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To: BNSF Agricultural Products Customers

Network Update for Friday, September 9, 2016

Operational Performance
The operation continues to sustain steady performance with good fluidity across the network. The weekly averages for car velocity and train velocity were essentially unchanged to slightly higher respectively, while locomotive velocity was down slightly versus the previous week. As peak maintenance activity winds down over the next several weeks, we will have the opportunity to generate greater performance improvements.

Total volume moved by the railroad last week exceeded the 200,000 level for the first time in 2016. No other railroad in North America has moved 200,000 units in any week this year. In addition, driven by strong export demand for grain, BNSF set an all-time volume record for agricultural products moved on the railroad during the month of August. As the traditionally busy fall peak season approaches, BNSF will continue to deploy additional resources as necessary, including more personnel and locomotives, to support the safest and most efficient train flows possible.

Last night, we experienced a software outage that caused temporary service disruptions at facilities on the network. The outage, which lasted just over two hours, caused some train delays and impacted operations at our intermodal facilities and terminals. Our team identified the cause and quickly restored service; all systems are again operating normally. BNSF Technology Services will conduct a further analysis of the event to prevent future recurrences.

Get the Latest Ag News in John Miller's Podcast
In this week's audio podcast, BNSF Group Vice President of Agricultural Products John Miller provides a network update and discusses this summer’s all-time record volume of corn and wheat movements. He also talks about how we expect to see a strong switch to moving soybean freight by the end of September to meet the Chinese demand.

Service Expectations for the Week Ahead
Much of the Northern Corridor will experience fall-like conditions during the first part of next week with the potential for nighttime temperatures below the freezing mark in parts of western Montana on Monday night. At this time, no significant service interruptions due to weather are expected during the upcoming week.

Below is a look at the key operational performance categories for the week ending September 8:

Total trains held for the week increased by more than four percent to an average of 51.4 trains held versus 49.4 trains during the prior week.
Versus the September 2015 average: up by 4.7%

Total trains on the system was down by more than two percent with an average of 1,461 trains on the system versus 1,498 trains during the prior week.

Locomotive velocity, measured in miles per day (MPD), was 293.3, which is down by nearly two percent from the 298.2 MPD recorded the prior week.
Versus the September 2015 average: better by 2.8%

Car velocity was essentially unchanged at 226.7 MPD versus 226.5 MPD recorded the prior week.
Versus the September 2015 average: better by 0.9%

Train velocity, measured in miles per hour (MPH), was up by nearly two percent from the prior week at 19.7 MPH.
Versus the September 2015 average: better by 1.1%

Total volume was up by nearly three percent with 202,628 units moved in Week 35 (ending September 3) versus 197,231 units in Week 34 (ending August 27).

Terminal dwell increased by more than one percent at 24.7 hours versus 24.4 hours recorded the prior week.
Versus the September 2015 average: up by 2.7%

As always, we thank you for your business and appreciate the opportunity to serve as your transportation service provider. We welcome your feedback and questions.

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