CSX responds to STB letter regarding service issues

CSX has taken multiple steps to improve service while facing substantial headwinds during the pandemic, President and CEO James Foote wrote last week in response to Surface Board Transportation Chairman Martin Oberman's October letter detailing a series of service complaints.

"Our customer solutions department has not seen a recent increase in service inquiries and we were not aware of informal complaints increasing to your public affairs office," Foote wrote Nov. 2 to Oberman. "We serve more than 5,000 customer facilities and to address issues we need to know certain key facts: when, where and which customer facility."

In an Oct. 18 letter to Foote, Oberman said the board, in private meetings and public settings, has "continued to receive a steady stream of complaints about the adequacy of rail service provided by CSX." The complaints were not limited to a particular region on the railroad's network, nor confined to shippers of certain commodities, Oberman said.

The chairman also mentioned that CSX's rail service performance data reported under STB requirements "tend to support that CSX's network is underperforming compared to the benchmarks set in 2019."

In his response, Foote described the current state of CSX's network.

"Everything starts with our employees, and their performance has been exemplary in delivering the nation’s freight to our customers throughout this period of pandemic recovery and the challenges we face in the global supply chain. I am grateful for their resilience and dedication," Foote wrote.

In addition, the industry is facing multiple challenges, including a "constrained labor market, extended lead times, scarce storage capacity, port congestion and material shortages." CSX is operating 24/7 to facilitate traffic flow, with other aspects of the supply chain implementing similar practices, Foote said.

On the carload side of the business, the Class I has implemented the following, according to Foote:

• Consolidated train starts by creating multi-purpose trains where possible, which includes the combining of intermodal, automotive and merchandise traffic types;
• Eliminated unnecessary train stops or reduced time at intermediate yards to increase line of road fluidity;
• Extended sidings at select locations that add capacity and improve transit times;
• Upgraded locomotives with distributed power capability which allows for higher tonnage trains and flexibility in balancing the train plan;
• Strategically positioned locomotives throughout the network in preparation of anticipated upticks in business, e.g., agriculture products during harvest;
• Upgraded hump yards to increase efficiencies for car switching and classification; and
• Ongoing adjustment of blocking plans to optimize car flows in line with traffic patterns, e.g., the recent variability of auto plant openings and closings.

Foote also described the transportation industry's efforts to hire new workers in a tight labor market.

"We're seeing high attrition rates during the on-boarding, training and first year of service for conductors," Foote wrote. "On top of this are the COVID cases which have been as high as 5% of the (transportation and engine) workforce early in the year, although we’re below 2% today."

The "good news" is that CSX has seen improvements in new hire rates, he said.

"In fact, our new hire pipeline has increased by almost 300% since July. These efforts will continue through the remainder of the year and into 2022. We will continue hiring until we have staffed the network to match demand," Foote wrote.

To read Foote's entire letter to Oberman, click here. To read what Oberman wrote, click here.