The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

CSX: Near-term cost cutting may last beyond COVID-19

September by September
04/05/2020
in Blog
CSX: Near-term cost cutting may last beyond COVID-19
  • CSX has put 400 locomotives in storage since the end of March to cut costs in light of down volumes caused by the manufacturing and economic slowdown from COVID-19. CSX’s total volume for the first quarter was down 1% year-over-year
  • Crew starts were down 11% YoY in the first quarter (ended March 31), and the railroad has been working aggressively to reduce train starts further since the middle of March, said CFO Kevin Boone.
  • Total employee counts were down 7% at the end of the first quarter. Railroad executives did not say to what degree it is reducing staff further, but outlined a plan for train and engine (T&E) workers to sign up for a “retention board” from which furloughed employees could retain health coverage and come back to work with just 48 hours notice when volume returns. Foote said a large number of T&E staff have chosen this option over a traditional furlough which would require 15 days of notice before returning to work.

With 400 additional locomotives off the network, CSX’s total count is now less than 50% of the 4,000 it operated before implementing precision-scheduled railroading in 2017.

Foote said CSX is working to maintain what it sees as a high level of service despite the down volumes. Still, some rail shippers are going to notice the latest cuts.

“The reason that we’re reducing train starts is because their volumes are down and all we need to do is to have an honest dialog with our customers about the fact that we don’t think we can serve them five days a week, how about three,” said Foote.

The railroad now has the task of maintaining the service and reliability improvements it’s achieved through PSR, while cutting costs further than that strategy has dictated, executives explained.

“We have worked like dogs to get these service levels of this railroad up to where they belong and to win back credibility from our customers,” said Foote. “We continue to do that and we’re not going to, just because volumes are declining … walk away from that strategy,” added Executive Vice President for Sales and Marketing Mark Wallace.

Despite this concern, executives said CSX will also attempt to use the down volumes to permanently take more costs out of the network.

“We’re really starting to pivot and use the current environment to go after structural opportunities in our operation. We will continue to adjust our network as demand dictates going forward, but we are also making changes where assets will not need to come back in the future,” said Jamie Boychuk executive vice president for operations — adding that the railroad will still be ready to “not leave a carload behind” when volume growth returns.

Source: https://www.supplychaindive.com/ 

Tags: covid19CSX

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

Liên minh châu Âu thách thức sự bành trướng thương mại của Trung Quốc với mức thuế quan cao ngất ngưởng

EU Challenges China’s Trade Expansion With Landmark Tariff

3 years ago
0
Beer “silently” advanced in price

Beer “silently” advanced in price

10 months ago
0
Số hóa toàn diện ngành vận tải trong thời điểm dịch bệnh

From bikes to blockchain: Shipping industry goes digital in lockdown

3 years ago
0
Đại dịch Covid-19: “Đòn bẩy” cho các startup trong lĩnh vực y tế

Covid-19 pandemic: “Leverage” for startup in medical field

1 year ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftairlinesamazonAppleblockchainBoeingchinaCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEuropeEVFTAexportfedexgoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

    0 shares
    Share 0 Tweet 0
  • Procurement and Apple’s strategy

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00