With the holiday season in full swing, shippers are looking ahead to 2024. Many companies are busy finalizing their transportation partnerships for the new year, and rail may be a more attractive option than in years past.

Next year’s transportation environment is expected to be colored by gains in three significant areas: service, sustainability and technology. Rail has been making serious gains across all three, making it a viable and affordable option for shippers.

“The environmental advantages of rail, greater supply chain transparency and new service solutions will all support growth in the rail market share versus trucking,” according to CSX Executive Vice President and Chief Commercial Officer Kevin Boone. “Although soft truck rates have muted conversion opportunities, the environment is improving for shippers to evaluate opportunities to achieve favorable supply chain economics with rail.”

Continued service improvements

Service levels are expected to improve throughout 2024 due to a combination of economic factors and new solutions being introduced to the market. Pandemic-related supply chain congestion has dissipated. At the same time, innovative transportation companies like CSX have ramped up their service offerings.

Service improvements in rail, specifically, have opened up new opportunities for shippers that have historically opted for other modes of transportation due to perceived inefficiencies in the more cost-effective rail space.

“Customers have long expressed a desire to increase their use of rail as a more cost-effective transportation solution,” Boone said. “As rail provides better service — including improved customer service platforms and more attractive service options — the past obstacles for shippers to take full advantage of rail economics are being overcome.”

CSX, specifically, has seen service gains over the past couple years, with improvements approaching record levels at the end of 2023. Those improvements include the introduction of innovative service solutions to provide shippers with valued-added services and dock-to-dock transportation products.

Sustainability gains

Environmental stewardship is expected to be top of mind for shippers in 2024. Companies will be working to meet their own sustainability goals, align with updated government-issued guidelines and meet the demands of their increasingly climate-conscious customer bases.

Transportation emissions are one of the biggest challenges standing between shippers and their environmental goals. This makes rail an attractive alternative to trucking, as it is naturally a cleaner way to move goods.