CSX stock jumped more than 20% last week as Hunter Harrison announced that he, with some help from Wall Street funds, was attempting to force change at CSX. Harrison, who walked away from $89 million at Canadian Pacific Railroad, has a history of implementing high train scheduling that drives efficiency and cost cutting. (We are big supporters of tight scheduling especially in warehouses – readers might want to look at http://www.warehouseoptimization.com/autoscheduler-warehouse-and-dock-sc...)
Oil, meanwhile, is staying above $50 per barrel as OPEC members and some non-OPEC members are cutting production aggressively. Equally aggressive are US frackers who see these higher prices combined with more efficient operations as an opening to ramp up production and exploration…so in some ways this is a race! In any case, this should keep diesel prices from hitting the stratosphere.