Several macroeconomic trends are transforming our markets to be more service-sensitive, and we are challenging ourselves to respond with an enhanced service product and innovative solutions that help customers navigate an evolving supply chain.
We talk with our customers every day about what they see. Facing pressure from inflation and interest rates, they want to shift more of their business from highway to cost-effective rail. Trends such as e-commerce and the shift from “just-in-time” to “just-in-case” inventory strategies are also driving demand, as is the opportunity for our customers to achieve substantial reductions in carbon emissions when they ship by rail.
To serve these customers, we need to offer a level of service the market values. Our strategy at Norfolk Southern is to be a customer-centric, operations-driven service organization. That means we will maintain a relentless focus on service quality so that it becomes an enduring competitive strength. It also means offering more resilient service through future operational and economic disruptions, so our customers can build their supply chain strategies around us with confidence.
Partnerships across industries can also play an important role improving customer service. Recently, we collaborated on an innovative solution called OceaNS Bridge Express in response to supply chain dislocation. Hapag-Lloyd ships now arrive at the Port of Virginia, where cargo is loaded on Norfolk Southern trains for transport to Chicago, then switched to Union Pacific for delivery to Western markets — giving our shared customers another option to navigate West Coast port congestion. That is customer centricity in action.
Providing a strong and resilient service product, offering innovative solutions, and making rail more convenient for customers will put our industry in good position for a successful 2023.