News & Reviews News Wire Regulators, concerned about service, order big four U.S. railroads to continue to provide detailed performance data

Regulators, concerned about service, order big four U.S. railroads to continue to provide detailed performance data

By Bill Stephens | October 28, 2022

Surface Transportation Board notes progress railroads have made toward performance goals, but is concerned service has not returned to pre-pandemic levels

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Train crossing a diamond
CSX eastbound container train Q022 crosses the New England Central diamond at Palmer, Mass., as New England Central train No. 608 waits to head south on Feb. 24, 2020. Scott A. Hartley

WASHINGTON — Citing ongoing service problems at the big four U.S. Class I railroads, federal regulators today ordered BNSF Railway, CSX Transportation, Norfolk Southern, and Union Pacific to continue reporting expanded performance metrics for an additional six months.

The Surface Transportation Board in May ordered all Class I systems to provide weekly reports that cover metrics such as on-time performance, local service data, and the level of unplanned recrews for six months. To monitor the extent of the crew shortages that have created service problems, the board also ordered the railroads to provide monthly employment reports.

The big four U.S. systems also were required to submit operational performance goals as well as biweekly reports noting their progress toward those targets.

“The most recent data show that the Four Carriers are currently meeting some of their six-month targets for service improvement, and many key performance indicators are trending in a positive direction,” the STB said in its decision today. “However, the data continue to validate the anecdotal information that continues to be reported to the Board regarding significant service issues. Key performance indicators, such as velocity, terminal dwell, first-mile/last-mile service … operating inventory, and trip plan compliance show that railroad operations remain challenged generally, and particularly when compared to pre-pandemic 2019 levels. Accordingly, continued monitoring is needed.”

The expanded reporting requirement will run until May 5 and mandate that the railroads submit new performance goals for May 2023.

The decision noted the progress that the big four systems have made toward their year-end targets for train velocity and terminal dwell, local service performance, average trains holding per day, and on-time performance. But of the four railroads, only Norfolk Southern has clearly met its train and engine crew hiring and employment goals, the STB noted. The board ordered BNSF and UP to explain discrepancies in their employment data. And regulators said they were “most concerned with CSXT’s ability to meet its targets for T&E employees.”

A synopsis of the board’s view of each railroad’s performance:

BNSF Railway

“While BNSF has started to consistently meet its velocity and terminal dwell targets in recent weeks … BNSF has not yet met its targets for local service performance and average trains holding per day. With respect to [on-time performance], BNSF has been consistently above its targets for intermodal and merchandise traffic in recent weeks, although BNSF’s performance in several unit train categories has fluctuated above and below its targets.”

“Additionally, BNSF’s recent performance shows improvement compared to its 2019 velocity and terminal dwell metrics. However, recent data for local service performance, average trains holding per day, and most OTP metrics indicate that these indicators on average have not yet returned to 2019 levels.”

CSX Transportation

“While CSXT has started to consistently exceed its velocity and terminal dwell targets in recent weeks … CSXT has not yet met its target for [first mile/last mile]. For [trip plan compliance], CSXT has exceeded its targets for coal unit, intermodal, manifest, and grain unit traffic in recent weeks. Additionally, CSXT’s recent performance shows a similar velocity level to that in 2019. However, CSXT’s recent data for FMLM, terminal dwell, and unit train TPC show that these indicators on average have not yet returned to 2019 levels.”

The board also ordered CSX to provide more information about how it calculates on-time performance for unit trains.

Norfolk Southern

“NSR has consistently exceeded its velocity target in recent weeks, as well as its targets for on time delivery of intermodal and manifest traffic. Additionally, NSR has met its terminal dwell target in some recent weeks. However … the recent data show that NSR is not yet consistently meeting its local operating plan adherence target, and its velocity, terminal dwell, and local operating plan adherence have not returned to 2019 levels.”

Union Pacific

“The data indicate that UP’s performance is consistently below its targets for velocity and TPC for intermodal, grain unit, and crude oil unit traffic. Furthermore, UP has not yet met its target for cars per carload. In several recent weeks, UP’s operating inventory has been below its target, signifying that it has made some positive steps towards reducing network congestion. UP has met its FMLM performance target and its TPC targets for manifest and coal unit traffic in several recent weeks. However, UP’s recent data for all indicators (i.e., FMLM, car velocity, operating inventory, cars per carload, manifest and unit train TPC) show that on average they have not yet returned to 2019 levels.”

5 thoughts on “Regulators, concerned about service, order big four U.S. railroads to continue to provide detailed performance data

  1. everyone blames the pandemic, all these service issues started with PSR. get rid of PSR and the wall st worshipping CEOs and I big part of the problems will go away

  2. The late 19th Century saw the rise of the “Robber Barons”, men who controlled business and industry with ruthless determination, cut throat practices, bullying as well as stock manipulation and underhanded crooked deals and payoffs. They also stifled and cut off and growth and competition by consolidating their companies and forcing the public to buy or use their services. Eliminating competition by buying a rival company and either merging or absorbing it into their empire or shut it down. The Big Four railroads are doing no less today with their business model and practices. Pay their CEOs big bonuses for doing nothing except cutting and elimination and to satisfy Wall Street and their greedy stockholders and investors. The public should wake up and realize that your lives and fate is controlled and dictated by the monster called Wall Street and their minions
    Joseph C. Markfelder

  3. we have noticed adjustments in manifest enroute work onCSX in upstate NY, some more moves added to locals to keep things fluid at Waste Management, and even the return of a Trainmaster to the scene for priority train breakdowns out on the road, as opposed to a phone call if anybody could find one. Still a REALLY long way to go according to conversations on the radio of crews and dispatchers and utter stupidity of the so-called chiefs.

  4. Oh, but executive pay and bonuses are at record-high levels, compared to pre-Covid levels. Remember when executive compensation was tied to business growth and service performance, and therefore increased revenue, rather than relentless cost-cutting?

  5. When will RR’s start investing in plant and actively work to GROW traffic? They have been trimming branches and cutting service (# of switches/week) and anything they can to up the OR but ignoring giving the customer better service. Buy backs of stock is great for the short term but eventually the organization will die.

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