Ask Ahab 87

Issue 87

Dear Ahab:

BNSF and CSX responded to the proposed Union Pacific-Norfolk Southern merger by introducing some expanded intermodal offerings between the West Coast and Southeast of the United States. Will this create a true competitor to that UP-NS merged company, or is it simply a reactionary move?

– Rail Mix

The BNSF-CSX intermodal expansion is more than a reactionary move – it is a strategic counterpunch to the proposed Union Pacific-Norfolk Southern (UP-NS) merger.

Already BNSF-CSX is trying to replicate the single line efficiency that is being touted by UP-NS by offering customers enhanced connectivity from Kansas City to U.S East Coast ports, which should benefit many importers and exporters. The BNSF-CSX partnership is also promising to integrate infrastructure investments and digital platforms to improve reliability and operational flexibility.

However, the jury is still out as to whether or not this alliance will develop into a true competitor, as CSX’s rising costs could become an impediment to executing their plans properly. However, if things go right, this new partnership can offer shippers a compelling alternative.

Dear Ahab:

I recently read a study that said workforce shortages are one of the most serious problems in the logistics industry. What is being done in the logistics  industry to address this concern?

Dear Workforce Wonderer:

Workforce shortages continue to be a concern in the logistics industry, prompting many companies to adopt a range of strategies. For example, warehouses are investing in automation, like robotics, to reduce reliance on manual labor and boost efficiency. Other companies are also improving employee benefit packages to attract and retain top talent. Some organizations are being more open-minded in who they hire and are offering training programs to prepare employees for evolving technologies and improve their skill set.

Additionally, firms are partnering with universities and vocational schools to recruit from talent pools that are educated and trained to solve problems.

Still, shortages exist and will probably be around for quite some time. This means you should look to work with companies that have a history of attracting and retaining top-tier industry talent, which is generally a good indication that they are treated well.

This typically means that the company probably treats their customers well, too. That is a company I would want to help me  find solutions to today’s extremely complicated problems.