uploads///CSX Intermodal

CSX’s Containers Rose, Trailers Fell in Week 25

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Jul. 5 2017, Updated 7:38 a.m. ET

CSX’s intermodal volumes

CSX Corporation (CSX) reported a 4.8% rise in intermodal volumes in the week ended June 24, 2017. The company’s intermodal volumes in the reported week were 57,000 containers and trailers, compared to nearly 55,000 units in the same week last year. In contrast to its trailers, its containers witnessed a rise in volumes. CSX’s container volumes rose 5.2% in the week to over 55,000 units, compared to ~53,000 units in the same week last year.

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The company moved 66 (or 3.1%) fewer trailers at over 2,000 in the reported week of 2017. Compared to its close competitor Norfolk Southern (NSC), CSX’s intermodal volumes rose at a higher rate in percentage terms in the week ended June 24, 2017. CSX’s intermodal growth was at par with US railroad companies’ overall intermodal growth.

CSX’s intermodal volumes

1Q17 saw CSX’s intermodal revenue rise 7%. In 2Q17, CSX anticipates higher intermodal revenue on a sequential basis. Moderate fuel prices and weak export and import markets have been the biggest hurdles for CSX’s intermodal growth in recent quarters. In the company’s Domestic Intermodal segment, it expects some short-haul volume losses over the next few quarters.

Unlike in its Domestic Intermodal segment, CSX’s International Intermodal segment saw volume growth in 1Q17. The company thinks that the implementation of trucking regulations, including the electronic logging device (or ELD), could result in service issues in the trucking industry (JBHT).

ETF investment

If you want indirect exposure to transportation stocks, you may want to consider the VanEck Vectors Morningstar Wide Moat ETF (MOAT). All US-originated railroad companies are included in MOAT’s portfolio holdings.

In the next article, we’ll take stock of Union Pacific’s (UNP) carloads in week 25.

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