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☆ A trucking and rail strategy that boomed during pandemic shocks is heating up again
▼ + stars: | 2024-03-25 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +10 min

The shift in the volume of freight being moved from the East Coast to the West Coast was first highlighted in February in the ITS Port Rail Ramp Freight Index. He said the disruptions from the Suez Canal and Panama Canal have contributed to an almost 20% increase into the West Coast ports. "For our ports, transloading containers is always going to happen and we have the capacity to do more." The West Coast container volume rebound will also have a ceiling. "We probably don't get to the historical 10-year levels of West Coast market share versus East Coast share," Chan said.

Persons: Michael Aldwell, Kuehne + Nagel, Chris Sikora, CH Robinson, Sikora, Tim Robertson, transloading, Paul Brashier, We're, Brashier, Bryan Kempisty, Matt Schrap, Bruce Chan, Chan, CH, Bascome Majors, J.B, Hunt, Schneider, JB Hunt, Jason Seidl, Knight, Swift, Seidl, Larry Organizations: Getty, U.S, Logistics, CNBC, Kuehne, Transportation Intelligence, . Logistics, DHL Global, ITS, Rail, ITS Logistics, Department of Transportation's, PortX Logistics, Harbor Trucking, J.B, Susquehanna International Group, Hub Group, Schneider, Union Pacific, Cowen Group, Universal Logistics Holdings, East, International Longshoremen's Association, Surface Transportation, Canadian Pacific, Kansas City Southern, Uber, Uber Technologies Locations: West Coast, East Coast, Panama, East, Red, Gulf, transload, transloading, West, Suez, Hunt, CH Robinson, Sea, Mexico, Kansas, Mobile , Alabama, Coatzacoalcos, Veracruz, Gulf of Mexico

☆ Boeing fined $51 million for violating Arms Export Control Act
▼ + stars: | 2024-03-01 | by ( Chris Isidore | ) edition.cnn.com time to read: +3 min

New York CNN —Boeing has agreed to pay $51 million for violating exports controls of military technology, including employees in China downloading sensitive data from numerous defense aircraft and missiles. The State Department found a total of 199 violations of the Arms Export Control Act by Boeing. It faces multiple investigations for a door plug blowing out on a 737 Max flight in January, leaving a gaping hole in the side of the Alaska Airlines flight. The NTSB has yet to determine blame or fault for the door plug incident on the Alaska Air flight. But Boeing CEO Dave Calhoun told investors in January, “We caused the problem, and we understand that.

Persons: ” “, ”, Boeing’s, Max, Dave Calhoun, “ Organizations: New, New York CNN, Boeing, State Department, Alaska Airlines, National Safety Transportation Board, Federal Aviation Administration, Justice Department, FAA, NTSB, Alaska Air Locations: New York, China, Australia, Canada, France, Germany, Hong Kong, India, Italy, Japan, Kenya, Morocco, Russia, Singapore, South Korea, Spain, Thailand, Taiwan, Ukraine, United Kingdom

☆ Norfolk Southern proxy fight draws heavyweight politicians and regulatory scrutiny a year after derailment
▼ + stars: | 2024-02-27 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +12 min

Norfolk Southern' has underperformed both its peers and the broader market over the last year. Norfolk Southern responded on Monday, rejecting that slate and announcing it would nominate former Amtrak CEO Richard Anderson and former U.S. For Ancora, which has a successful track record as an activist investor, the proxy fight at Norfolk Southern would be its largest ever. EdgePoint controlled 3.4 million Norfolk Southern shares as of Dec. 31, or about 1.5% of shares outstanding. Norfolk Southern has yet to set a date for the annual shareholder meeting.

Persons: Alan Shaw, Norfolk Southern Scott Mlyn, John Kasich, Donald Trump, Ancora, Shaw, Jim Barber, Jamie Boychuk, Richard Anderson, North Dakota Heidi Heitkamp, Heitkamp, Anderson, Frank Blake, Matt Freed, Joe Biden, Biden, Trump, it's, there's, Ancora's, Hunter Harrison, Norfolk Southern, Martin Oberman, Oberman, Amit Bose, Bose, Jim Chadwick, Chadwick, Ancora beneficially, Barber, Boychuk, Harrison, Mandel Ngan, Ancora's Chadwick, Amy Miles, Miles, Claude Mongeau, CNBC's Leslie Picker, Heidi Heitkamp Organizations: Norfolk Southern, CNBC, Norfolk, Ancora Advisors, EdgePoint Investment Group, Republican, Amtrak, Delta Airlines, Cargill, Home Depot, U.S, Energy, Workers, East, Trump, Biden, Southern, PSR, Federal Railroad Administration, Surface Transportation, Federal, UPS, Teamsters, Canadian, . Norfolk Southern, CSX, Deutsche Bank, AFP, Getty Locations: Norfolk Southern, East Palestine , Ohio, Ohio, Norfolk, North Dakota, Medtronic, East Palestine, Cleveland, Ancora

☆ Boeing was once known for safety and engineering. But critics say an emphasis on profits changed that
▼ + stars: | 2024-01-30 | by ( Chris Isidore | ) edition.cnn.com time to read: +22 min

Boeing is back in the headlines for all the wrong reasons again after the Alaska Airlines 737 Max 9 incident. Boeing workers participating in a "Quality Stand Down" at Boeing's 737 Max factory in Renton, Washington on January 25, 2024. One of the first Boeing 737 Max jets on the production line at the company's manufacturing facility in Renton, Washington, U.S., on Monday, Dec. 7, 2015. The airlines around the world that have already bought Boeing planes basically need to keep using those models, whatever the problems. Commercial pilots are certified on specific models and are not able to easily move from single-aisle to widebody versions of Boeing jets, let alone between a Boeing and an Airbus jet.

Persons: I’m, Dave Calhoun, we’ve, ”, “, Calhoun, Max, Jason Redmond, Stan Deal, Ed Pierson, McDonell Douglas, Critics, ” Ron Epstein, McDonnell Douglas, Jim McNerney, Tammy Duckworth, Aaron Schwartz, ‘ We’re, Richard Aboulafia, Joshua Drake, Boeing Calhoun, Bank of America’s Epstein, it’s, Pierson, Max ”, Robert Clifford, people’s, ” Calhoun, David Ryder, Aboulafia, Boeing’s Organizations: New, New York CNN, Boeing, Alaska Airlines, National Safety Transportation Board, Pilots, Max, Alaska Air, Getty, Foundation for Aviation Safety, CNN, “ Boeing, Bank of America, General Electric, Procter, Gamble, McKinsey, Co, GE, Associated, Pentagon, Capitol, FAA, Airbus, Joshua Drake Photography, Blackstone Group, Nielsen, Bank of, Aviation, Bloomberg, Ethiopian Aircraft Accident, US National Transportation Safety Board, Internal Locations: New York, Renton , Washington, AFP, Alaska, Soviet Union, Pacific, Chicago, Seattle, Washington, DC, Mobile , Alabama, Wichita, Oklahoma, Carolina, South Carolina, Calhoun, Indonesia, Ethiopia, Renton , Washington , U.S

SALT LAKE CITY (AP) — The U.S. Forest Service on Wednesday withdrew its approval of a right-of-way permit that would have allowed the construction of a railroad project through about 12 miles (19 kilometers) of roadless, protected forest in northeastern Utah. It would allow them to access larger markets and ultimately sell to refineries near the Gulf of Mexico. An attempt to reach the Seven County Infrastructure Coalition, which is spearheading the project, was unsuccessful Wednesday evening. In the August ruling, the Washington, D.C.-based appeals court decided that a 2021 environmental impact statement and opinion from the federal Surface Transportation Board were rushed and violated federal laws. The Forest Service's decision Wednesday to withdraw its approval was based on the appeals court ruling, but Ashley National Forest Supervisor Susan Eickhoff said the agency could issue a new decision if deficiencies in the environmental impact statement are addressed.

Persons: “, Ted Zukoski, Susan Eickhoff Organizations: LAKE CITY, U.S . Forest Service, Wednesday, Railway, Center for Biological Diversity, County Infrastructure Coalition, D.C, Transportation Board, National Locations: U.S, Utah, Ashley, Uinta, Gulf of Mexico, Colorado, Gulf, Washington, Eagle

Many companies have complained about poor railroad service over the past couple years as the industry worked to recover from the depths of the pandemic. It, however, welcomed regulators establishing some clear minimum service standards for railroads that never existed before and requiring railroads to report more details about their performance. Getting the rule right is important because roughly 75% of refineries and petrochemical manufacturers are only served by a single railroad. Canadian regulators have long had similar rules that allow companies to hire other railroads to deliver their goods. The Canadian rules don't require companies to prove they are getting poor service like the proposed new U.S. rules.

Persons: Scott Jensen, Martin Oberman, ” Oberman, Rob Benedict, Benedict, Ian Jefferies, ” Jefferies, Jeremy Ferguson, ” Ferguson Organizations: — Companies, Surface Transportation, American Chemistry Council, Chemistry, American, and Petrochemical Manufacturers, Association of American Railroads, Transportation Division, International Association of, Rail, Transportation Workers Locations: OMAHA, Neb, U.S, North America, Canada, Mexico

☆ U.S. Coast Guard will lead investigation of Titan implosion with help from Canada, France, UK
▼ + stars: | 2023-06-25 | by ( ) www.cnbc.com time to read: +7 min

The convening of a Marine Board of Investigation is the highest level of investigation conducted by the U.S. Coast Guard, Neubauer said. Investigators are working closely with other national and international investigative authorities, including the U.S. National Transportation Safety Board, the Transportation Safety Board of Canada, the French marine casualties investigation board and the United Kingdom Marine Accident Investigation Branch, Neubauer added. The Coast Guard board can make recommendations to prosecutors to pursue civil or criminal sanctions as necessary. The Coast Guard led the initial search and rescue mission, a massive international effort that likely cost millions of dollars. "The Coast Guard doesn't charge for search and rescue nor do we associate a cost with human life," said Rear Adm. John Mauger, of the Coast Guard First District.

Persons: Jason Neubauer, Neubauer, Kathy Fox, Fox, John Mauger, Shahzada Dawood, Suleman Dawood, Hamish Harding, Paul, Henri Nargeolet Organizations: . Coast Guard, Coast Guard Air Station Elizabeth, Coast Guard Air Station Elizabeth City , North Carolina, HC, U.S . Coast Guard, Titan, Marine Board, Investigation, U.S . National Transportation Safety Board, Transportation, Board of Canada, United Kingdom Marine, Coast Guard, U.S . Navy, Navy, Associated Press, Board, Canada, Authorities, Canadian Transportation, Royal Canadian Mounted Police, OceanGate Expeditions, U.S, Stockton Rush, Rescuers Locations: Coast Guard Air Station Elizabeth City , North, Cape Cod, U.S, St, John's, Newfoundland, Atlantic, Prince, Canada, Canadian, Bahamas, Everett , Washington, England, Pakistan, France, British

☆ Another cultish cost-saving formula gets off-track
▼ + stars: | 2023-03-29 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +9 min

Despite its multiple interpretations and approaches, success is widely gauged by a railway’s operating ratio, a simple measure of how much it spends to make a buck. Union Pacific’s peers improved similarly, indicative of the antiquated ways the industry had been deploying resources. Union Pacific also found itself unable to bring back enough furloughed workers in areas where they were most needed. “In a significant departure from the railroad industry's recent past, we deliberately moved away from a singular focus on operating ratio,” he told lawmakers. “If we wanted to drive [operating ratio] lower over time, we could,” the board wrote in a letter to shareholders in late 2021.

☆ After back-to-back train disasters, regulators approve the largest rail merger in decades creating a line that would stretch from Canada to Mexico
▼ + stars: | 2023-03-16 | by ( Ethan Dodd | ) www.businessinsider.com time to read: +7 min

Regulators approved a railroad merger that would create a single route stretching from Canada to Mexico. The rail industry has seen train accidents and labor disputes in recent months. "30-40% of the United States economy depends on a well-functioning railroad," Oberman said in the Wednesday press conference. That's why the STB has been "railing about some of the rail service problems and issues affecting the rail industry," he said. Oberman also argued shippers would not lose any existing rail competition from the merger.

☆ Merger Between Canadian Pacific and Kansas City Southern Is Approved
▼ + stars: | 2023-03-15 | by ( Esther Fung | ) www.wsj.com time to read: 1 min

The rail industry’s operations have come under scrutiny as a result of recent derailments and mounting safety concerns. A federal regulator has approved with conditions a merger between Canadian Pacific Railway Ltd. and Kansas City Southern, a $28 billion deal that created the first freight rail network linking Canada, the U.S. and Mexico. “The transaction meets the public interest test for approval,” said a Wednesday decision from the Surface Transportation Board, the economic regulator primarily overseeing freight railroads.

☆ Canadian Pacific’s Merger With Kansas City Southern Is Approved
▼ + stars: | 2023-03-15 | by ( Esther Fung | ) www.wsj.com time to read: 1 min

The rail industry’s operations have come under scrutiny as a result of recent derailments and mounting safety concerns. A federal regulator has approved with conditions a merger between Canadian Pacific Railway Ltd. and Kansas City Southern , a $28 billion deal that would create the first freight rail network linking Canada, the U.S. and Mexico. The Wednesday decision from the Surface Transportation Board, the economic regulator primarily overseeing freight railroads, cements the industry’s biggest merger in two decades.

☆ Senator Warren urges transport regulator to block U.S. railroad deal
▼ + stars: | 2023-03-03 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

March 3 (Reuters) - Democratic Senator Elizabeth Warren has urged a U.S. regulator to reject Canadian Pacific's (CP.TO) $31 billion deal to take control of U.S. railroad Kansas City Southern, saying it would hurt competition, prompt job losses and disrupt service, a letter seen by Reuters showed. The acquisition, which combines the sixth- and seventh-largest U.S. railroads by revenue, was agreed in 2021. The deal has since closed but Kansas City shares were transferred to a trust and the railroad must operate independently until the Surface Transportation Board, which oversees U.S. freight railroads, approves the transaction. The number of big U.S. railroads has already shrunk to just seven from 33 in 1980, Warren wrote. Last month, Senators Dick Durbin and Tammy Duckworth asked the board to defer a decision until it completes a Chicago region impact assessment.

☆ Union Pacific shares rise after CEO Fritz to step down amid investor pressure
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +2 min

Feb 27 (Reuters) - Shares of Union Pacific Corp (UNP.N) surged nearly 10% before the bell on Monday, a day after the U.S. railroad operator announced that its Chief Executive Lance Fritz would step down this year amid pressure from investor Soroban Capital Partners. The gains came after some Wall Street analysts backed the leadership change at the company, which has struggled with labor shortages and service issues. Union Pacific's shares have dropped more than 25% over the past 10 months. Other analysts said a new leadership has the potential to improve the company's operating ratio — a key profitability metric. In its most-recent quarter, the company flagged higher operating expenses caused by operational inefficiencies and the current economic environment hitting its revenue growth.

☆ Union Pacific CEO to leave after push from activist shareholder
▼ + stars: | 2023-02-27 | by ( Chris Isidore | ) edition.cnn.com time to read: +4 min

New York CNN —Union Pacific shares jumped 10% in premarket trading Monday after the railroad company announced CEO Lance Fritz will leave the company by year-end, following a call by an activist hedge fund for his ouster. Union Pacific just reported a record profit for the second straight year. And it said that the Surface Transportation Board, one of the regulators of freight railroads, ranked Union Pacific as providing the worst service among the major railroads. Union Pacific last year earned a net income of $7 billion, up about $500 million, or 7%, from the previous record profit it posted for 2021. Total employee compensation for the year came to $4.6 billion, far less than the $6.3 billion that Union Pacific spent repurchasing shares of stock in the period.

☆ Bank of America upgrades Union Pacific after railroad operator says new CEO coming in 2023
▼ + stars: | 2023-02-27 | by ( Hakyung Kim | ) www.cnbc.com time to read: +1 min

Bank of America says it's time to buy Union Pacific after the company announced its current CEO, Lance Fritz, would be stepping down this year. Analyst Ken Hoexter upgraded the railroad operator's shares to buy from neutral. Hoexter said the leadership change shows the company is prioritizing an operational fix after it was flagged for poor service by the Surface Transportation Board last year. The firm expressed optimism for the frontrunner for Fritz's replacement — former Union Pacific COO Jim Vena — citing his strong track record at the company. Hoexter raised his price target to $241 from $218, implying a 25% upside from Friday's closing price.

☆ Union Pacific pauses use of controversial freight rail embargoes
▼ + stars: | 2022-12-16 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +3 min

In a letter addressed to STB chairman Martin Oberman and sent to the STB on Friday by Fritz, the Union Pacific CEO stated, "We are taking a hard look at our use of congestion-related embargoes. Union Pacific carries nearly 27% of freight served by rail and nearly 11% of all long-distance freight volume. Unions have said that even as major freight rail companies add workers, the data supplied to STB on hiring is masking a longer-term trend of labor attrition. According to a Union Pacific spokesperson, total craft hiring was 27,753 in October 2022 compared to 32,315 in October 2019. Union membership data shows employment on all of the Class I rails, including Union Pacific, is down from just before the start of the pandemic and even down between October 2021 and October 2022.

☆ Freight railroad service is terrible, even without the threat of a strike
▼ + stars: | 2022-12-11 | by ( Chris Isidore | ) edition.cnn.com time to read: +9 min

But that doesn’t mean freight railroads are providing good service to their customers. Many of the problems tangling up the supply chain, driving up prices and slowing the economy can be traced to the steady decline in freight rail service in recent years. Some experts who represent rail customers who have complained about service in the past say service has gotten better since earlier this year. “The national freight rail network is broken, and the need for long-term rail reform is clear. Union Pacific (UNP), Norfolk Southern (NSC) and Berkshire Hathaway’s (BRKA) Burlington Northern Santa Fe all reported record earnings in 2021.

☆ Amtrak Calls for Investigation Over Freight-Caused Delays in Southwest
▼ + stars: | 2022-12-08 | by ( Ted Mann | ) www.wsj.com time to read: 1 min

Amtrak is seeking to use new federal funds to boost the frequency of train service outside its traditional Northeast stronghold; a train in New Orleans. WASHINGTON—Amtrak is asking federal regulators to investigate Union Pacific Corp. over delays its freight trains have inflicted on the Sunset Limited, a long-distance passenger route from New Orleans to Los Angeles that is its worst-performing route in the country. In a Thursday filing to the Surface Transportation Board, Amtrak blamed interference from Union Pacific’s freight trains for delays along much of the 1,997-mile route and requested economic damages as well as other penalties.

☆ Rail union bosses warn of election consequences as Senate moves closer to vote on labor deal to prevent strike
▼ + stars: | 2022-12-01 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +10 min

watch nowLeaders of the rail labor unions that have voted not to ratify the tentative labor deal tell CNBC that as the Senate moves closer to a vote on Thursday afternoon on legislation to prevent a rail strike, senators need to realize this is a humanitarian issue and their members will not forget who supported them. On Wednesday, the House passed the tentative rail labor agreement and additional legislation to add seven paid sick days, which has been one of the most important issues to rail workers in the breakdown of negotiations with freight rail companies. All three union presidents say they understand why President Biden had to push Congress to pass the tentative agreement. Biden's PEB deal 'missed the mark'Ferguson said the Presidential Emergency Board rail labor deal "missed a few marks and sidestepped a few, mainly our attendance policy issues." Supply chain congestion and rail embargoesThe unions argue that precision railroading and the lack of labor are the reasons behind congestion in the supply chain.

☆ Union Pacific CEO called to hearing in Washington as risk of rail strike rises
▼ + stars: | 2022-11-22 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +3 min

The Surface and Transportation Board is calling Union Pacific management including CEO Lance Fritz to appear at hearings December 13-14 about the freight railroad's use of embargoes. UP carries nearly 27 percent of freight served by rail and nearly 11 percent of all long-distance freight volume. The risk of a nationwide freight rail strike in December has been rising. We have quality of life issues," said Jeremy Ferguson, president of SMART-TD, which on Monday voted to reject the labor deal, with a rail strike now potentially starting as soon as Dec. 9. Ferguson, similar to fellow union president Dennis Pierce of BLET, referenced a recent CNBC interview with Fritz, during which the Union Pacific CEO laughed when asked about the risk of a rail strike.

☆ Rail workers at biggest unions split on contract, strike potential unclear
▼ + stars: | 2022-11-21 | by ( Eli M. Rosenberg | Eli Rosenberg Is An Investigative Tech Reporter For Nbc News. | ) www.nbcnews.com time to read: +6 min

Workers at two of the country's biggest rail unions split over a tentative contract their leaders had hashed out with freight rail companies — leaving open the possibility of a debilitating rail strike in the middle of the holiday season. The 28,000-member SMART-TD union, which represents rail conductors, voted no on the contract, after one of their divisions voted it down. A strike could also impact the country’s commuter rail system, with the potential to halt service entirely on some lines serviced by freight rail workers and cause backlogs and traffic snarls on others. The National Carriers’ Conference Committee, which represents rail companies in the bargaining process warned about the economic threats of a strike. The Association of American Railroads, the trade group which represents the rail companies, estimates losses of $2 billion a day.

☆ Rail strike potential grows, threatening to worsen supply chain backlogs, inflation
▼ + stars: | 2022-11-17 | by ( Eli M. Rosenberg | Eli Rosenberg Is An Investigative Tech Reporter For Nbc News. | ) www.nbcnews.com time to read: +12 min

That’s how much paid sick leave some freight rail workers are demanding from the rail companies before they sign new contracts. Rail workers say years of grievances about workforce cuts, coupled with new scheduling requirements, have pushed them to the brink of exhaustion. But if any of the unions decides to strike, all rail unions will honor the work stoppage. Kennedy said the union had never agreed to higher wages at the expense of a benefit like paid sick leave. “A rail strike, even one of short duration, would be catastrophic,” said John Drake, a vice president at the Chamber of Commerce.

☆ Union Pacific cuts volume growth forecast as worker shortage weighs
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +2 min

A Union Pacific rail car is parked at a Burlington Northern Santa Fe (BNSF) train yard in Seattle, Washington, U.S., February 10, 2017. REUTERS/Chris HelgrenOct 20 (Reuters) - Union Pacific Corp (UNP.N) on Thursday cut its annual volume growth forecast despite a rise in third-quarter shipments, as the U.S. railroad operator struggles with worker shortages. "Inflationary pressures and operational inefficiencies continued to challenge us," Union Pacific Chief Executive Officer Lance Fritz said in a statement. The company trimmed its forecast for full-year volume growth to about 3% from 4%-5%, even after a 3% rise in the third quarter led by higher coal and renewables shipments. Excluding a $114 million charge from the tentative labor deal, the company posted a net income of $3.19 per share, ahead of Refinitiv IBES estimates of $3.06 per share.

☆ U.S. railroad operators' volume woes to continue next year
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +3 min

Oct 19 (Reuters) - Volume woes at U.S. railroad operators are set to spill into next year as labor shortages continue to hurt the sector that is critical in connecting consumers with businesses and finished goods, according to analysts. The North America railroad industry has also been under scrutiny for working conditions. Railroad operators have tried to increase staffing levels, partly under pressure from U.S. regulator Surface Transportation Board, but have found it tough to recruit amid labor shortages. WALL STREET SENTIMENT** The current average analyst rating on Union Pacific shares is "buy", with 15 analysts rating it "hold", and 16 "buy" or higher. ** The current average analyst rating on Canadian National shares is "hold", with 18 rating it "hold", and six "buy" or higher.

But that doesn’t mean that the freight railroads are providing good service to their customers. Many of the problems tangling up the supply chain, driving up prices and slowing the economy can be traced to the steady decline in freight rail service in recent years. “Railroads understand that service is not at the level customers expect or deserve. “”I’m told by a lot of our members that this has been the worst rail service year in their careers. For rail customers there is basically no alternative for the products they ship.

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