Speak with leaders in any industry — energy, manufacturing, agriculture, technology — and the theme stays the same: disruption. The same is true when I speak to executives not just among railroad customers, but in the rail industry specifically — from the operators to the marketers and even the human resources managers of the freight carriers and suppliers. There is no single source, but future generations will undoubtedly study, and hopefully learn from, the remarkable shifts that have occurred in just a few years regarding key economic matters, such as supply chains, the labor market, and views of work and monetary policy.
The aggregate of these factors continues to impact US freight railroads, a key benchmark for the economy that exists to meet the needs of myriad industries.
Looking forward, however, I am confident that a clearer picture will emerge.
Some measures of progress will correlate with broader economic trends. Yet a larger share of gains relates to the hard work of railroads and their employees, as well as customers and intermodal partners. Navigating the unprecedented events of the past few years has been a unique challenge for the entire economy, but railroads have taken focused steps, most notably increasing their employee ranks to meet demand, resulting in increased velocities and reduced dwell times — key indicators of overarching rail service. Having new contracts in place provides certainty to rail workers, providing our dedicated employee base with much-deserved historic wage increases.
Similarly, companies are expanding warehouse capacity, bringing more chassis online and more strategically considering shipping routes and manufacturing plans. Infrastructure dollars for public highways and ports, but also rail-related public-private partnerships, are pushing regionally significant projects forward that expand capacity and increase efficiencies.
Readers here understand commerce in a global economy is complicated. I am optimistic that logistics leaders will continue to apply the lessons we learned to move forward. I am certain railroads will lead in doing so.