Eastern US railroad CSX expects to haul slightly more coal for export 2024, despite recent disruptions caused by the collapse of the Francis Scott Key bridge in Baltimore, Maryland.

CSX expects “solid momentum” for export coal shipments and for its merchandise and intermodal businesses, the railroad said today. The carrier anticipates low- to mid-single digit volume and revenue growth in those business segments when compared with 2023. That is unchanged from what the company has previously projected.

CSX did not provide specific volume projections.

The 26 March collapse of the Key bridge and resulting closure of the Port of Baltimore cut off CSX’s Curtis Bay coal terminal from the seaborne market. The company is rerouting export coal shipments and intermodal traffic to other terminals but expects the port closing to result in a $25mn-$30mn per month hit to its coal business revenue.

CSX’s coal revenue dipped to $632mn in the first quarter from $633mn a year earlier. But the company’s export coal volumes rose by 2pc on the year prior to 11.6mn short tons (10.5mn metric tonnes) and offset a 17pc decline in domestic coal volumes, which fell to 9.6mn st.

The company has seen “robust demand” for metallurgical and thermal coal exports despite lower seaborne coal prices, it said. Domestic coal volume continues to be affected by ample power plant stockpiles and low natural gas prices, which are limiting utility coal consumption and demand for thermal coal.

CSX’s total traffic rose by 3pc from a year earlier in the first quarter to 1.53mn carloads and intermodal units, but the railroad’s revenue decreased to $2,400/unit from $2,494/unit, partially driven by pricing declines in export coal markets.

Intermodal unit volumes increased by 7pc from the first quarter of 2023 to 701,000 units. Chemicals, CSX’s largest merchandise carload sector, increased by 4pc to 167,000 units, and automotive shipments rose by 9pc to 94,000 carloads.

Agricultural and food products fell by 7pc from the same quarter last year to 114,000 carloads because of lower grain shipments during the quarter. In addition, fertilizers dropped by 6pc, minerals fell by 4pc, and metals and equipment declined by 4pc.

CSX’s shipments of forest products were nearly flat with a year earlier at 73,000 carloads.

View article here.