Record Q3 revenue for US Class I railroads as diesel prices drive freight from trucks to rail
Union Pacific, Norfolk Southern and CSX posted record third‑quarter revenue after record diesel prices pushed shippers onto rail. Intermodal volumes rose double‑digit percentages, while fuel surcharges accounted for a large share of the revenue growth. Higher diesel also lifted operating costs, squeezing margins for the three carriers.
Why it matters
The companies said the surge in fuel surcharge revenue boosted top‑line results but did not fully offset higher fuel expenses, leaving margins under pressure. Executives noted that pricing benefits will likely materialise after the 2027 intermodal contract reset, which could improve profitability later in the cycle.
Key facts
- 1Diesel prices reached a record $6.53 per gallon in September, according to AAA data. investing.com
- 2Union Pacific’s domestic intermodal volume rose 13% year over year in Q3. investing.com
- 3CSX’s intermodal volume grew 7% year over year in Q3. investing.com
- 4Norfolk Southern’s intermodal volume increased 3% year over year in Q3. investing.com
- 5CSX reported Q3 revenue of $4 billion, up 12% YoY. finance.yahoo.com
- 6Union Pacific reported Q3 revenue of $7.2 billion, up 15% YoY. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.