OMAHA, Neb. — BNSF Railway’s revenue and profits rose in the second quarter despite volume being down nearly 6%, Berkshire Hathaway, the railroad’s parent company, reported on Saturday.
The railroad’s operating income rose 7%, to $2.37 billion, as revenue grew 15%, to $6.45 billion. Earnings improved, Berkshire said, as revenue per carload and intermodal unit increased due to a combination of higher rates and fuel surcharge revenue as diesel fuel prices spiked.
BNSF’s operating ratio increased 2.8 points to 63.2% in the quarter as fuel expenses shot up 84%.
Volume was down across the board in the railroad’s four business units.
Consumer products volume, which includes intermodal and automotive traffic, declined 7.4% in the quarter. “The volume decreases were primarily due to lower international intermodal shipments resulting from supply chain disruptions, partially offset by modest increases in domestic intermodal and automotive volumes,” Berkshire said.
Industrial products traffic declined 3.9%. “The volume decreases were primarily due to a decrease in petroleum shipments related to lower demand for crude by rail and network challenges, with the decrease in the first six months partially offset by increased volumes in other product categories,” Berkshire said.
Agricultural products volume 3.2%. “The volume decreases were primarily due to lower grain exports, partially offset by higher volumes of renewable diesel and oil feedstocks,” Berkshire said.
Coal traffic declined 2.9%, which Berkshire said was primarily due to “network challenges.”
BNSF has been struggling with crew shortages on the Southern Transcon, its busiest route, which has led to congestion.
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