What’s Happening With CSX Corporation Stock?

What’s Happening With CSX Corporation Stock?

Share to Linkedin CSX is likely to see a pickup in demand across its segments - Merchandise, Intermodal, and Coal - over the coming quarters. While the overall rise in industrial production will bolster the demand for merchandise shipments, the expected increase in power consumption globally and a favorable comparison to the lows of last year will likely result in higher coal shipments over the coming quarters. Note that EIA forecasts 8% growth in the U. S. coal production in 2021. Also, the trucking industry drivers shortage issue will bode well for railroad companies, such as CSX. Under intermodal transportation, trains are used for the long-haul portion of the shipment, while trucks are used to deliver goods to the originating intermodal terminal as well as the final destination, in case of domestic shipments. CSX's intermodal business saw a solid 10% volume growth in Q1, a trend expected to continue in the near term. In another development, CSX recently announced its plans to acquire Quality Carriers, a bulk liquid chemicals transportation provider with North America's largest tanker fleet. This acquisition will help CSX provide end to end transportation for chemical producers. Although there are multiple positive developments for CSX, we continue