CSX adds new rail service as Port of Baltimore workarounds continue to develop

CSX Corporation (NASDAQ:CSX) confirmed on Monday that it is starting a new dedicated freight rail service between Baltimore and New York. The new rail service will help CSX’s customers that may have faced disruption as a result of the closure of the Port of Baltimore after it collapsed on March 26 due to being struck by a large cargo vessel.

Rail freight inbound to the Port of Baltimore that was diverted to the Port of New York and New Jersey will be rerouted using the new CSX service. In addition, some outbound freight from the Port of Baltimore will be able to utilize the new CSX line. The rail freight giant did not disclose the estimated amount of freight that will be sent on the new rail service.

CSX also indicated to CNBC that strategic partnerships with some steamship lines will allow it to transport freight between New York and Baltimore.

CSX statement: “While the timeline for resuming freight operations at the Port of Baltimore remains uncertain, we are in constant communication with our customers, providing timely updates on the status of their shipments. CSX is fully dedicated to meeting our customers’ transportation needs during this challenging period.”

While the overall impact of the bridge collapse is still being assessed, analysts noted over the weekend that early predictions of cargo gridlock in certain industries may have been overstated.