“With current freight car velocity around 210 miles per day and trip plan compliance measures demonstrating sequential improvement, we look to maintain that progress as volumes strengthen into 2023.”

In context

“2023, as we backfill for attrition and target locations across the northern region, where crude challenges persist. In the near-term, we will continue to utilize borrow outs to supplement crew shortfalls. Another key element in increasing fluidity is the reduction of excess inventory, which builds the foundation for a strong and resilient service product. I am proud of the progress we made, which would have not been accomplished without the dedication and tireless work of the commercial and operating teams. Mother Nature threatened to derail some of that progress in the last weeks of December with blizzard conditions and extreme cool temperatures across much of the network. However, our team responded and we quickly rebounded demonstrating greater resiliency that we can build on in 2023. With current freight car velocity around 210 miles per day and trip plan compliance measures demonstrating sequential improvement, we look to maintain that progress as volumes strengthen into 2023. Now let’s review our key performance metrics for the quarter, starting on Slide 12, which continue to trail 2021’s results. Both freight car velocity and manifest and auto trip plan compliance were flat sequentially from last quarter’s results. Importantly, however, Intermodal trip plan compliance did improve 11 points sequentially, as supply chain congestion alleviated, resulting in less stack containers at the inland ramps. Near the end of the quarter, we successfully onboarded the Schneider Intermodal business and remain actively engaged to manage that transition. Turning to Slide 13 to review our network efficiency metrics, which also like 2021’s fourth quarter measures, locomotive productivity, workforce productivity and train length all declined sequentially driven by lower volumes”