Eastern Railroad Discussion > CSX pricing increases?

https://www.reuters.com/article/us-csx-penalties/exclusive-csx-to-impose-hefty-fees-on-some-rail-customers-in-2018-idUSKBN1DM2R6

Is there any current penalty for delivery to the railroad of improperly loaded rail cars

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If only I could get a rate reduction when CSX performs poorly and costs me money. No service on CSX is guaranteed. Use at your own risk.

Proving once again that Harrison has no understanding of the supplier-customer relationship. Even when the customer is wrong, they are usually right. The customer could care less about the supplier's business model.

Shameful. I don't know why Anthony Hatch and other analysts aren't calling him out.

I quit taking my car to Pep Boys because they insisted on charging me for diagnostic fees that I didn't need. It was self-serving. I see similarities.

Where is the growth going to come from when CSX makes it more difficult to do business? Will customers get rebates when the released cars arent promptly pulled? Who will want to locate a new plant on CSX if this is what they can expect?

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From the article: "CSX spokesman Rob Doolittle said by phone on Wednesday the charges were “in line with efforts to optimize the use of assets,” including railcars. “These changes are intended to improve the efficiency of our operations,” he added."

CSX operations will become more efficient when shippers and receivers switch to other railroads (NS) or trucks.

When is Wall St. going to tell this idiot enough...

bluesboyst Wrote:
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> When is Wall St. going to tell this idiot
> enough?
When they stop paying dividends and the share price goes way down. The big shareholders, like pension funds, hedge funds, etc. do NOT care about anything but the money that a company generates. If the company looses business and it affects the bottom line, then and only then will they do something and throw that SOB out of control. Hopefully it will not be too late for CSX. Happy Thanksgiving folks.
John in White Marsh, Maryland

BNSF and especially UP can't be happy with this:

"Refrigerated cars will be charged $250 per day, up from $200."



Allen

CSX = Chaotic Situation Xpanding

As far as I remember, charges to shippers for overloaded or improperly loaded railcars are usually in large tariffs and mostly deregulated by the Staggers Act in 1980. This includes reciprocal switching charges too, which are usually applicable in long ago established switching districts in terminal areas where more than one railroad serves. Other charges include special train charges, and a lot more. Put another way. The RR can charge what it wants, and often get away with it because the costs to the shipper of objecting thru STB established procedures are too expensive. This is the beginning of EHH 'cherry picking' the available traffic. Next to come, after a bit of time, is when he wants to raise the rates of traffic he has forced to longer, circuitous routes "to cover the efficiency's of precision scheduled railroading" to keep profit margins the same to overcome circuity costs. For de-regulated traffic he can get away with it. For regulated traffic it might be a steeper road. Keep only the most profitable traffic. Working in the Food and Ag group for a number of years you realize that you have to haul a lot more cars of a producer of human and animal food products inbound low revenue raw products to benefit from the higher revenue outbound refined products. If you do not, soon you realize that the higher revenue refined products are more divertable to other railroads or truck. I guess some of this worked on Hunter's IC, CN and CP linear networks. It remains to be seen out it does on a complicated network system like CSX. Let's see where the stock's price is versus the 52 week high after 52 weeks have passed from when his 'affect' made the stock go up.

Those of us that work for this company wake every morning in hopes it's all just been a bad dream.

The only thing that will change any of this is $$ money $$. That's how this works. If the customers are driven away, and the railroad handles what is left and that is not enough to pay for much of anything, then and only then will the money people raise hell because THEY are finally losing their collective underwear.
Lets all come back to this in a year and see where it is and stop wasting our time. You never know, you might be able to buy a railroad for a dollar by then.

So do those of us who are retired Conrail, with at least three generations of CSX(B&O and WM) ancestors, and stockholder (certainly did not vote my 1000 shares for EHH). Even scarier is that I do believe CSX manages my Conrail pension....... But I have to say, as a guy who rather be outside on an even semi-decent day, the local CSX railroaders in my area do an exceptional job of professional railroading with virtually no supervision because they do not need it. Today, watch a two mile long train of 169 cars set of REAR end 61 cars by shoving entire train into yard on one track, pull out, then shove rest of train back on siding; in and gone in 70 minutes.

Nothing really new here folks. Accessorial charges are reviewed and are frequently increased annually if not more often. How much of an increase can depend on many factors such as market conditions, equipment forecasts and other fun stuff. Cars such as reefers, special flats and those handling HAZMAT commodities can be exposed to higher increases. Contractual agreements do exist with some customers to alter these charges and services. Can Google "CSXT Publication 8100" (it's public as are all carrier versions!) to learn more...

You are not the only ones...

tihess Wrote:
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> Those of us that work for this company wake every
> morning in hopes it's all just been a bad dream.

EHH's legacy may turn out to be industry re-regulation.

I don’t know a whole lot about price ncreases but I do know a little about customer service. I remember a better time when, on occasion, a customer would ask a train crew if they could move a car from one track to another. Thing is, that switch wasn’t on the orders and we were supposed to document that switch so the customer could be charged. That made for a pretty good relationship for what took about 5-10 minutes extra work. Does that even get done anymore?