This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Our greatest strength at BNSF is our ability to adapt and respond to the conditions of the economy. As the economy ebbs and flows, we have evolved to meet the needs of our customers and the demands of the market.
Our international segment remains challenging due to uncertainty with trade tensions and routes. We will have to wait for variables to play out before the picture becomes clear, but we remain optimistic in the strategic advantages of less distance, short transit times, and supply chain flexibility associated with utilizing the US West Coast as part of a global supply chain.
We are encouraged by consumer sentiment and confidence. Online retailing is now a mainstay of the economy. With consumers having money to spend, we see a solid future in this sector that should drive demand for overall intermodal shipments.
While a trucking industry surplus has created near-term headwinds, we see growth opportunities in the full truckload, LTL, and parcel segments, as our carrier partners want to grow with us as they deliver solutions for beneficial cargo owners.
We have addressed our customers’ needs by continuing to deploy technology critical to safety and service and adapting our network to increase efficiencies, productivity, and densities in our lanes and facilities. Our new intermodal service from the Pacific Northwest to Texas leverages our underutilized capacity in the coal corridor, offering the most efficient way to ship to the largest markets in Texas. Similarly, our new intermodal service from Los Angeles and Stockton to Northwest Ohio has created direct service options for our customers who ship between California and the Midwest, enabling a more efficient supply chain.
We are positioned for growth and ready to take advantage of opportunities in 2020.