenue in 2016.

It’s worth noting that BNSF Railway accounted for ~50.0% of Western US freight rail traffic in 2016. The company handles 1.0 million more intermodal units per year than any other Class I railroad company. Its intermodal volumes represent nearly 50.0% of its business portfolio.

BNSF’s intermodal competition

BNSF Railway faces tough competition from truckers such as J.B. Hunt Transport Services (JBHT) and Swift Transportation (SWFT) in the intermodal space. Intermodal volumes are impacted by seasonality, highway-to-rail conversions, and access to certain high-traffic ports.

If you’re interested in the transportation space, you could consider the WisdomTree Earnings 500 ETF (EPS). All US-born Class I railroad companies are included in EPS’s portfolio. In the next article, we’ll take a look at the carloads of the smallest US Class I railroad company, Kansas City Southern (KSU).

Latest articles

Berkshire Hathaway CEO Warren Buffett has spoken openly about his stock repurchasing strategy, calling it "simple arithmetic." How does he do it?

In a research note released yesterday, Apple (AAPL) analyst Ming Chi Kuo noted that more people from the US could choose the iPhone Pro than the iPhone 11.

Two Saudi Aramco crude oil facilities were attacked by Iran-backed Houthi rebels using drones. At 10:23 AM, Brent crude oil was trading up 11.2% at $67.

While tech stocks fell sharply in late 2018, they surged again in 2019. How could the market react if tech stocks post lower-than-expected earnings?

Today at 2:10 PM ET, the S&P 500 Index fell 0.3% as investors watched rising oil prices. The cannabis sector also fell today, as its ETFs traded in the red.

NVIDIA (NVDA) stock had fallen over 1% in today's trading session as of 10:50 AM ET. The stock was also down in premarket trading.