Intermodal Network Update for Friday, January 5, 2024

Jan 5, 2024

BNSF operating teams remain focused on maintaining network fluidity following the temporary closure of two southern border rail crossings as we begin the new year. As reported, the BNSF embargo impacting transborder traffic at Eagle Pass and El Paso interchanges was cancelled and transborder shipping has resumed to normal operations.

Last week, we experienced a derailment on the Ravenna Subdivision in Waco, Nebraska, approximately 45 miles northwest of Lincoln. As communicated, both mainlines were impacted, but BNSF crews worked quickly to mitigate the impact and restored both lines to service the following day.

On January 1, BNSF welcomed Montana Rail Link (MRL) to our team. With this next chapter, customers with shipments across the state of Montana will experience enhanced capacity, increased efficiency and potential for freight growth.

Our key service metrics reflect typical holiday-related impacts on terminal dwell and volume. While overall velocity improved versus the week between the Christmas and New Year's holidays by more than 9%, it remains slightly below the November average as peak season draws to a close. Terminal dwell is elevated versus the prior week and month. Our local service compliance is unchanged from the week prior and remains improved from the previous month.

The BNSF Intermodal team is starting off the new year strong as we transition from the holidays. As previously communicated, our Phoenix facility experienced record volumes leading up to the holidays and has resumed normal traffic flow.

We are seeing consistent fluidity across the network, in particular on the West Coast, with facilities like Hobart achieving their best on-time departure performance on record in 2023. With our 2023 average weekly intermodal velocity increasing by 5.3% year-over-year compared to 2022, combined with the capital and technology investments we will continue to expand upon in 2024, we look forward to building on this momentum to continue to support your freight needs this year.

As always, our marketing representatives are ready to collaborate with you to find the solutions you need and to answer any questions you may have.

This weekend will bring a series of winter storms across the West Coast, Central Plains and northern Midwest. Across Washington, Oregon and California, winter storms will bring another round of strong winds and accumulating high-elevation snow. The Central Plains, as well as the eastern Dakotas and northern Minnesota, are expected to experience freezing rain and dense fog heading into the weekend. BNSF operations teams are monitoring the conditions in these areas and are ready to quickly respond to any service disruptions.

We thank you for your business and appreciate the opportunity to serve as your transportation service provider. We welcome your feedback and questions.