In general, 2024 was “a tough year” for the industry, but the situation “has shifted far more toward the positive and will continue to do so in 2025.” That’s the message CSX Executive Vice President Sales and Marketing Kevin Boone delivered at the Midwest Association of Rail Shippers (MARS) Summer Meeting, held at the Grand Geneva Resort in Lake Geneva, Wisc.
Boone stressed that CSX is focusing on “getting the word out of all the advantages rail presents to our customers.” CSX is especially focused on promoting rail services to new and returning manufacturing companies as the tariffs “encourage a return to U.S. manufacturing. He also pointed out that CSX expects the recovering truck market “will ultimately benefit CSX,” but that “the railroads need a positive cycle of services to regain shipper confidence.”
Aaron Girard, Senior Vice President of Logistics, Seneca Foods, had a rather different take. He gave what I’d call a “no hold barred” presentation on the difficulties shippers are having with rail services. “Rail’s value proposition is diminishing,” he said, focusing on the “inconsistent wwitching shippers experience.” He pointed out that short lines “provide great local service and act like true entrepreneurs.” On a positive note, Girard said he is “extremely pleased” with the reporting he receives with his TrinityRail connection to RailPulse. “The reports leave no doubt or confusion regarding railcar delivery of products or any reporting of damage to lading in transit,” he noted.
Walter Kemmsies, Trade, Logistics & Infrastructure Strategist, The Kemmsies Group, gave a crisp overview of the present economic situation. He highlighted changes to global macroeconomics structure and growth:
- “China can be replaced by Vietnam as it is not severely affected by tariffs.
- “The declining working age population growth rate.
- “Subsidies to manufacturing due to the U.S. and Europe pulling away from China.
- “Technological advances such as automation, robotics and artificial intelligence. Overcoming significant labor shortages in the U.S. requires significant investment in productivity growth such as automation.
- “The East Coast benefits if importers shift supply chains toward Western Asia (e.g., India, not Mexico).
- “Vietnam is already gaining market share of low-priced product manufacturing. India is also gaining strength. But be aware that China has more than 60 ports capable of handling the 14,000+ TEU vessel capacity, with India a distant second.
- “Due to U.S. domestic population trends, Southern urban areas and ports will be safer places to invest in industrial real estate.”
The Luncheon Fireside Chat was with John Orr, Executive Vice President and Chief Operating Officer, Norfolk Southern. Orr projects himself as a strong listener willing to hear problems and solutions. The chat focused on NS’s initiatives on customer service, safety and new technology developments.
The conference’s most pleasing highlight was the announcement of the MARS Bill Schauer Industry Impact Award. This is in recognition of his industry service and more than 25 years as a MARS and National Association of Rail Shippers (NARS) member.
