This story originally appeared on Trains.com.
OMAHA, Neb. — BNSF Railway’s profits, revenue and volume all increased for the third quarter, thanks to surging intermodal and agricultural shipments.
BNSF’s parent, Berkshire Hathaway, reported Saturday that the railroad’s quarterly operating income increased 13.4%, to $2 billion, as revenue grew 2.8%, to $5.9 billion. Expenses declined 2% for the quarter. The railway’s operating ratio was 65%, a 3.4-point improvement compared to a year ago, according to Berkshire Hathaway data.
Overall volume was up 8.3% for the quarter, but average revenue per carload and intermodal unit declined 5.2% in the quarter due to lower fuel surcharge revenue and business mix changes that included declines in coal and carload traffic.
Consumer products volume, which includes intermodal and automotive traffic, was up 16.7%. “The volume increases were primarily due to higher intermodal shipments from west coast imports and volumes from a new intermodal customer,” Berkshire said.
Industrial products volume declined 1.9%. “The volume decreases were primarily attributable to lower aggregates, taconite, minerals, and waste shipments, partially offset by higher volumes in petroleum products,” Berkshire said.
Agricultural products shipments surged 14.1% in the quarter due to increased grain shipments.
Coal volume declined 12.5% in the quarter, which Berkshire attributed to lower prices for natural gas, which displaced coal as a fuel used to generate electricity.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now