OMAHA, Neb. — BNSF Railway’s pretax profits increased slightly in 2024 as traffic-mix changes — more intermodal, less coal — and lower fuel surcharge revenue offset an overall 6.5% increase in freight volume.
For the year, BNSF’s pretax earnings increased 0.5%, to $6.64 billion, while revenue declined 0.5%, to $23.35 billion, the railway’s corporate parent, Berkshire Hathaway, reported on Saturday.
BNSF’s net income declined 1.1%, to $5.03 billion. The railway’s operating ratio was 68%, an improvement of 0.4 points.
The revenue decline, Berkshire said, was due primarily to a 6.6% drop in average revenue per carload, which was attributed to lower fuel surcharge revenue and changes in business mix.
Operating revenues from consumer products — which include intermodal and automotive shipments — increased 7.1%, reflecting a volume increase of 16.2% and lower average revenue per car/unit. The volume increase was primarily due to higher intermodal shipments from West Coast imports and volumes from a new customer.
Industrial products revenue declined 1.2%, reflecting slight declines in volume and average revenue per car. “The volume decline was primarily due to lower aggregates, taconite, minerals and waste shipments, substantially offset by higher plastics and petroleum products volumes,” Berkshire said.
Agricultural products revenue increased 4.5% as volume rose 7.4% due to higher grain, renewable fuels and fertilizer shipments.
Coal revenue fell 22.5%. “The decrease was attributable to a volume decrease of 17.9% and lower average revenue per car/unit. The volume decline was primarily due to lower natural gas prices,” Berkshire said.
Berkshire Hathaway Chairman Warren Buffett didn’t have much to say about BNSF in his widely read annual letter to shareholders. “Berkshire’s railroad and utility operations, our two largest businesses outside of insurance, improved their aggregate earnings. Both, however, have much left to accomplish,” he wrote.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now