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Ruth Favela
By Ruth Favela
Ruth Favela
Ruth Favela
Ruth Favela is Tomorrow.io's AI Marketer. She draws on over 5 years of experience as an editor, writer, and social media manager for AI startups, B2B SaaS, and B2C products. In her role, Ruth focuses on using AI tools to create customer-first content for the various industries Tomorrow.io has solutions for. She writes about weather innovations, AI/ML modeling, weather API applications, weather AI use cases, and much more.
Jul 26, 2024· 6 min

How CSX Can Solve for Weather Before Their Next Earnings Call

    TL;DR:

    • CSX faces weather-related challenges impacting operations and performance metrics.
    • Tomorrow.io’s Resilience Platform™ offers hyperlocal forecasting and predictive analytics to mitigate risks.
    • The platform can optimize scheduling, improve efficiency, and enhance employee culture and customer service.
    • CSX can streamline terminal operations, future-proof projects, and enhance competitiveness in intermodal markets.
    • By leveraging Tomorrow.io’s insights, CSX can transform weather challenges into a strategic advantage for operational resilience and customer service excellence.

    Since the 1830s, CSX has led the way in rail-based freight transportation, connecting major metropolitan areas across the eastern United States with a network that spans 20,000 route miles. As a company with such a long and storied history, CSX continues to adapt to modern challenges, including the impact of weather on its operations.

    In CSX’s April 17, 2024 earnings call, CEO Joseph Hinrichs highlighted the company’s commitment to maintaining strong customer service levels while improving network efficiency.

    He specifically addressed weather-related challenges, stating:

    “We faced some significant challenges in the quarter, including severe weather in January and the tragic Francis Scott Key Bridge collapse, which has impacted our operations, particularly our export coal business in Baltimore.”

    Executive VP and Chief Operating Officer Michael Cory noted that key performance metrics like velocity and dwell had moved in the opposite direction of desired outcomes, partly due to these disruptions. Despite these setbacks, CSX remains focused on its ONE CSX initiative, aimed at enhancing employee culture and customer experience to drive profitable growth.

    With hyperlocal forecasting, predictive analytics, and actionable insights, Tomorrow.io’s Resilience Platform™ can help CSX mitigate weather-related risks and optimize operations.

    Here’s how:

    Boosting On-Time Performance Through Weather-Informed Scheduling

    ‎Tomorrow.io’s advanced weather intelligence technology could provide CSX with precise, track-level forecasts across its 20,000-mile network.

    This granular insight would enable CSX to proactively adjust its precision scheduled railroading (PSR) plans in response to impending weather events.

    The platform’s AI-driven alerts can trigger automated protocols for securing rail yards against high winds or preparing for flood risks at critical bridges and tunnels. And by integrating Tomorrow.io’s real-time data with CSX’s train control systems, the railroad can dynamically adjust speeds and routing to maintain safety and efficiency in changing weather conditions.

    Real-World Application: Consider CSX’s crucial Chicago-to-New York corridor. Tomorrow.io’s probabilistic forecast feature could generate nuanced predictions across 51 potential weather scenarios for this route. If the forecast indicates a 70% chance of blizzard conditions in Cleveland, CSX could proactively reroute trains through a southern alternative, maintaining schedules and ensuring cargo arrives on time.

    CSX could use Tomorrow.io’s hyperlocal trend analysis for critical locations like Chicago Union Station to anticipate and mitigate operational challenges.

    Optimizing Train Velocity and Terminal Dwell Times

    CSX’s recent challenges with velocity and dwell times can be addressed through Tomorrow.io’s real-time monitoring and predictive analytics. By integrating these insights into their operations, CSX can better understand and anticipate weather-related disruptions, allowing for more effective resource allocation and operational adjustments.

    This could directly contribute to improving these critical performance metrics, ensuring that trains move more efficiently through the network despite weather challenges.

    Real-World Application: CSX could set up an automated protocol for their Atlanta Terminal Subdivision: if the probability of severe thunderstorms exceeds 60% within the next 6 hours, the system would automatically trigger a series of actions. These might include alerting yard managers to expedite loading/unloading operations, notifying incoming trains of potential delays, and activating contingency plans for rerouting sensitive cargo.

    Supporting the ONE CSX Initiative

    The ONE CSX initiative aims to enhance employee culture and customer service. Tomorrow.io’s insights can be seamlessly integrated into CSX’s operational protocols, ensuring employees are better informed and prepared for weather-related challenges. This not only enhances safety but also boosts efficiency, supporting a positive work environment and improving customer satisfaction through more reliable service.

    Real-World Application: Imagine severe weather was forecasted along a key route. Based on CSX’s automated workflows, Tomorrow.io would alert relevant team members—from dispatchers to maintenance crews. Each team member would acknowledge the alert and their assigned tasks through the mobile app, creating a clear chain of responsibility and action. A track maintenance crew working on the CSX line between Jacksonville and Miami could receive real-time alerts about an approaching thunderstorm, allowing them to secure equipment and ensure worker safety proactively.

    Streamlining Intermodal Terminal Operations and Expansion

    CSX’s focus on quickly bringing solutions to market, particularly in areas like Baltimore for Intermodal needs, can benefit greatly from Tomorrow.io’s technology. By providing crucial weather-related insights, Tomorrow.io can help in planning and executing quick setup operations, predicting windows of favorable weather for construction and implementation. This can reduce delays and increase the reliability of these new solutions, giving CSX a competitive edge in the Intermodal market.

    Real-World Application: For CSX’s intermodal expansion in Baltimore, Tomorrow.io’s platform could provide a 14-day forecast of construction-friendly weather windows. This would allow project managers to optimize scheduling for critical outdoor tasks, such as crane installations or paving, reducing weather-related delays and accelerating the terminal’s operational readiness.

    Future-Proofing Industrial Development Projects

    As CSX invests in diversifying its industrial development projects across key markets such as chemicals, minerals, forest products, and electric vehicle manufacturing, Tomorrow.io can offer tailored climate and weather insights. This ensures that site selection, construction, and operational planning are optimized for weather and climate risks, securing long-term sustainability and profitability of these investments.

    Real-World Application: When considering a new site for an electric vehicle manufacturing facility, CSX could use Tomorrow.io’s historical data to assess flood risks, temperature trends, and severe weather frequency. This information would inform decisions on facility design, such as elevated foundations in flood-prone areas or enhanced cooling systems in regions expecting temperature increases.

    Enhancing Competitiveness in Domestic Intermodal Markets

    With the domestic intermodal business facing moderate growth due to competitive truck market conditions, Tomorrow.io’s predictive weather insights can provide CSX with a significant advantage. By offering the most cutting-edge and hyperlocal forecasting, CSX can optimize shipping schedules and routes to avoid weather delays, making rail a more attractive option compared to road transport, especially during adverse weather conditions.

    Real-World Application: For a time-sensitive shipment from Los Angeles to Chicago, Tomorrow.io’s platform could alert CSX to potential snowstorms in the Rockies. CSX could then propose an alternative rail route to their customer, highlighting the ability to avoid weather-related delays that trucks might face, thus showcasing the reliability and flexibility of rail transport.

    Weather-Informed Strategic Planning for Network Resilience

    Tomorrow.io’s early warning systems and actionable insights can empower CSX’s leadership to make informed strategic decisions, particularly in mitigating risks associated with impending weather events. This aligns with CSX’s goal of maintaining strong customer service levels while running an efficient network, as disruptions can be managed more effectively with advanced notice and preparedness strategies.

    Real-World Application:  Using Tomorrow.io’s platform, CSX could implement a dynamic severe weather response system. For example, when the system forecasts a major winter storm approaching the Northeast corridor within the next 72 hours, it could automatically trigger a series of preparedness protocols ranging from repositioning snow removal equipment to prioritizing the movement of critical shipments ahead of the storm’s arrival. In doing so, CSX can enhance its operational agility, minimize weather-related disruptions, and maintain service reliability even in challenging conditions.

    The Future of CSX with Tomorrow.io

    By integrating Tomorrow.io’s Resilience Platform™ into its operations, CSX is poised to transform weather from a persistent challenge into a strategic advantage.

    ‎From optimizing daily train schedules to informing long-term infrastructure investments, Tomorrow.io’s insights will equip CSX to set new industry standards for operational resilience and customer service.

    Together, Tomorrow.io and CSX can revolutionize rail transportation, ensuring safer, more reliable, and efficient service across North America’s ever-changing climate landscape.

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