CSX Corporation (CSX) 2020 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the CSX Corporation Q2 2020 Earnings Call. As a reminder, today's call is being recorded. (Operator Instructions)

各位女士、先生們，下午好，歡迎參加 CSX Corporation 2020 年第二季財報電話會議。提醒各位，今天的電話會議將被錄音。(接線員指示)

For opening remarks and introduction, I would like to turn the call over to Mr. Bill Slater, Chief Investor Relations Officer for CSX Corporation.

接下來進行開場致詞與介紹，我想把電話交給 CSX Corporation 投資人關係長 Bill Slater 先生。

Thank you, and good afternoon, everyone. Joining me on today's call are Jim Foote, President and Chief Executive Officer; Mark Wallace, Executive Vice President of Sales and Marketing; Kevin Boone, Chief Financial Officer; and Jamie Boychuk, Executive Vice President of Operations.

謝謝，各位下午好。今天與我一同參與電話會議的有：總裁暨執行長 Jim Foote；銷售與行銷執行副總裁 Mark Wallace；財務長 Kevin Boone；以及營運執行副總裁 Jamie Boychuk。

On Slide 2 is our forward-looking disclosure, followed by our non-GAAP disclosure on Slide 3.

第 2 張投影片為我們的前瞻性聲明揭露，接著第 3 張投影片為我們的非 GAAP 揭露。

With that, it is my pleasure to introduce President and Chief Executive Officer, Jim Foote.

接下來，我很榮幸介紹總裁暨執行長 Jim Foote。

Thanks, Bill, and thank you to everyone for joining our call this afternoon. Wow, where do I start talking about this quarter. This was the most disruptive quarter I have experienced in my career, with both the fastest decline in volumes followed by one of the most rapid increase in volumes in the company's history. Reacting to those extreme swings while dealing with the pandemic has been and continues to be challenging. CSX employees have been absolutely amazing in their response, and I want to thank them for the hard work and dedication to keep the railroad running well. And I would be remiss if I didn't extend special recognition to our employees and their families who have fallen ill from the virus. Our thoughts are with them.

謝謝你，Bill，也感謝各位今天下午加入我們的電話會議。哇，這一季我該從何說起。這是我職涯中經歷過最具破壞性的一季：運量以最快速度下滑，隨後又出現公司史上最迅速的運量回升之一。在應對這些劇烈波動的同時還要面對疫情，確實一直很具挑戰，且挑戰仍在持續。CSX 員工的應對表現非常出色，我要感謝他們的辛勤付出與投入，讓鐵路系統得以良好運行。此外，若我未特別向我們因病毒而染病的員工及其家屬致上關懷，將是我的疏忽。我們與他們同在。

In difficult times, companies -- strong companies adapt, and that's exactly what we have done. Despite all that has been accomplished to date in CSX's transformation, we are still finding opportunities to be better, faster and more reliable. The actions taken over the past months will not only make CSX more efficient, but more importantly, they will allow us to be better delivering service to our customers in the future.

在艱難時刻，企業——強大的企業會適應，而這正是我們所做的。儘管 CSX 的轉型迄今已取得許多成果，我們仍持續找到機會，讓自己更好、更快、更可靠。過去幾個月採取的行動不僅將使 CSX 更有效率，更重要的是，將使我們未來能為客戶提供更優質的服務。

Turning to the presentation, on Slide 5 is an overview of our financial results, which Kevin will discuss later. Due to the economic impact of the pandemic, second quarter EPS declined 40% to $0.65 while the operating ratio increased to 63.3%.

回到簡報，第 5 張投影片為我們財務結果的概覽，Kevin 稍後會進一步說明。由於疫情對經濟的衝擊，第二季每股盈餘（EPS）下滑 40% 至 0.65 美元，而營運比率上升至 63.3%。

On Slide 6 you could see that all business lines were negatively affected by the pandemic. Second quarter revenue declined by 26% year-over-year on 20% lower volumes. Sequentially, the volume decline was the largest in CSX's history, and almost twice as severe as any quarter during the 2009 recession.

在第 6 張投影片中可以看到，所有業務線都受到疫情的負面影響。第二季營收年減 26%，運量下降 20%。就季比而言，運量下滑幅度為 CSX 史上最大，且幾乎是 2009 年景氣衰退期間任何一季的兩倍嚴重。

Merchandise revenue and volumes declined 22%, with the largest headwind coming from the automotive plant shutdowns. Automotive volumes declined 71% in the quarter, including 6 consecutive weeks where volumes were down more than 90% each week. Intermodal revenue declined 18% on 11% lower volumes, as both the international and domestic businesses were impacted by lower consumer and industrial demand.

一般貨運（Merchandise）營收與運量下滑 22%，其中最大逆風來自汽車工廠停工。本季汽車運量下滑 71%，其中連續 6 週每週運量降幅都超過 90%。聯運（Intermodal）營收因運量下降 11% 而下滑 18%，國際與國內業務皆受到消費與工業需求下滑的影響。

Coal revenue decreased 48% on 44% lower volumes. Both the domestic and export markets were negatively impacted by weak demand from the combination of a reduced power consumption, low natural gas prices and export benchmark prices. Other revenue declined 19% due to lower affiliate revenue and declines in demurrage charges and intermodal storage revenues.

煤炭營收因運量下降 44% 而減少 48%。國內與出口市場皆受到需求疲弱的負面影響，原因包括用電量下降、天然氣價格偏低以及出口基準價格走低的綜合因素。其他營收下滑 19%，主要因關係企業營收降低，以及滯期費（demurrage）與聯運倉儲收入下降。

Turning to Slide 7. Safety remains my top priority. Even though we had an all-time low number of train accidents in the quarter, the frequency rates for both train accidents and personal injuries increased due to the lower level of volumes. While CSX continues to lead the industry year-to-date in safety, we must do better. We will never be satisfied with our performance if any of our employees get injured while at work, and we are undertaking a comprehensive safety engagement initiative this quarter, focused on strengthening critical rules compliance and systemically identifying and eliminating unsafe acts.

接著看第 7 張投影片。安全仍是我最優先的事項。儘管本季列車事故數創歷史新低，但由於運量水準較低，列車事故與人身傷害的發生頻率率（frequency rates）反而上升。雖然 CSX 今年迄今在安全表現上仍領先同業，但我們必須做得更好。只要有任何員工在工作中受傷，我們就不會對自身表現感到滿意；因此本季我們正推動一項全面性的安全參與計畫，重點在於強化關鍵規章遵循，並以系統化方式辨識並消除不安全行為。

Moving to Slide 8. Let's review our operating performance for the quarter. Despite the challenging operating environment, the railroad continued to run at a high level. The operating team successfully implemented significant plan changes while maintaining fluidity and driving efficiencies across the railroad. In addition to these service design changes, we also drove increased yard productivity, setting a new record for cars handled per hour worked. Additionally, CSX continues to lead the U.S. Class I railroads in fuel efficiency, setting a new quarterly operating record of 0.96 gallons of fuel per 1,000 gross ton miles.

來到第 8 張投影片，我們回顧本季的營運表現。儘管營運環境充滿挑戰，鐵路系統仍維持高水準運行。營運團隊在維持運行順暢的同時，成功落實重大計畫調整，並在全線推動效率提升。除這些服務設計變更外，我們也提升了場站（yard）生產力，創下每工時處理車輛數的新紀錄。此外，CSX 在燃油效率方面持續領先美國一級鐵路（Class I railroads），本季創下新的營運紀錄：每 1,000 總噸英里耗油 0.96 加侖。

Fuel efficiency, along with ESG more broadly, are priorities for our team. We are focused on leveraging the inherent benefits railroads have as the most sustainable mode of land-based transportation, and are working hard to make sure CSX is building on these benefits to continue leading the industry in safety and sustainability.

燃油效率，以及更廣義的 ESG，都是我們團隊的優先事項。我們專注於發揮鐵路作為最具永續性的陸上運輸方式所具備的先天優勢，並努力確保 CSX 能在此基礎上持續領先業界，在安全與永續方面保持領導地位。

The topics of ESG and driving positive social impact are critically important to CSX, our customers and the communities we serve, and we look forward to providing additional detail on key initiatives in our sustainability report to be released later this month.

ESG 與推動正向社會影響對 CSX、我們的客戶以及我們所服務的社區都至關重要；我們也期待在本月稍晚發布的永續報告中，提供關鍵倡議的更多細節。

Slide 9 clearly highlights the unique operating challenges faced during the quarter, as volumes dropped more than 25% and then bounced back nearly 20% since Memorial Day. The team acted decisively to adjust the network for the changing volumes, reducing total train starts roughly in line with volume declines and realizing line of road efficiencies even greater than the volume declines. These results reflect the strength of our operating model and the ingenuity of our team. In addition to consolidating trains across the network, they found new opportunities to integrate auto and unit train business into the merchandise and intermodal networks as well as other unique service changes to be -- to more efficiently leverage yard and local operations.

第 9 張投影片清楚突顯本季所面臨的獨特營運挑戰：運量下滑超過 25%，而自陣亡將士紀念日（Memorial Day）以來又反彈近 20%。團隊果斷採取行動，因應運量變化調整路網，將列車開行數（train starts）總量大致按運量降幅同步下調，並實現甚至高於運量降幅的路線運行效率（line of road efficiencies）。這些成果反映了我們營運模式的韌性與團隊的創造力。除了在全網整併列車外，他們也找到新的機會，將汽車與整列列車（unit train）業務整合進一般貨運與聯運網路，並進行其他獨特的服務調整，以——以更有效率地運用場站與地方作業（local operations）。

When volumes began to recover late in the quarter, we started recalling employees and added train starts to meet demand, but we are confident that many of the changes we made during this period are durable and make CSX a stronger company.

當運量在季末開始回升時，我們開始召回員工並增加列車開行數以滿足需求；但我們有信心，在此期間所做的許多變更具有長期性，並使 CSX 成為更強健的公司。

Slide 10 shows our hourly trip plan performance in the quarter. Carload trip plan performance of 80.5% was consistent with first quarter results, and intermodal performance remained high at 94%. Volume has been volatile, but we are working closely with our customers to ensure they are appropriately resourced and prepared to handle incremental volume when it comes.

第 10 張投影片顯示我們本季的每小時行程計畫（hourly trip plan）績效。整車（carload）行程計畫達成率 80.5%，與第一季結果一致，而聯運表現仍維持高檔，達 94%。運量波動很大，但我們正與客戶密切合作，確保他們具備適當資源並做好準備，以便在增量運量到來時能夠承接。

I'll now turn it over to Kevin for more detail on the quarter.

接下來我把電話交給 Kevin，請他就本季提供更多細節。

Thank you, Jim, and good afternoon, everyone. The second quarter of 2020 represented the most significant revenue drop in the company's history. Faced with an $800 million revenue decline, our company clearly responded. From a cost perspective, our focus through this period was to accelerate initiatives that will deliver sustainable structural cost reductions that position us to leverage growth as the economy recovers. As a leadership team, we were deliberate in our strategy, focused on avoiding the pitfalls on making short-term cost decisions to the detriment of growing the business profitably, as the economy rebounds from the pandemic.

謝謝你，Jim，各位下午好。2020 年第二季是公司史上營收下滑最顯著的一季。面對 8 億美元的營收減少，我們公司顯然做出了回應。從成本角度來看，我們在此期間的重點是加速推動能帶來可持續、結構性成本降低的各項計畫，使我們在經濟復甦時能夠運用成長動能。作為領導團隊，我們在策略上審慎為之，重點在於避免落入短期成本決策的陷阱，以免在經濟自疫情反彈之際，損及我們以獲利方式擴大業務的能力。

As you can see on Slide 12, total expense was down 19% in the face of a 20% decline in volume. This includes the impact of approximately $60 million of unique headwinds we faced in the quarter, which included lower real estate gains, severance costs related to a management restructuring, specific COVID-19-related costs, higher depreciation and property tax as well as equipment impairments in the quarter. Excluding these items, costs would have been down 22% year-over-year. I frequently get asked the question, especially over the last 3 months, how much of your cost base is fixed versus variable. And naturally, everyone wants to hear how variable it is when volumes are declining, and how fixed it is when volumes are on the rise. The reality is, very little of our expenses falls out with lower volume. Action and a lot of hard work is required. It's a balance to ensure we variabilize the cost structure while maintaining service levels.

如您在第12頁投影片所見，在運量下滑20%的情況下，總費用下降了19%。其中包含本季我們面臨約6,000萬美元的特殊逆風影響，包括較低的不動產處分收益、與管理層重整相關的資遣費用、特定COVID-19相關成本、較高的折舊與財產稅，以及本季的設備減損。若排除這些項目，成本年減幅將達22%。我經常被問到一個問題，尤其在過去3個月：你們的成本基礎中有多少是固定成本、多少是變動成本。而且很自然地，當運量下滑時，大家想聽到它有多變動；當運量回升時，大家又想聽到它有多固定。現實是，在運量降低時，我們的費用很少會自動下降。需要採取行動並投入大量努力。我們必須在使成本結構更具變動性與維持服務水準之間取得平衡。

In the second quarter, we successfully identified creative solutions to help drive efficiency on a long-term basis. Some of these efforts will show up near term, while others will benefit us in the quarters ahead. As volumes improve off the bottom, I am confident you will see very strong operating leverage, driven in part by a lot of the hard work and effort the team has put in over the last several months.

在第二季，我們成功找出具創意的解決方案，以長期推動效率提升。其中一些措施會在短期內反映出來，另一些則會在未來幾季帶來效益。隨著運量自谷底回升，我有信心您將看到非常強勁的營運槓桿，部分來自團隊在過去幾個月投入的大量辛勤工作與努力。

Walking down the expense line items. Labor and fringe was 22%, lower reflecting the benefit of reduced crew starts, lower operating support costs and reduced labor at our terminals as well as dramatically lower overtime spending. Crew starts were down 24%, exceeding volume declines in the quarter and saving over $70 million in total T&E labor expense. Additionally, the active locomotive count was down 25% year-over-year in the quarter. The smaller fleet, combined with fewer cars online and freight car repair efficiencies, helped drive a 20% reduction in the mechanical workforce, while at the same time reducing mechanical overtime expense by 56%.

接著逐項說明費用科目。人力與附加福利費用下降22%，反映出減少開班（crew starts）、較低的營運支援成本、我們各終端站的人力縮減，以及加班支出大幅降低所帶來的效益。開班數下降24%，降幅超過本季運量下滑，合計節省超過7,000萬美元的T&E（運輸與引擎）人力費用。此外，本季在役機車數量年減25%。較小的車隊規模，加上線上車輛減少與貨車維修效率提升，推動機務人力減少20%，同時使機務加班費用降低56%。

We continue to remain extremely focused on overtime. Through workforce efficiency and management execution, we reduced overtime across all operating departments by 50% versus the prior year, driving $20 million of overtime savings in the second quarter alone. We also achieved significant, largely sustainable reductions in our engineering contract labor expense in our intermodal terminal workforce. In addition to these efficiency improvements, we had $39 million of lower incentive compensation expense in the quarter, primarily reflecting lower projected payouts on existing plans. Finally, the quarter included $10 million in severance costs resulting from a management restructuring to align our resources and improve efficiency. From these actions, we expect $25 million in ongoing annualized savings.

我們仍然極度聚焦於加班控制。透過人力效率提升與管理執行力，我們將所有營運部門的加班較去年同期降低50%，僅第二季就帶來2,000萬美元的加班節省。我們也在聯運（intermodal）終端站人力方面，達成顯著且大多可持續的工程合約用工費用下降。除這些效率改善外，本季激勵性薪酬費用也減少3,900萬美元，主要反映既有計畫的預估發放金額下調。最後，本季包含1,000萬美元的資遣費用，源自管理層重整，以使資源配置更一致並提升效率。透過這些行動，我們預期可帶來每年約2,500萬美元的持續性年化節省。

As I've described before, MS&O expense tends to be less volume-variable than labor. But we still reduced this line item by 9% in the second quarter, or 14% when you adjust for the impact of $26 million in lower real estate and line sale gains versus last year. Continued improvement to the train plan, combined with increased network fluidity, enabled a 37% reduction in crew travel and repositioning expenses versus the prior year.

如我先前所述，MS&O費用通常不像人力費用那樣隨運量變動。但我們仍在第二季將此項目降低9%；若調整去年同期不動產與線路出售收益較今年多2,600萬美元的影響，則降幅為14%。列車計畫的持續改善，加上網路流動性提升，使得與去年同期相比，乘務差旅與調度（repositioning）費用降低37%。

On the mechanical side, the active locomotive count was down 25% year-over-year, and we closed the quarter with over 1,000 locomotives in storage. In addition, fewer cars online and freight car repair efficiencies helped drive a 20% reduction in car material expense in the quarter. The safety of our employees remains CSX's #1 priority. In the quarter, we spent approximately $10 million in COVID-related supplies to ensure our employees were safe and following CDC guidelines while they kept the railroad running. We leveraged our purchasing power to procure large quantities of safety supplies to stage around the network. Going forward, we expect a run rate of $1 million to $2 million per quarter for the balance of the pandemic.

在機務方面，在役機車數量年減25%，且我們在季末有超過1,000輛機車處於封存狀態。此外，線上車輛減少與貨車維修效率提升，推動本季車輛材料費用下降20%。員工安全仍是CSX的第一優先要務。本季我們在COVID相關物資上支出約1,000萬美元，以確保員工安全並遵循CDC指引，同時維持鐵路營運。我們運用採購規模優勢，採購大量安全物資並在全網路各處預先部署。展望未來，在疫情剩餘期間，我們預期每季的支出水準約為100萬至200萬美元。

I already mentioned the decline in the real estate gains in the second quarter. For modeling purposes, our current assumption is for minimal sales activity across the balance of the year. We continued to see sales opportunities longer term while the team is also focused on accelerating strategies that will increase recurring income streams that are tied to our real estate portfolio. Fuel expense improved $143 million or 61% year-over-year, driven by a 50% decrease in the per gallon price, lower volume and significant efficiency improvements. I probably sound like a broken record, but we achieved another all-time record of quarterly fuel efficiency at 0.96 gallons per GTM.

我先前已提到第二季不動產收益的下滑。就建模而言，我們目前假設今年剩餘期間的出售活動將維持在最低水準。我們持續看到較長期的出售機會，同時團隊也聚焦於加速策略，以提高與我們不動產投資組合相關的經常性收入來源。燃料費用年減1.43億美元或61%，主要受每加侖價格下降50%、運量降低以及顯著的效率改善所帶動。我可能聽起來像老生常談，但我們再次創下季度燃油效率的歷史新高，達到每GTM 0.96加侖。

Looking at other expenses. Depreciation increased $7 million or 2% in the quarter, mainly driven by our 2019 equipment study. Equipment rents expense decreased $14 million or 15%. Lower volumes as well as improved cycle times in our intermodal market was the most significant driver.

再看其他費用。本季折舊增加700萬美元或2%，主要由我們2019年的設備研究所驅動。設備租賃費用減少1,400萬美元或15%。運量降低以及我們聯運市場的週轉時間改善，是最主要的驅動因素。

Turning below the line. Interest expense increased primarily due to higher debt balances, partially offset by a lower weighted average coupon. Income tax expense decreased $123 million or 45%, primarily resulting from lower pretax income. Absent unique items, we continue to expect an effective tax rate of approximately 24.5% for future quarters.

接著看損益表線下項目。利息費用增加，主要因債務餘額較高，部分被較低的加權平均票面利率所抵銷。所得稅費用減少1.23億美元或45%，主要源自稅前盈餘較低。若不計特殊項目，我們仍預期未來幾季的有效稅率約為24.5%。

Closing out the P&L, CSX's operating income declined 37% year-over-year with a 63.3% operating ratio.

總結損益表，CSX的營業利益年減37%，營業比率為63.3%。

Turning to the cash side of the equation on Slide 13. On a year-to-date basis, capital investment is roughly flat. We continue to invest in our core track, bridge and signal infrastructure, prioritizing investments that provide safe and reliable train operations. We are not cutting capital, especially investments in the safety of our core infrastructure and projects that produce attractive returns.

接著看第13頁投影片的現金面。以年初至今來看，資本投資大致持平。我們持續投資於核心軌道、橋梁與號誌基礎設施，優先投入能提供安全且可靠列車營運的項目。我們不會削減資本支出，尤其是不會削減核心基礎設施安全相關投資，以及能帶來具吸引力報酬的專案。

Through the second quarter, free cash flow before dividends was $1.4 billion, down 15% versus prior year. Free cash flow has continued to be a key focus for this team. Even in this challenging environment, we saw free cash flow conversion on net income exceed 100%. Our results this quarter really highlight the significant improvement in our operating model. Our ability to generate positive through-cycle cash flow allows us to continue to invest in our network and pursue incremental investments that will further strengthen our business. Importantly, our cash and short-term investment balance at the end of the second quarter was $2.6 billion. This industry-leading cash and liquidity position provides us ample flexibility going forward, and we remain committed to distributing excess cash to shareholders.

截至第二季，自由現金流（扣除股利前）為14億美元，較去年同期下降15%。自由現金流一直是本團隊的關鍵重點。即使在這樣具挑戰的環境下，我們自由現金流對淨利的轉換率仍超過100%。本季的結果確實凸顯我們營運模式的顯著改善。我們在景氣循環各階段都能產生正向現金流的能力，使我們得以持續投資於網路，並推動額外投資以進一步強化業務。重要的是，第二季末我們的現金與短期投資餘額為26億美元。這個業界領先的現金與流動性部位，為我們未來提供充足的彈性；我們也仍致力於將多餘現金回饋給股東。

With that, let me turn it back to Jim for his closing remarks.

接下來，我把時間交還給Jim，請他做結語。

Thanks a lot, Kevin. Concluding on Slide 15. Boy, are we happy to see the volumes recover from the May trough as the economy strengthens. However, while these trends are encouraging, the ultimate path of the recovery remains too wide to accurately predict at this point. As for CapEx, we are still expecting the full year to be at the low end of our initial $1.6 billion to $1.7 billion range. We will never reduce or defer any spend that impacts safety, and we will continue investing to maintain the integrity of our network. We are, however, evaluating our capital spending programs to maximize efficiency and prioritize high-return projects. We're applying the same disciplined approach to our capital budget that we do to our operating expenses, and making sure every dollar is spent productively while actively seeking out and eliminating wasteful spending. It's this mentality that has generated CSX's industry-leading cash flow profile and strong liquidity position. Not only does our transformed cash flow profile provide additional operating flexibility during these periods of uncertainty, but it allows us to continue investing for the health and growth of the business throughout the cycle. CSX is a better company today due to the actions taken over the past few months. No matter what path the recovery takes from here, we will remain laser-focused on serving our customers and making this company stronger than it has ever been. I'm proud to work with such an exceptional team of railroaders, and I'm more confident than ever that the best is yet to come for CSX.

非常感謝你，Kevin。在第15頁做個總結。隨著經濟走強，我們很高興看到運量自5月低點回升。然而，儘管這些趨勢令人鼓舞，復甦的最終走勢目前仍有太大的不確定性，難以準確預測。至於資本支出（CapEx），我們仍預期全年將落在最初16億至17億美元區間的低端。我們絕不會削減或延後任何影響安全的支出，並將持續投資以維持我們網路的完整性。不過，我們正在評估資本支出計畫，以最大化效率並優先推動高報酬專案。我們對資本預算採取與營運費用相同的紀律化方法，確保每一美元都能有效產出，同時積極尋找並消除浪費性支出。正是這種心態，造就了CSX在業界領先的現金流特徵與強勁的流動性部位。我們轉型後的現金流特徵不僅在這些不確定時期提供更多營運彈性，也讓我們能在景氣循環中持續投資，以維持業務健康並推動成長。由於過去幾個月採取的行動，CSX今天已是一家更好的公司。無論復甦接下來走向如何，我們都將高度聚焦於服務客戶，並讓這家公司比以往任何時候都更強大。我很自豪能與如此卓越的鐵路團隊共事，也比以往任何時候都更有信心：CSX最好的時刻尚未到來。

Thank you, and I'll kick it back to Bill.

謝謝，我把時間交回給Bill。

Thank you, Jim. In the interest of time, I would ask everyone to please limit themselves to only 1 question. With that, we will now open the line for questions.

謝謝你，Jim。為了節省時間，我想請各位每人只提1個問題。接下來，我們將開放提問。

(Operator Instructions) Our first question comes from Tom Wadewitz from UBS.

(接線員指示) 我們的第一個問題來自UBS的Tom Wadewitz。

Yes. Wanted to see if you could offer some more thoughts on the structural changes to cost and how we might think of those. I guess the simple framework I think of is just kind of the schedule, and what would your train schedule look like if the volumes came back to pre-COVID levels. I don't know if that's the right framework or if there are other things. But just wanted to see if you could give more of a framework of the structural cost takeout and how that looks when volume comes back.

是的。想請教你能否再多分享一些對成本結構性變化的看法，以及我們該如何思考這些變化。我想到的一個簡單框架大概是時刻表：如果運量回到COVID之前的水準，你們的列車時刻表會長什麼樣子。我不確定這是不是正確的框架，或是否還有其他面向。但想請你提供一個更完整的框架，說明結構性成本削減，以及當運量回升時會呈現什麼樣貌。

Sure, Tom. I think, probably, Jamie is probably the best that can give us a little bit of the color behind everything he's been working on so hard for the last 3 months.

當然，Tom。我想Jamie可能最適合來補充一些細節，說明他過去3個月非常努力推動的各項工作。

And no, absolutely. Thank you for the question, Tom. As Jim mentioned and both Kevin, we've seen a bit of a rebound, obviously, on our volume levels here over the past 6 weeks. We have -- being up 25% from our low point during the COVID period here. And if you take a good look at the numbers on Slide 9, you'll see that this business has come back with us only using 13% more locomotives and 14% more road starts. So we have -- we use this time during COVID almost like our practice hour to be prepared on how to run trains differently and how to readjust our network. We're using more distributed power. As Jim had mentioned in his opening, we are doing more of a train mix. Our auto network, which practically disappeared throughout the COVID period, has come back strong, and we are moving it in a different way than we ever have. We're mixing the auto network with our manifest and, in some areas, with our intermodal network. And reducing those train starts, road starts that we see out there is going to be a good lasting effect as we move forward.

是的，完全同意。謝謝你的問題，Tom。如Jim以及Kevin所提到的，過去6週我們的運量水準顯然出現一些反彈。相較於COVID期間的低點，我們已回升了25%。如果你仔細看第9頁的數據，你會看到在業務回升的同時，我們只多使用了13%的機車與14%的路線開車（road starts）。因此，我們把COVID期間幾乎當作一段「練兵時間」，用來準備如何以不同方式運行列車，以及如何重新調整我們的網路。我們採用了更多分散式動力（distributed power）。如Jim在開場所提到的，我們也做了更多列車組合（train mix）。我們的汽車運輸網路在COVID期間幾乎消失，但現在強勢回來了，而且我們正以不同於以往的方式來運行。我們把汽車運輸與我們的零擔（manifest）列車混編，在某些地區也與我們的聯運（intermodal）網路混編。而降低我們看到的列車開行（train starts）與路線開車（road starts），在未來推進時將帶來良好且持久的效果。

Are we going to have to continue to add some assets? Absolutely. If and when volume continues to improve and go above the COVID volume -- pre-COVID volume, definitely we'll be putting some assets back in and bring some more people off furlough. But I've always said that every asset we bring back in, will earn its keep. And we're running the network very well right now. We're starting to get our mojo back, I guess, with respect to our mainline speeds, where we hit 21-mile an hour here today, which is a number that we're happy with, and we want to get that fluidity moving. And also in our yards, we've shut down a number of mechanical facilities that won't come back. We have made sure that we've reduced the proper shifts in some of our diesel shops as well as moved work, some of our queue-type work, which is some of our heavier semi-yearly work, to certain facilities, it's working really well. We'll continue to do that, which will continue to help us drive those savings.

我們是否還需要持續增加一些資產？當然需要。如果、且當運量持續改善並超過COVID前的運量水準，我們肯定會把部分資產重新投入，並讓更多員工結束停薪留職（furlough）回到崗位。但我一直說，我們每一項重新投入的資產，都必須能夠「自負盈虧」、發揮價值。而我們目前網路運行得非常好。就主線速度而言，我想我們正在找回節奏；今天我們達到每小時21英里，這個數字我們很滿意，也希望讓整體流動性持續提升。另外在車場方面，我們已關閉多個機械維修設施，且不會再恢復。我們也確保在部分柴油機修車間適當減少班次，並將部分排隊型工作（queue-type work），也就是一些較重、每半年一次的工作，集中移轉到特定設施，運作得非常好。我們會持續這麼做，進一步推動這些節省。

And then particularly, on some of the areas of engineering. So if we take a look at not just this being the costs on the transportation side, on the engineering side, we have been very successful in making sure that we get good work blocks out there. Our engineering team, even though we're putting in still the same amount of ties and rail as we did last year, we're doing it with $17,000 less per mile. We're doing it over $3 less per tie installed. So these are items that we're going to continue to move forward, even as the volume continues to get back to pre-COVID levels. And we feel quite confident that we're going to be able to absorb some of the costs or some of the volumes as it continues to come back.

接著特別談到工程（engineering）的一些領域。如果我們不只看運輸端的成本，在工程端，我們在確保取得良好施工封鎖時段（work blocks）方面也非常成功。我們的工程團隊，即使仍維持與去年相同的枕木與鋼軌鋪設量，但每英里的成本降低了17,000美元。每根枕木的安裝成本也降低了超過3美元。因此，即便運量持續回到COVID前水準，這些項目我們仍會繼續推進。我們相當有信心，隨著運量持續回升，我們將能吸收部分成本或部分新增運量所帶來的需求。

Your next question comes from Ken Hoexter from Bank of America Merrill Lynch.

下一個問題來自美國銀行美林（Bank of America Merrill Lynch）的Ken Hoexter。

Jim, can you maybe talk about, given the speed of the volume rebound that you're seeing and carloads now down only mid-single digits, thoughts on employees, maybe a little bit more details on what you did with the restructuring there? Did you eliminate layers? Were there shift in operations and maybe the pace of return of some of those employees? And then, I guess, in a bigger picture, your, just thoughts on returning to possible operating ratio improvement as we get into the back half of the year.

Jim，鑑於你們看到的運量反彈速度，以及目前車載量（carloads）僅剩中個位數下滑，你能否談談員工方面的情況，並更詳細說明你們在重整（restructuring）上做了哪些事？你們是否刪減了管理層級？營運上是否有調整，以及部分員工回任的節奏可能如何？另外從更宏觀的角度，你對於下半年可能回到營運比率（operating ratio）改善的看法是什麼？

That's a nice 3 question in 1 question. I like your style. Yes. Again, in terms of the structural changes that we made during the last couple of months here, I tasked the team with taking a look at everything that we do, and seeing if there is a better way to do it. Wasn't just an exercise in mandatory headcount reductions, but it was an opportunity to see if during this more difficult period of time, we could assess almost everything we did in the organization and figure out how we could eliminate layers and get things done more effectively. And as a result of that, we basically aligned duties and responsibilities in the areas where they probably should have been a long time ago, and the organization is stronger and better-performing as a result of that. Jamie can offer -- jump in a little bit here more on calling back people, more people in the field as we more forward.

這是一個問題裡面有3個問題。我喜歡你的風格。是的。再說回我們過去幾個月所做的結構性變革，我要求團隊檢視我們所做的每一件事，看看是否有更好的做法。這不只是一次強制裁減人力的練習，而是一次機會：在這段更艱難的時期，我們幾乎重新檢視組織內做的所有事情，並找出如何刪減層級、讓事情更有效率地完成。因此，我們基本上在一些早就應該調整的領域，重新對齊了職責與責任分工，而組織也因此更強、更能產出、更有效率。至於隨著我們往前推進、在現場召回人員與更多員工回任的部分，Jamie可以再補充說明。

Our #1 priority here is to make sure we deliver an excellent product to our customers. It would be -- when we saw that -- the dramatic yo-yo effect of our volumes over that 6-week period there, where everything just dropped off and then bounced back, that's not an easy way to run a railroad. And we've got all kinds of work rules, et cetera, associated with how long it takes people to come back to work. And so we're just now, as Jamie said, getting the railroad back up running with great fluidity and velocity. And now we will focus on getting back to what this team is now known for, being exceptional operators.

我們在這裡的首要任務是確保為客戶交付卓越的產品。當我們看到那樣的情況——在那 6 週期間，我們的運量出現劇烈的「溜溜球效應」，一切突然下滑又反彈——這不是一種容易經營鐵路的方式。而且我們還有各式各樣的工作規則等等，涉及人員回到工作崗位需要多長時間。因此，正如 Jamie 所說，我們現在才剛把鐵路營運恢復到具有很高的流暢度與速度。接下來我們將專注於回到這個團隊如今所為人熟知的樣子——成為卓越的營運者。

And as we move forward in terms of the third part of your 1-part question, there's -- the operating ratio is -- it's an equation. And we need to get the revenue stream back to where we expected it to be. And we think based upon sequential increase week after week after week in the carload volumes, which you see just like we do, things are beginning -- things are grinding their way forward. And we hope that, that continues. And if that continues, then we'll get back to where we think we should be, which is showing everybody that we can run a railroad as efficiently and as lean as anyone else in North America.

而在我們往前推進、就你那個「一題三問」的第三部分而言，營運比率——它是一個等式。我們需要讓營收回到我們原先預期的水準。我們認為，從車皮裝載量一週接一週、連續增加的趨勢來看——你看到的和我們一樣——情況開始……正在一步步往前推進。我們希望這樣的趨勢能持續。如果能持續，那麼我們就會回到我們認為應該達到的位置，也就是向大家證明：我們能以和北美任何其他鐵路公司一樣高效、精實的方式來營運鐵路。

Jamie, do you want to just -- anything else I missed?

Jamie，你要不要補充一下——我還漏了什麼嗎？

Yes. Just -- look, when it comes to the headcount and make sure we have enough people, the most important part of that recipe really is working with Mark and his team, ensuring that any customers who we'd get a head up -- heads up on, who are starting to pick up on some of the traffic flow, that we've got people where we need them, and we start positioning people ahead of time as much as we can. We've brought in hundreds of T&E employees back. They're out there working for us on the front line, moving the freight and making sure that our customers get the service that they expect out of CSX. But of course, it's not easy. As Jim mentioned, in 6 weeks to go from your all-time low during this COVID period to a 25% volume increase and be able to pick it up, is everything we've said that we were going to be able to do at CSX, and we've been able to accomplish that. So as more business at some point comes along, again, we work really, really close with our marketing team. And we've got a good number of employees still on furlough that we want to find work for them. And we'll continue to bring them back as we see the business level start to come.

是的。簡單說——你看，談到人力編制並確保我們有足夠的人手，這個配方中最重要的一部分，其實是和 Mark 及其團隊合作，確保對於任何我們能提前收到通知、開始出現一些貨物流量回升的客戶，我們能把人員配置到需要的地方，並盡可能提前進行人員部署。我們已經召回了數百名 T&E 員工。他們在第一線為我們工作，運送貨物，並確保客戶獲得他們對 CSX 所期待的服務。但當然，這並不容易。正如 Jim 提到的，在 6 週內從這段 COVID 期間的歷史最低點，提升到運量增加 25%，而且能夠承接起來，這正是我們一直說 CSX 能做到的事，而我們也確實做到了。因此，當未來某個時點有更多業務回來時，我們會再次與行銷團隊非常、非常緊密地合作。我們仍有相當數量的員工處於停薪留職（furlough）狀態，我們希望能為他們找到工作。隨著我們看到業務水準開始回升，我們也會持續把他們召回。

Your next question comes from Brandon Oglenski from Barclays.

下一個問題來自 Barclays 的 Brandon Oglenski。

I guess, Jim or Mark, can you give us some color on where you see the recovery coming right now? I think from our outside perspective, it seems like a lot of consumer-oriented freight markets are maybe rebounding a bit faster. Could you talk about that and maybe the dichotomy of what we're seeing on more core industrial trends? Or maybe that's not the right way to describe it right now.

我想請教 Jim 或 Mark，你們能否多談一些你們目前看到復甦主要來自哪裡？從我們外部的角度看，似乎許多偏向消費者的貨運市場反彈得更快一些。你們能談談這點，以及我們在較核心的工業趨勢上看到的分歧嗎？或者也許現在用「分歧」來形容並不恰當。

Sure. So it's Mark. So thanks for the question, Brandon. So interestingly, over the course of the last few months as our employees have been working from home and not spending time in airports and hotels and out there meeting with their accounts, we made it a key priority for our sales and marketing teams to remain close to our customers in order to sort of understand what they're seeing in the marketplace and we could continue to service their needs. And I think the general consensus throughout the quarter from customers was -- has been that the outlook remains unclear. Having said that, I think, as Jim said earlier, we and our customers are -- certainly have been pleased and encouraged to see the volumes recover off the trough from May. And I think -- but I still think it's too early to say that we have an accurate view on the trajectory of the volumes or the shape of the recovery in the second half.

當然。我是 Mark。謝謝你的問題，Brandon。有趣的是，在過去幾個月裡，當我們的員工在家工作、沒有花時間在機場和飯店、也無法外出拜訪客戶時，我們把一個關鍵優先事項放在銷售與行銷團隊身上：要與客戶保持緊密聯繫，以便了解他們在市場上看到的情況，並讓我們能持續滿足他們的需求。我認為，本季期間客戶的普遍共識一直是——前景仍不明朗。話雖如此，我想正如 Jim 先前所說，我們和客戶——當然——都很高興且受到鼓舞，看到運量自 5 月的谷底回升。但我仍認為，現在要說我們已能準確掌握運量的走勢或下半年復甦的形狀，還為時過早。

Now getting to your question, I think in merchandise, obviously encouraged to see auto plants reopen, which has helped other markets like steel and plastics and auto parts, for example. Interestingly, even our ag and food business during the quarter, which traditionally is a pretty stable business in a recession, was impacted given the declines in ethanol, as nobody was driving into the office every day. Our beverage business was impacted given some of the shutdowns in Mexico, and those supply chains were impacted. And our feed grain shipments were low, given also some food processors were running low capacity levels. All these markets now are starting to see some good volumes across the merchandise portfolio, and we'll obviously continue to watch them very, very closely.

回到你的問題，我認為在一般貨運（merchandise）方面，看到汽車工廠重新開工當然令人振奮，這也帶動了例如鋼鐵、塑膠以及汽車零組件等其他市場。有意思的是，即便是我們的農業與食品業務——在衰退中傳統上相當穩定——本季也受到影響，因為乙醇需求下滑，大家不再每天開車去辦公室。我們的飲料業務也受到影響，因為墨西哥部分停工，相關供應鏈受到衝擊。而我們的飼料穀物出貨量偏低，原因也包括一些食品加工商以較低產能運作。目前這些市場都開始在一般貨運組合中看到不錯的運量，我們也會非常、非常密切地持續觀察。

I'll just also touch a little bit on intermodal. In April and May, they were obviously tough months for us, both for domestic and international, but we started to see volumes rebound nicely in June, especially on the domestic side as the economy began to reopen and we saw inventories being replenished at some of the retailers. And we also saw strong volume surges for our e-commerce business, as individuals stayed home but shopped online. So that was encouraging. We think that strength will continue, and we're encouraged with the international business. As previously announced, some of the blank sailings have been reversed, but there are customers, direct quote from them, they remain cautiously optimistic for the back half of the year. And just rounding out the portfolio with coal, the outlook remains challenged, both for domestic utility and for exports.

我也稍微談一下聯運（intermodal）。在 4 月和 5 月，對我們而言顯然是艱難的月份，無論是國內或國際業務；但我們在 6 月開始看到運量明顯回升，尤其是國內端，因為經濟開始重啟，我們看到部分零售商在補充庫存。我們也看到電商業務的運量強勁激增，因為民眾待在家中但改為線上購物。因此這令人鼓舞。我們認為這股強勢將會延續，且我們對國際業務也感到振奮。如先前所宣布，一些取消航班（blank sailings）已被恢復，但有客戶——直接引用他們的話——對今年下半年仍保持審慎樂觀。最後補充煤炭業務：無論是國內公用事業用煤或出口，前景仍然充滿挑戰。

So as Jim said earlier, Brandon, virtually every one of our markets and customers were impacted by the pandemic. There remains a lot of uncertainty around the pace of the recovery and the continuing impact of COVID-19 on states and businesses. Couple that with what's going on with the upcoming election in November and other geopolitical issues, that all shapes our view that while we're encouraged with the increases that we're seeing today, we remain cautiously optimistic about the back half.

因此，正如 Jim 先前所說，Brandon，我們幾乎每一個市場與客戶都受到疫情影響。復甦速度以及 COVID-19 對各州與企業的持續影響，仍存在很大的不確定性。再加上 11 月即將到來的選舉以及其他地緣政治議題，這些都形塑了我們的看法：雖然我們對目前看到的增長感到鼓舞，但對下半年仍維持審慎樂觀。

Your next question comes from Allison Landry from Crédit Suisse.

下一個問題來自 Crédit Suisse 的 Allison Landry。

So just given the wild swing in volumes, are you guys seeing any challenges or choke points as the traffic comes back, whether in your own network or with any of these interchange partners? It just seems like the service metrics have deteriorated across the industry recently. So just curious what you're seeing from a fluidity standpoint and if you think some of the declines we've seen recently are just temporary blips.

鑑於運量如此劇烈波動，當貨流回來時，你們是否在自家路網或與任何交接（interchange）夥伴之間看到任何挑戰或瓶頸？最近整個產業的服務指標似乎都有所惡化。所以想請教你們從流暢度的角度看到什麼，以及你們是否認為我們最近看到的一些下滑只是暫時性的波動。

Allison, yes, it's Jim. I think I can't speak for the other industries, but again our experience, as I somewhat alluded to in my earlier answer, when we had that kind of really quick drop and had to respond appropriately by reducing our workforce, normally, in a more traditional economic downturn scenario, don't expect your employees to have to come back to work or don't expect them to come back to work so quickly. And in the normal scenario, you're always worried about "Well, geez, these guys are off for 6, 8, 9, 12 months, are they going to be available for me to come back to work when the economy rebounds and I need to start recalling employees."

Allison，是的，我是 Jim。我無法代表其他產業發言，但就我們的經驗而言——我在先前的回答中也稍微提到——當我們遇到那種非常快速的下滑，並必須透過縮減人力來做出適當回應時，通常在較傳統的經濟下行情境下，你不會預期員工需要回到工作崗位，或不會預期他們會這麼快回來。而在一般情境下，你總是會擔心：「嗯，天啊，這些人離開了 6、8、9、12 個月，當經濟反彈、我需要開始召回員工時，他們還會願意回來上班嗎？」

So that was our principal concern, working our way through this kind of maze and difficult period of time as to what is really going on here. And so that was our concern was, "Where are these guys going to be 12 months from now when I need to get them back, to come back to work?" Well, as we've now seen, we had this short period of time. And in that circumstance, meaning we called people back, they have quite a lengthy time to actually return to work when we call them and say, "Okay. Business is back. Surprise. Surprise. Can you come back to work tomorrow?" And the guy goes, "Well, you know, I got a couple of weeks here before I've really got to mark up and return." And then there's a process through the seniority system where displacements occur. So it's just a work-in-progress for us to ramp up and get the trains fully staffed so we can get our velocity back to where it needs to be, our on-time originations and arrivals where they need to be. And that's taken us a little while. And yes, it shows in the metrics, but we think that we are in a pretty good place right now.

所以那是我們的主要關切：在這種迷宮般的情況與艱難時期中摸索前進，搞清楚這裡究竟發生了什麼事。因此我們的擔憂是：「當我需要把他們叫回來、回來上班時，12 個月後這些人會在哪裡？」嗯，如今我們已經看到，我們只有一段短暫的時間。而在那種情況下，也就是我們把人叫回來時，當我們打電話跟他們說「好，業務回來了。驚喜。驚喜。你明天能回來上班嗎？」對方會說：「嗯，你知道，我這裡還有幾週時間，才真的得報到並回去。」然後在資歷制度下會有一個流程，會發生人員調整（displacements）。所以對我們而言，這只是正在進行中的工作：逐步提升、讓列車人力配置到位，才能把運行速度拉回到應有水準，讓準點始發與到達回到應有水準。而這花了我們一點時間。是的，這會反映在指標上，但我們認為目前我們處在相當不錯的位置。

And again, I can't speak for the other railroads. But I would imagine they have the same, practically identical labor agreements that we do. They kind of probably struggled with -- through this as well. And I just think now that everything is kind of smoothing out, we didn't see any kind of major congestion points throughout North America, like we sometimes do. So I think everybody is working very, very closely and effectively. There is a certain like-mindedness now in the operating structure of the North American railroads, where everybody kind of thinks the same way and acts the same way. And as we've said in the past, the scheduled railroading model, as it is implicated (sic) [implemented] across North America, is a good thing for the industry, because we all know how to move trains now more effectively and efficiently than we could in the past.

再說一次，我無法代表其他鐵路公司發言。但我想他們的勞動協議應該和我們幾乎一模一樣。他們大概也在這段期間同樣掙扎過。而我認為現在一切都在逐漸順暢，我們並沒有在北美各地看到任何重大的壅塞點，像我們有時候會遇到的那種。所以我認為大家都在非常、非常緊密且有效地合作。目前北美鐵路的營運架構有一種同調性，大家的想法差不多、做法也差不多。而且如同我們過去所說，排程式鐵路（scheduled railroading）模式在北美各地被引入（sic）[實施]，對產業是好事，因為我們現在都知道如何比過去更有效率、更有效能地運行列車。

Okay. I mean, basically, it sounds like the takeaway is that you think this is mostly transitory. Is that fair to say?

好的。我的意思是，基本上聽起來你的結論是，你認為這大多是暫時性的。這樣說公平嗎？

Yes. I think we're good. I think, like I said, I think we're in good shape right now.

是的。我覺得我們沒問題。我想，如我所說，我認為我們現在狀況良好。

Your next question comes from Amit Mehrotra from Deutsche Bank.

下一個問題來自德意志銀行（Deutsche Bank）的 Amit Mehrotra。

I had a very quick follow-up first. Kevin, you've been helpful in the past, more recently, in helping us think about OR in terms of the 6 handle, et cetera. Wonder if you could do the same for the third quarter. Is another 6 handle kind of in the cards because of the volume declines? Or can we get back to the 5 handles, given the revenue growth is much more -- decline is much more benign?

我先很快追問一下。Kevin，你過去、尤其最近，曾很有幫助地協助我們用「6 字頭」等方式來思考 OR（營運比率）。想請你也用同樣方式談談第三季。由於運量下滑，是否可能又會是「6 字頭」？或者，考量營收成長（或下滑）要溫和得多，我們能回到「5 字頭」嗎？

And then, Jim, you also talked about -- I was hoping you could talk about the underlying growth initiatives that you guys have been working on pre-COVID, how they're tracking in terms of truck back to rail conversions. You obviously have a little bit more of a track record in terms of good trip plan compliance, and truckload rates are ticking up. So I was hoping you can give an update there as well.

然後，Jim，你也提到——我希望你能談談你們在 COVID 之前一直在推動的底層成長計畫，目前進展如何，特別是卡車轉鐵路（truck back to rail）的轉換。你們在良好的行程計畫遵循（trip plan compliance）方面顯然有更多的實績，而整車（truckload）運價也在走高。所以也希望你能在這方面提供更新。

Yes. Amit, this is Kevin. I'm not going to give out any handles today. I thought it was appropriate last quarter, but given where we are today and we're not guiding, I'll probably defer on that one. I will say, as the volume comes off the bottom, you're going to see a lot of operating leverage in the model, I'm very, very confident, across all the expense line items. If you look at it on an expense per GTM, say, we're going to see improvement across every area there. And look, as the volumes come, if they come back stronger than what we anticipate, that will continue to improve the OR. So we see -- we just did 58.7 in the first quarter. If anything, our cost structure, we've improved it this last quarter. So we pretty -- feel very confident once the volumes return, that we'll be back to where we were.

是的。Amit，我是 Kevin。我今天不會提供任何「字頭」指引。我認為上季那樣做是合適的，但就我們目前的狀況、而且我們不提供指引，我大概就先不談這個。我會說，隨著運量從谷底回升，你會在模型中看到很大的營運槓桿，我非常、非常有信心，會反映在所有費用科目上。如果你用每 GTM 的費用來看，我們會在各個領域都看到改善。而且你看，隨著運量回來——如果回升力道比我們預期更強——那將持續改善 OR。所以我們看到——我們第一季剛做到 58.7。若有什麼不同的話，是我們在上季改善了成本結構。因此我們相當——一旦運量回來，我們非常有信心能回到先前的水準。

Amit, yes. And as -- in reference to your growth initiatives, Kevin just talked about as the volume of the business comes back, and I just talked about the equation here being -- the operating ratio being revenues and expenses, it's only appropriate that we let Mark answer the question of how he plans to grow the business here in the next couple of weeks.

Amit，是的。至於——你提到的成長計畫，Kevin 剛談到隨著業務運量回升；而我剛也談到這裡的等式——營運比率是營收與費用的關係——因此，讓 Mark 來回答他打算在接下來幾週如何推動業務成長，才是合適的。

Yes, Jim, thanks. So Amit, I think the journey continues on all our marketing efforts that we started gee, it's a little less than a year ago now. It seems like a long time, but we haven't been at it that long. But our -- clearly, first priority at CSX was to fix the service product. By and large, mission accomplished there, I think we've got the best service product going into this pandemic in the industry, and we're very pleased with that. And so it allowed us to really focus on growing this company and really looking at all the marketing initiatives that we just haven't done in the past. And the team has been hard at work looking at all those things, peeling back the onion with our customers' books of businesses, looking at opportunities, looking at business that maybe once was on CSX but was lost, that had gone away over the years, business that traditionally never moved by rail and moved by other modes of transportation, reaching out to those customers and explaining to them the value of CSX.

是的，Jim，謝謝。所以 Amit，我認為我們在所有行銷工作上的旅程仍在持續；我們開始這些工作，嗯，現在還不到一年前。感覺像很久，但其實我們投入的時間並不長。但在 CSX，我們的——很明確的第一優先是把服務產品修好。大體而言，我認為任務已完成；我認為在這場疫情來臨前，我們擁有業界最好的服務產品，我們對此非常滿意。因此這讓我們能真正把重心放在公司成長上，並真正檢視所有我們過去沒有做過的行銷計畫。團隊一直努力研究所有這些事情，與客戶的業務帳本層層剖析，尋找機會，尋找可能曾經在 CSX 上運輸但後來流失、這些年逐漸消失的業務；也尋找傳統上從未走鐵路、而是走其他運輸方式的業務，主動接觸那些客戶，向他們說明 CSX 的價值。

I think part of the big benefit too, as we've been going through this pandemic is as we talk to different shippers, we offer a very competitive truck-like solution and we're cheaper than the truck, by and large. So in a time when companies are looking to save money during this pandemic, we become, with our service, a very interesting service option for them. So we continue that journey. We're only 9 months or 10 months into this, and we're very, very pleased with a lot of the progress that has been made across the portfolio, everything from metals and forest products and aggregates and a whole bunch of commodities where we've seen a lot of truck conversions happening. And that, as I said, that journey continues. And the work continues. But so far, our American team has done an outstanding job identifying a lot of those opportunities, and we've got a great sales team that are actually going out and converting them.

我認為另一個很大的好處是，在我們經歷這場疫情期間，當我們與不同的託運人（shippers）交流時，我們提供一個非常具競爭力、類似卡車的解決方案，而且大體而言，我們比卡車更便宜。因此在企業於疫情期間尋求節省成本的時候，我們憑藉服務，成為他們一個非常有吸引力的服務選項。所以我們持續這段旅程。我們才進行了 9 個月或 10 個月，但我們對整個組合中已取得的許多進展感到非常、非常滿意，從金屬、林產品、骨材到一大堆商品，我們看到很多卡車轉換正在發生。而且如我所說，這段旅程仍在持續。工作也仍在繼續。但到目前為止，我們的美國團隊在辨識許多這類機會方面做得非常出色，而我們也有很棒的銷售團隊，實際走出去把它們轉換過來。

Your next question comes from Scott Group from Wolfe Research.

下一個問題來自 Wolfe Research 的 Scott Group。

So I don't know if this is for Kevin or Mark on the yield. So rev per car was down 7%, I think yields ex fuel were down about 5%. Can you give us a sense of the price versus mix component in the quarter? And then I know mix is a tough one to forecast, but directionally, does mix seem more or less negative in the third quarter relative to second? And any thoughts, Mark, on the coal RPU with the benchmark rates, if that goes down any further? Any sort of help on the yield side?

所以我不確定這題是問 Kevin 還是 Mark，關於收益率（yield）。每車營收（rev per car）下滑 7%，我想扣除燃油後的收益率大約下滑 5%。你們能否說明一下本季價格與組合（mix）因素各自的影響？另外我知道組合很難預測，但就方向性而言，第三季的組合相較第二季看起來是更負面還是較不負面？還有 Mark，關於煤炭每單位營收（RPU）在基準運價（benchmark rates）之下，如果再往下走，你有什麼看法？在收益率端有沒有任何可能的支撐？

A lot questions-in-one here today. Just kidding, Scott, I'd be happy to answer those. So listen, let me attack the pricing side, it comes to the heart of your question, I think. And obviously, this was a tough economic environment this past quarter. But our pricing philosophy has not changed in terms of continuing to price to the value of the service product, which we think is really good. I was extremely happy in the quarter despite the tough environment, that we were able to secure several significant longer-term deals with great pricing in the quarter. So the team is doing -- despite the environment, the team is continuing to go out and get the price increases that we're looking for, and I'm very, very pleased with the work they're doing. On the merchandise side we saw positive pricing year-on-year, inflationary-plus pricing, really good pricing there. Intermodal, again, increases year-on-year. And then coal, while we can talk about that at another time, but clearly, a bit of a challenge, especially [long on] the export side and on the domestic side as well.

今天這是一題多問。開玩笑的，Scott，我很樂意回答。我先從定價面切入，我想這是你問題的核心。很明顯，上一季的經濟環境相當艱難。但我們的定價理念沒有改變：持續依據服務產品的價值來定價，而我們認為我們的服務產品非常好。儘管環境艱難，我對本季仍非常滿意，因為我們在本季以很好的價格拿下了幾筆重要的長期合約。所以團隊在這樣的環境下仍持續爭取我們想要的漲價，我對他們的表現非常、非常滿意。在商品（merchandise）方面，我們看到年對年正向定價，屬於高於通膨的定價，表現很好。聯運（intermodal）同樣年對年上調。至於煤炭，我們可以改天再細談，但顯然有些挑戰，尤其是在出口端，以及國內端也是如此。

With respect to RPU, Scott, I think the big story on the RPU in the quarter was fuel surcharge, just given what's happened with fuel in the quarter. If you look at our intermodal, RPU was down 8%. If you exclude the impact of fuel surcharge, that was about a 5- to 6-point -- 5 to 6 percentage impact there, so we'd be down 2%, 3% on intermodal for RPU. And merchandise, excluding the impact of fuel surcharge, merchandise RPUs would actually be up.

Scott，就 RPU 而言，我認為本季 RPU 最大的故事是燃油附加費（fuel surcharge），因為本季燃油的變化所致。如果看我們的聯運，RPU 下滑 8%。若排除燃油附加費的影響，大約是 5 到 6 個百分點的影響，因此聯運 RPU 大概會是下滑 2% 到 3%。而商品（merchandise）方面，若排除燃油附加費影響，商品 RPU 其實會是上升的。

So a lot of mix issues, as we've talked about, you and I, and the rest of -- and everybody else, always mix plays an ongoing impact in any given quarter, just with the different RPUs and the different screens in the various commodity groups that we move. So we're always going to see that. But clearly, the big story this -- the headline story this quarter was the impact of fuel surcharge. So I'm not going to give much guidance going forward. But hopefully, as things moderate here with fuel, hopefully that we'll see a little bit less volatility on that side of the business going forward.

至於組合（mix）問題，正如我們談過的——你和我，以及其他人——在任何一個季度，因為我們運送的各類商品群有不同的 RPU、不同的結構，組合總是會持續造成影響。所以我們總會看到這種情況。但很明顯，本季最大的重點——標題性的因素——是燃油附加費的影響。因此我不會對未來提供太多指引。但希望隨著燃油在這裡趨於溫和，未來在這一塊業務上能看到較少的波動。

Your next question comes from Chris Wetherbee from Citi.

下一個問題來自花旗（Citi）的 Chris Wetherbee。

Kevin, you ran through, I think, a couple of costs that were -- it sounded a bit transitory from a second quarter perspective. I think severance cost around management restructuring, which may actually go from, I guess, a negative in 2Q to potentially a positive as we move forward. And I think COVID steps down a little bit. Number one, do you mind just kind of running through those again so we understand what sort of some of the discrete moving parts are between 2Q and then 3Q, maybe back half? And then when your previous comment about sort of cost on a per GTM basis kind of improving sequentially if things -- volume comes off the bottom, would this be incremental to that? Just want to get a sense of maybe some of the magnitude there. I'm not sure it's a lot, but I just want to make sure we understood it.

Kevin，你提到我想有幾項成本——聽起來相對於第二季而言有點偏一次性（transitory）。我想包括管理層重整相關的資遣費（severance cost），這可能會從第二季的負面，隨著往後推進轉為正面。另外我想 COVID 相關也會下降一些。第一，你介意再把這些項目快速梳理一次嗎？讓我們理解在第二季到第三季、也許到下半年之間，有哪些明確的變動因素。第二，關於你先前提到每 GTM（總噸英里）成本若在運量自谷底回升時可望逐季改善，這些會是額外的增益嗎？我想了解一下大概的量級。我不確定是不是很多，但我想確認我們理解正確。

Yes. I'll go through a little bit of it. So I called out the $60 million in total on a year-over-year basis. Part of that was the COVID supplies, which I called out around $10 million this quarter. Quite frankly, we did everything cost -- we prioritized speed over cost to get these supplies out to the field and protect the employees. So we experienced some pretty high cost on that, that will be coming down. We think it's about $2 million going forward on a run rate basis, which I said in my opening comments.

是的。我稍微說明一下。我提到年對年合計約 6,000 萬美元。其中一部分是 COVID 防疫物資，我提到本季約 1,000 萬美元。坦白說，我們在成本與執行上——我們把速度優先於成本，為了把這些物資送到第一線並保護員工。因此我們承擔了相當高的成本，而這部分會下降。我們認為未來以常態化（run rate）來看大約是 200 萬美元，我在開場致詞也提過。

On the severance side, we said that was about $10 million, with about $25 million annualized savings related to that. We had some equipment impairments within the quarter, call it mid-single-digit on the equipment impairments. And then, obviously, real estate gains on a year-over-year comparison basis was down significantly, about $26 million. So -- and then I also called out, depreciation was up this year following a late 2019 equipment study that we went through, essentially making its depreciation up year-over-year, which, obviously, has a lot of different components within it, but doesn't necessarily reflect the lower capital base that we have today.

在資遣費方面，我們說大約是 1,000 萬美元，對應的年化節省約 2,500 萬美元。本季我們也有一些設備減損（equipment impairments），大概是中個位數（mid-single-digit）的金額。另外，很明顯地，以年對年比較來看，不動產處分利益（real estate gains）大幅下降，約 2,600 萬美元。此外我也提到，折舊費用今年上升，原因是我們在 2019 年底做了一次設備研究，導致折舊年對年上升；這裡面有很多不同的組成，但不一定反映我們目前較低的資本基礎（capital base）。

In terms of going forward, there's a lot of things that we've done, and I spoke to this a little bit, a lot of other initiatives that we're working on currently that will have -- that you'll probably start to see show up in the third and fourth quarters, and quite frankly into 2021, that take a bit of time. When I think about leases, buying those out, getting out of leases that we worked with Jamie very closely to identify, that we don't need anymore. Those take a bit of time to get out of and see the savings. The procurement team has done an amazing job working with our suppliers. We're fortunate enough to be in a position today where we have -- we're a strong balance sheet, suppliers want to work with us, that provides leverage. We're working on cost savings that have a longer tail that can, hopefully, have multiyear savings behind them, and so those things will start to show up, which I'm very excited about.

就未來而言，我們做了很多事情，我也稍微提到，目前正在推動的其他許多措施，可能會在第三、第四季開始反映出來，坦白說也會延續到 2021 年，因為需要一些時間。例如我想到租賃（leases），把它們買斷、退出一些我們與 Jamie 非常密切合作所辨識出來、已不再需要的租賃。這些需要一些時間才能退出並看到節省。採購團隊與供應商合作做得非常出色。我們很幸運，今天我們的資產負債表很強健，供應商也願意與我們合作，這提供了談判槓桿。我們正在推動一些尾端較長（longer tail）的成本節省，希望能帶來多年期的節省，因此這些將會開始顯現，我對此非常期待。

But there's -- we have probably over a list of 30 different areas, which we're going through that are nonlabor-related that we think are great opportunities: vehicle spend, utilities. We've done a great job on the fuel sourcing side. We think there's big opportunities there over the longer term. We've gotten really, really efficient. We're doing great there, but we can source our fuel a lot better, too. And Jamie and his team are really helping us there, think creatively on that side. And then I also mentioned the management [of] labor, that will obviously have some impact in the following quarters and in the next year.

此外——我們大概有超過 30 個不同領域的清單正在檢視，這些都是我們認為很好的非勞動力（nonlabor-related）機會：車輛支出、公共事業費（utilities）。在燃油採購（fuel sourcing）方面我們做得很好。我們認為長期來看那裡有很大的機會。我們已經變得非常、非常有效率。我們在那方面做得很棒，但我們也可以把燃油採購做得更好。Jamie 和他的團隊在這方面確實幫了我們很多，協助我們用更有創意的方式思考。另外我也提到勞動力的管理（management [of] labor），這顯然會在接下來幾季以及明年帶來一些影響。

So we're pretty excited about those. And now that we can get through the quarter. We have -- we're all going to meet again next week and go through the list, and hopefully, it continues to grow.

所以我們對這些感到相當興奮。而且現在我們可以把這一季走完。我們——我們下週都會再聚一次，把清單逐項檢視，希望它能持續增加。

Your next question comes from Brian Ossenbeck from JPMorgan.

下一個問題來自摩根大通（JPMorgan）的 Brian Ossenbeck。

Maybe one for Jamie. Just want to ask about train size and weights as it applies to CSX, maybe the Eastern network in general. And we're hearing a lot of that from Western and Canadian peers. Maybe if you can provide some context as to how much they grew sequentially, as volumes fell, if that was one of the levers you could pull. And are there any upper limits to what the network might be able to handle either from an investment perspective or perhaps a physical with grade crossings, if you think that's really a difference, or perhaps a constraint, when you look at some of the peers operating with a lot bigger train size and weights during this pandemic?

也許有一題給 Jamie。想請教列車編組長度與重量，套用到 CSX，或更廣泛的東部路網的情況。我們從西部與加拿大的同業那邊聽到很多相關討論。如果你能提供一些背景：在運量下滑時，這些指標按季成長了多少？這是否是你們可以運用的槓桿之一？另外，從投資角度或實體限制（例如平交道）來看，路網可承載的上限在哪裡？你是否認為，與一些同業在疫情期間以更大列車編組長度與重量運行相比，這會是差異點或限制因素？

Yes, Brian, we did see some good gains with both of our tonnage and length here in the past quarter hitting some records for ourselves, pushing -- push ourselves over 7% higher on our tonnage and around 4% on our length. We've only given a small piece of that back through the -- to the 25% of volume that we've seen. So we expect to see that continue forward. And that is a -- it is a big item that we talk about. When we continue to design this network, and we continue to look for those structural changes, is that we'd like to continue to see our train length grow. And depending on which corridor you're at, there's lots of opportunity on that end. So we're not going to give it all back. I can tell you that right now. And we'll continue to -- as we -- as I mentioned earlier, with the auto network and how we were putting that together with our intermodal network and our merchandise network, that gives us those opportunities to continue to grow our footage and our tonnage on our network, and we have got a great network out there that has long sidings, that has double track. That is not an issue at all with respect to our network. We do have some grades in areas that may be more of a challenge in some areas, but that's where distributed power comes in. And in order -- in some areas, if we use a third locomotive instead of adding a train start, and pushing a little more footage or tonnage, we'll continue to do that.

是的，Brian，我們在上一季確實在總噸數與列車長度兩方面都看到不錯的提升，創下我們自身的一些紀錄——我們把總噸數推高了超過 7%，列車長度約提升 4%。即便我們看到運量下滑約 25%，我們也只回吐了其中一小部分。因此我們預期這個趨勢會延續下去。而且這——這是我們經常討論的一個重點。當我們持續設計這個路網、並持續尋找那些結構性變革時，我們希望列車長度能持續成長。而且取決於你所在的走廊，這方面有很多機會。所以我們不會把它全部回吐。我現在就可以告訴你。我們也會持續——如我先前提到的，汽車路網如何與我們的聯運路網及一般貨運（merchandise）路網整合，這讓我們有機會在路網上持續提升列車總長（footage）與總噸數；而我們的路網條件很好，有長會讓線（sidings），也有複線（double track）。就我們的路網而言，這完全不是問題。確實有些區段存在坡度（grades），在某些地區可能更具挑戰，但這就是分散式動力（distributed power）派上用場的地方。而且在某些地區，如果我們使用第三台機車，而不是再加開一列車，並把列車總長或總噸數再往上推一點，我們會持續這麼做。

Some other things, I guess, to your second question somewhat. We have found some more opportunities out on the network with respect to some corridors that we can do some small investments on, which we are. I'd use an example of a trip that I was on a couple of weeks ago, and Kevin joined me on that trip around the railroad. We found an area where we were backhauling cars millions of miles, really, backhauling automobiles that were coming off of St. Louis would have to go all the way up to Toledo to come down to Cincinnati because we had a subdivision, the Indiana sub, which was not cleared for autos. This past month, our engineering team has done a fantastic job, or I guess the past 2 weeks, and clearing a way for undercutting bridges and allowing the auto network to go direct now from St. Louis via Indianapolis down to Cincinnati, again, saving millions of out-of-route miles. So we continue to find those kind of opportunities out there. The more and more we get out on the network, the more and more we work with the local people who are out there to ensure that we don't miss some of these opportunities, those are lasting structural changes that we will continue to see across our network.

另外一些事情，我想也算是回應你第二個問題的一部分。我們在路網上也發現更多機會：在某些走廊做一些小額投資就能改善，我們也正在做。舉例來說，我幾週前搭乘的一趟行程，Kevin 也和我一起沿著鐵路線走訪。我們發現有一個區段，我們把車輛回送（backhauling）了數百萬英里——實際上是把從聖路易斯（St. Louis）出來的汽車回送，必須一路往北到托萊多（Toledo），再往南到辛辛那提（Cincinnati），因為我們有一個分區線（subdivision），也就是 Indiana sub，當時並未清空（cleared）以供汽車通行。

Your next question comes from David Ross from Stifel.

下一個問題來自 Stifel 的 David Ross。

Wanted to ask about the service levels. On Slide 10, both the trip plan performance and intermodal ticked down a little bit, a little bit more on the intermodal side. Was there also a difference between that quarter average, say on the 94% for intermodal, versus how it was the beginning of the quarter versus the end of the quarter? Is that 94% consistent? Or did it go from kind of a 96% to a 92% as you moved through the quarter and volume came back? And how does that relate to taking share back from truckload, especially as rates are improving on the truckload side?

我想問一下服務水準。在第 10 張投影片上，無論是行程計畫（trip plan）達成率還是聯運（intermodal）都有小幅下滑，聯運那邊下滑更明顯一些。在該季平均值（例如聯運 94%）方面，季初與季末之間是否也有差異？這個 94% 是一致的嗎？還是說，隨著季度推進、運量回升，它從大約 96% 下降到 92%？另外，這與從卡車整車運輸（truckload）那邊搶回市占的關係是什麼，尤其是在卡車整車運價正在改善的情況下？

I'll take on the first part, and then I'll pass it over to Mark to talk a little bit about the customer side. But on our trip plan side, exactly what happened is your example, [we] were towards the growth when we started to see this large pickup on our business. When we went to this 25% increase in volume in 6 weeks, we definitely saw a little bit of a -- deterioration, I guess, really -- in some of our trip plans across the board. We're in a much better situation now. But it is an enormous task to turn this big ship in 6 weeks to absorb that kind of volume.

我先回答第一部分，然後再交給 Mark 談一下客戶端的情況。就我們的行程計畫而言，發生的情況正如你舉的例子：當我們開始看到業務大幅回升時，在 6 週內運量增加 25% 的情況下，我們確實看到整體行程計畫在某種程度上——我想可以說——出現一些惡化。我們現在的狀況好多了。但要在 6 週內讓這艘大船轉向、以吸收那樣的運量，確實是一項艱鉅的任務。

Operating team, I would say, has done an amazing job. Marcelo Estrada, who runs our Intermodal business, has done a great job making sure that trains that did arrive late to some of our ramps were offloaded faster by utilizing some of the assets we had at that end. But to your point, some of those percentages have dropped and we're starting to see that rebound come back. But definitely, very, very large volume swing.

我會說營運團隊做得非常出色。負責我們聯運業務的 Marcelo Estrada 也做得很好，確保那些晚到我們某些場站（ramps）的列車，能透過運用我們在那端的部分資產更快卸載。但如你所說，其中一些百分比確實下滑了，而我們也開始看到回升反彈。不過這確實是非常、非常大的運量波動。

Yes. And I'd say, just on sort of truck conversions, I guess good news/bad news, yes, to Jamie's point, we saw some of the trip plan performance numbers fall below where I think we'd like to see them for Intermodal. I mean we were sort of 98%, 99%. And again, full visibility to our customers. We provided that last year in October. So they see exactly what we're -- how we're performing to these trip plans. In the depths of this crisis sort of in May, volumes were down pretty substantially. And so wasn't too much of an issue, and we were doing okay there. So -- but certainly, as volumes have picked up since the trough in mid-May, the service levels have improved quite substantially and continue to improve every day. So as these volumes come back, we're -- our trip plan performance is continuing to improve really nicely. And so I think if you talk to our channel partners, they would say that we were there for them even during the trough, and we'll continue to be there for them, especially as these domestic volumes are rebounding and coming back.

是的。我想就卡車轉換（truck conversions）來說，算是好消息/壞消息：是的，如 Jamie 所說，我們看到一些聯運的行程計畫達成率低於我們理想的水準。我的意思是，我們原本大概在 98%、99%。而且客戶完全看得到我們的表現。我們在去年 10 月就提供了這個功能。所以他們能清楚看到我們——我們在這些行程計畫上的表現如何。在這次危機最嚴重的時期，大約在 5 月，運量大幅下滑。因此問題不算太大，我們那時表現也還可以。所以——但當然，自 5 月中旬觸底以來，隨著運量回升，服務水準已大幅改善，且每天都在持續改善。因此當這些運量回來時，我們的行程計畫達成率也在非常明顯地持續改善。所以我想如果你去問我們的通路合作夥伴，他們會說即使在谷底期間我們也支持他們，而我們也會持續支持他們，特別是在這些國內運量反彈並回升之際。

Your next question comes from Justin Long from Stephens.

下一個問題來自 Stephens 的 Justin Long。

Thanks, and good afternoon. So I was wondering if you could talk about your active locomotive count. I'm sure that's something that fluctuated throughout the quarter, just given the volatility that you mentioned in volumes. So can you just give us a sense on how that progressed over the course of 2Q and how you're thinking about the active locomotive count in the back half of the year? And then also along those lines, would love to get your latest thoughts on the locomotive overhauls that you plan to do this year and longer term?

謝謝，下午好。我想請教你們的在役機車數量。我相信這個數字在整個季度中會有所波動，畢竟你們提到運量相當具波動性。能否請你們談談在 2Q 期間這個數字的變化走勢，以及你們如何看待下半年在役機車數量？另外也想請你們分享一下，今年計畫進行的機車大修（overhauls）以及更長期的規劃，最新的看法是什麼？

Yes, absolutely. Look, our locomotive fleet year-over-year Q2 was down over 650 locomotives. We have, obviously, brought back some of those locomotives. So we were -- we did hit some all-time lows down in the 1,800s -- 1,800 locomotives when we had a business decline that was pushing down towards 28%. Coming back to where we are now, we're just into the -- above, into the 2,000s, and we will continue to monitor that. We monitor it really daily when we look at our locomotive fleet. We have, as Kevin mentioned, over 1,000 locomotives sitting in storage. And we do have some locomotives that are ready to go in different areas. We position them properly. Now when we -- we're very selective of what locomotives we put in storage. We made sure that we put down those that weren't -- that were higher fuel burn that didn't give us the best performance. And we tuck those really towards the back of the storage area as we continue to rebound and bring back some of the locomotives.

是的，當然可以。你看，我們的機車車隊在第二季與去年同期相比，減少了超過 650 輛機車。而我們也確實把其中一些機車重新投入使用。所以我們——我們曾經在 1,800 多輛的區間觸及歷史低點——當時業務下滑幅度接近 28%。回到目前的位置，我們剛剛回到——略高於 2,000 輛的區間，我們會持續監控。我們在檢視機車車隊時，幾乎是每天都在監控。如 Kevin 提到的，我們有超過 1,000 輛機車在封存（storage）中。而且我們也有一些機車在不同區域已經準備好可隨時投入使用。我們會把它們妥善配置到正確的位置。現在，當我們——我們對於哪些機車要封存是非常有選擇性的。我們確保先停放那些——耗油較高、表現不夠好的機車。而隨著我們持續復甦、逐步把部分機車拉回來使用，這些機車就會被放在封存區較後面的位置。

But that's where it's important that we continue to do a rebuild program. We believe in that rebuild program. We're finishing up what we committed to this year and next year as well, 30-plus locomotives that we're going to continue to rebuild into next year. I mean the fuel efficiency you get from those locomotives as well as the reliability. At CSX, we found early on that we had a tired fleet and we needed to do something about it. We had well over 4,000 locomotives 3 years ago, to where you see where our numbers are today. And at CSX, what -- in the past, they just continued to buy locomotives and just add them to the fleet and never retired anything. So we've taken the opportunity over the last 3 years to make sure we've got the most efficient, reliable locomotives out there, and that's what we're pushing across the network now. And particularly, on the distributed power and that technology wasn't really utilized at CSX when we first got here. And this team has done an unbelievable job wrapping their arms around that and understanding the importance of that fleet. And one last point with our locomotive fleet is, we're very lucky that the majority of our fleet is AC locomotives, which is more reliable. We've put down the majority of our DC locomotives. We did that a while ago, and we finished off changing out some of those to the AC fleet we had stored, which allows us to pull more horsepower per locomotive. And again, that reliability.

但這也正是為什麼我們必須持續推動重建（rebuild）計畫，這點很重要。我們相信這個重建計畫。我們正在完成今年與明年的既定承諾，也就是 30 多輛機車，我們會持續重建到明年。我的意思是，這些機車帶來的燃油效率提升以及可靠性。在 CSX，我們很早就發現車隊已經疲乏，需要採取行動。三年前我們有遠超過 4,000 輛機車，而你也看到我們今天的數字。而在 CSX，過去——他們只是持續購買機車、把它們加入車隊，卻從未汰除任何機車。因此過去三年我們把握機會，確保我們擁有最有效率、最可靠的機車，這也是我們現在在全網路推動的方向。尤其是在分散動力（distributed power）方面，當我們剛來到這裡時，CSX 並沒有真正運用這項技術。而這個團隊在掌握並理解這項技術與車隊重要性方面，做得非常出色。關於我們機車車隊最後再補充一點：我們非常幸運，因為我們車隊的大多數是 AC 機車，可靠性更高。我們已經停放了大多數 DC 機車。這件事我們早就做了，並且也完成把其中一些更換為我們封存的 AC 車隊，這讓我們每輛機車可以拉出更高的馬力。同樣地，也提升了可靠性。

Your next question comes from Jon Chappell from Evercore ISI.

下一個問題來自 Evercore ISI 的 Jon Chappell。

Thank you. Good afternoon, everyone. Kevin, you mentioned the elevated cash balance, and you've been able to add to that board without really adding significant debt. So you're still very net debt, and be in a good position there. Started buybacks in June, it looks like, which was probably earlier than you had anticipated the last time you spoke to us in April. Can you just give us some cadence around how we should think about capital return in the second half of the year? Is the third quarter going to maybe look like a measured pace like June? Or could we see a return to the type of buyback pace of prior?

謝謝。各位下午好。Kevin，你提到較高的現金餘額，而你們在不需要大幅增加負債的情況下就能把現金水位提高。所以你們仍然是淨負債（net debt）狀態，而且在這方面處於良好位置。看起來你們在 6 月開始回購，這可能比你們上次 4 月跟我們談時預期的更早。能否請你談談我們應該如何看待下半年資本回饋（capital return）的節奏？第三季會不會像 6 月那樣採取較為克制的步調？或者我們可能會看到回到以往那種回購速度？

Yes. I don't think we're sitting here thinking we're out of the woods yet. So I think the approach is going to continue to be very, very prudent, Jim and I talk about that a lot every week, but also opportunistic at the same time. I mean, clearly, on a long-term, medium-term basis, we don't need $2.6 billion of cash on our balance sheet. We need something well north -- south of $1 billion to really run our business. So we have a lot of excess liquidity right now. Certainly makes me feel good at night to go to bed and have that cash balance, just given all the uncertainty in the world today, but we'll use it effectively over the next few quarters. And talk closely with our Board as well on the strategy around that.

是的。我不認為我們坐在這裡就覺得已經完全脫離險境。所以我認為我們的做法會持續非常、非常審慎——Jim 和我每週都會大量討論這點——但同時也會把握機會。我的意思是，很明顯地，從長期、中期來看，我們不需要在資產負債表上放著 26 億美元的現金。要營運我們的業務，我們真正需要的是遠低於——大約 10 億美元以上的水位。所以我們目前有相當多的超額流動性。當然，考量到當今世界充滿不確定性，晚上能帶著這樣的現金餘額入睡會讓我感覺很好，但我們會在接下來幾個季度有效運用它。也會與董事會就相關策略保持密切溝通。

Your next question comes from Jordan Alliger from Goldman Sachs.

下一個問題來自 Goldman Sachs 的 Jordan Alliger。

One thing I'm curious about on the wage inflation or said another way, your cost per employee, which I believe was down pretty sharply in the second quarter. I know there's moving parts with employees, furloughed employees coming back, but any sense you could give how we should think about that part of the equation going forward?

我有一點好奇的是薪資通膨——或者換句話說，你們的每位員工成本（cost per employee），我相信在第二季下降得相當明顯。我知道其中有一些變動因素，例如被暫時解雇（furloughed）的員工回來等，但你們能否談談我們未來應該如何看待這部分的走勢？

Yes. Look, there was a few moving parts to that in the second quarter. One, when you look at our headcount number, it included 300 on the reserve boards, on average through the quarter. And obviously, the costs related to those employees is lower than what you would see on average. And we no longer have those reserve boards when you look into the third quarter. So you'll see some normalization there. Also, I highlighted the incentive comp, and that will also have an impact in the quarter as well, and we'd expect that to normalize a bit here.

是的。你看，第二季這部分有幾個變動因素。第一，當你看我們的人頭數時，其中包含平均每季有 300 人在備用名單（reserve boards）上。而很明顯地，與這些員工相關的成本會低於你通常看到的平均水準。而當你看到第三季時，我們已經不再有這些備用名單。所以你會看到一些正常化。另外，我也提到獎勵性薪酬（incentive comp），這也會對該季度產生影響，而我們預期這部分也會在這裡稍微正常化一些。

Sequentially, when you look at the headcount, probably something more flattish into the third quarter, on average, the same average that you saw in the second quarter, but I would expect the overall per employee costs to go up slightly here, particularly with the midyear union wage increase as well.

按季來看，當你看人頭數，第三季可能會比較持平，平均值大致與你在第二季看到的平均水準相同；但我預期每位員工的整體成本會在此略微上升，特別是因為年中工會薪資調升的影響。

The next question comes from Bascome Majors from Susquehanna.

下一個問題來自 Susquehanna 的 Bascome Majors。

Mark, much earlier in the call, you spoke about your efforts to reconvert some freight that the carload business had lost over the years, and add some freight that has always moved on truck and hasn't moved on the railroad. As the trucking market seems to be moving to an inflationary pricing backdrop pretty quickly here, can you take a step back and let us think about where you are in the sales cycle in some of these efforts that may have been disrupted by COVID and its impact on your business and your customers' business? And just really, do you size this up as a needle-moving opportunity for CSX and investors over, say, a 2-year time frame?

Mark，在電話會議更早的時候，你談到你們努力把多年來在整車（carload）業務中流失的一些貨源重新爭取回來，並且新增一些一直以來走卡車、從未走鐵路的貨源。隨著卡車市場似乎很快轉向通膨式的定價環境，你能否退一步，讓我們了解在這些努力上你們目前處於銷售循環（sales cycle）的哪個階段——其中一些可能因 COVID 及其對你們業務與客戶業務的影響而被打亂？另外，整體而言，你是否認為在例如兩年的時間框架內，這會是對 CSX 與投資人具有「能改變局面」（needle-moving）的機會？

Yes. Thanks, Bascome. Listen, I certainly hope so. I think, as I said, it's been -- this pause, I would say, has been sort of a refreshing time period for people from working at home, to sort of step back and reevaluate things and where we are and what the priorities are and where we're focusing and look at opportunities opportunistically going forward. And I think we are seeing the opportunity to look at a lot of those conversion opportunities, and we know there's a huge market out there for us to be able to go out and tap and address, that maybe just because for various reasons, over the years CSX has ignored or just didn't want to move it or it wasn't focused on those opportunities. And I think as we are looking to grow and looking for opportunities with a better service product, a lower cost basis, which opens up the opportunities for us to play in some markets that traditionally we couldn't before, and to price them. I think maybe this is sort of a defining moment here, and we'll see -- we're extremely excited by the opportunities going forward.

是的。謝謝你，Bascome。聽著，我當然希望如此。我認為，正如我所說，這段暫停期——我會說——對於在家工作的人而言，算是一段相當令人耳目一新的時間，讓大家能夠稍微退一步，重新評估事情、我們所處的位置、優先事項是什麼、我們的重點放在哪裡，並以前瞻且更具機會主義的方式去看待未來的機會。我想我們確實看到了檢視許多轉換（conversion）機會的契機，而且我們知道外面有一個龐大的市場，讓我們能夠走出去開拓並加以切入與服務；也許因為各種原因，多年來 CSX 忽視了這些機會，或是不想推動，或是沒有把重心放在這些機會上。而我認為，當我們尋求成長並尋找機會時，憑藉更好的服務產品與更低的成本基礎，這為我們打開了在一些傳統上我們以前無法參與的市場中競爭的機會，並且能夠對其定價。我想這可能算是一個相當關鍵的時刻；我們將拭目以待——我們對未來的機會感到非常興奮。

Now you've got to understand the environment we're in. We're in a very tough situation, given the current economic environment with COVID-19 and the economy where it is. But certainly regardless, we're still seeing great opportunities. And I think those opportunities will continue. And when the economy does recover and industrial production does resume back at full strength and the consumer economy is back at full strength and business is roaring again, I think you will see those efforts pay off big-time.

現在你必須了解我們所處的環境。在目前 COVID-19 與當前經濟情勢之下，我們正處於非常艱難的局面。但即便如此，我們仍然看到很好的機會。而且我認為這些機會會持續存在。當經濟復甦、工業生產恢復到全力運轉、消費端經濟回到全力狀態、企業再度蓬勃發展時，我想你會看到這些努力帶來非常顯著的回報。

Your next question comes from Ravi Shanker from Morgan Stanley.

下一個問題來自摩根士丹利（Morgan Stanley）的 Ravi Shanker。

Maybe shifting gears and actually looking out a little bit. I don't know if you guys have paid much attention given everything going on. But the kind of INVEST in America infrastructure build that's kind of going through the House right now has a few kind of rail provisions in there, some of which kind of include things like mandating 2-person crews and launching Congressional investigations into kind of PSR and the impact of PSR or something. So just wanted to get kind of your thoughts on that, if you've spent any time with your folks in D.C. and maybe labor, just your latest conversations on going to 1-person crews and maybe kind of sizing the risk that if you do have some kind of political change in D.C., it could potentially kind of undo some of the gains you've seen on PSR over the years?

也許換個角度，實際上把視野稍微放遠一點。我不知道在目前這麼多事情發生的情況下，你們是否有太多關注。不過目前在眾議院推進的那種「INVEST in America」基礎建設法案，裡面有一些與鐵路相關的條款，其中有些包括例如強制要求雙人乘務（2-person crews），以及對 PSR 及其影響等發起國會調查之類的內容。所以想請教你們對此的看法：你們是否花時間與你們在華盛頓特區的團隊、以及可能與工會方面交流？另外，關於轉向單人乘務（1-person crews）的最新對話是什麼？以及如果華盛頓特區出現某種政治變化，是否可能在某種程度上抵消你們多年來在 PSR 上看到的一些成果——你們如何評估這個風險？

Well, seeing as how it's a Washington question, I think it's appropriate that I say I'll have to answer the question in a politically correct manner because I don't want to tell you what I really think of it. Everything comes out with a wish list that's put forward by a well-known people with agendas. And I don't know that politically, billions and billions of dollars of capital investment over years and years and years on how to run the railroad appropriately and safely is going to be undone by some -- with some political mandate. But we're certainly not focused on that. And -- but again, I've been around a long time. And there's -- I'm sure somewhere in some State House, somebody is drafting up a bill right now to put the firemen back on the diesel locomotives. So we're aware of the situation. We follow all these developments in Washington and elsewhere, but it's just a part of doing business. But it's not something that distracts us.

嗯，既然這是一個華盛頓的問題，我想我用政治正確的方式回答是合適的，因為我不想告訴你我真正的想法。每次都會有一份願望清單被提出來，通常是一些眾所周知、各自帶著議程的人所推動的。而我不認為在政治上，過去多年、投入數十億又數十億美元的資本投資，用於如何適當且安全地營運鐵路，會因為某些——某種政治命令就被推翻。但我們當然不會把重心放在那上面。而且——不過話說回來，我在這行很久了。我敢肯定，在某個州議會的某個地方，現在就有人正在起草一項法案，要把司爐（firemen）重新放回柴油機車上。所以我們了解這個情況。我們會關注華盛頓以及其他地方的所有這些發展，但這只是做生意的一部分。但這不是會讓我們分心的事情。

Your next question comes from Cherilyn Radbourne from TD Securities.

下一個問題來自 TD Securities 的 Cherilyn Radbourne。

Just wanted to ask a question on overtime. You referenced some substantial reductions there this quarter as you have in prior quarters. So was CSX pre-PSR organized in such a way that it was more reliant on overtime? And what do you think the remaining opportunity is there? And would you expect that to have a knock-on benefit on safety?

我想問一個關於加班（overtime） 的問題。你提到本季加班有相當幅度的下降，前幾季你也提過。所以 CSX 在導入 PSR 之前的組織方式，是否使得它更依賴加班？你認為在這方面剩餘的改善空間還有多少？以及你是否預期這會對安全帶來連帶的正面效益？

Overtime, we've mentioned, I think, over the past couple of quarters, how important it was for us to get it in control, which we have and we've hit out some great numbers across the board. And it's also an area where we are able to use to flex as well. So even though -- I know Kevin threw out some numbers, which were some very good percentages that we were able to drop. There are some areas as the business started to come back as fast as it did, that we were able to flex ourselves and utilize a little bit of that pent-up overtime, if you want to say, by bringing it down. So is there more opportunity? Yes, absolutely, there is. On our engineering end, I know Ricky Johnson is working really hard with his engineering team to continue to bring down the costs, particularly with the amount of time that they're getting out on the railroad, to ensure that we're bringing those numbers down.

關於加班，我想我們在過去幾個季度提過，對我們而言把它控制住有多重要；我們已經做到了，而且在各方面都交出非常亮眼的數字。同時，加班也是我們可以用來做彈性調整的一個領域。所以即便——我知道 Kevin 提到了一些數字，那些都是我們能夠降低的非常好的百分比。但在某些領域，當業務回升的速度像那樣快時，我們也能夠做出彈性調整，並在你可以說的情況下，透過把加班降下來，去消化一點先前累積的加班量。所以還有更多機會嗎？是的，絕對有。在工程（engineering）端，我知道 Ricky Johnson 正和他的工程團隊非常努力地持續降低成本，特別是他們在鐵路線上作業所投入的時間，以確保我們把那些數字降下來。

On the mechanical side, we've done an unbelievable job, which Kevin had mentioned, with respect to where our overtime is at. And yes, we'll continue to drive down those numbers. But ultimately, we'd like to get those overtime numbers down so then when there's the time where we need it for a small surge, we're able to utilize those employees on overtime. If we get into an area where we need to do some hiring, we're able to use that as a bit of a bridge for us to get to that point. Overtime and safety, I don't really -- there isn't really a lot of correlation for me on overtime and safety. Safety is, as Jim had started out the opening, is forefront for us. The #1 most important piece of railroading and how we start all of our discussions around the railroad, and will continue to be.

在機務（mechanical）端，我們做得非常出色，正如 Kevin 提到的，就我們的加班水準而言。而且是的，我們會持續推動把那些數字降下來。但最終，我們希望把加班數字降到更低，這樣當我們需要因應一個小幅度的需求激增時，我們就能夠運用員工加班來支援。如果我們進入一個需要招募人手的情況，我們也能把加班當作一個過渡的橋樑，幫助我們撐到那個時間點。至於加班與安全，我個人不太——我認為加班與安全之間並沒有太多相關性。安全正如 Jim 在開場時所說，是我們最優先的事項。這是鐵路營運中最重要的第一要務，也是我們所有關於鐵路的討論如何開始的核心，並且會持續如此。

Your next question comes from Walter Spracklin from RBC Capital.

下一個問題來自 RBC Capital 的 Walter Spracklin。

I wanted to focus on a little bit of the structural change that's been precipitated here by COVID-19, and really focus on 2 elements, and love to hear your commentary on both. First of all, is whether your capital intensity is something you're relooking at or you're reexamining. Mark, you talked about getting into new areas you haven't been in before. But are you looking as well to getting out of areas where you have been and that have been in significant and structural decline? Particularly on coal, could we see some line divestitures that would come about as a result of the significant decline in coal?

我想聚焦在 COVID-19 所引發的一些結構性變化，並且特別聚焦兩個要素，也很想聽聽你對兩者的評論。第一，你們是否正在重新檢視或重新審視你們的資本密集度（capital intensity）？Mark，你談到進入一些你們以前沒有涉足的新領域。但你們是否也在考慮退出一些你們過去涉足、且正處於顯著且結構性衰退的領域？特別是在煤炭方面，隨著煤炭大幅下滑，我們是否可能看到一些路線資產剝離（line divestitures）因此而發生？

And the second part of this structural change is how well you and the railroads have done both in the global financial crisis and now this one, whether you reexamine your capital structure and whether additional leverage is something that you could contemplate going forward, given the consistency that you've been able to provide from a financial perspective through some of these very difficult times.

第二個結構性變化是，你們以及鐵路業在全球金融危機以及這一次危機中表現都相當不錯；你們是否會重新檢視你們的資本結構（capital structure），以及在未來是否可能考慮提高槓桿（additional leverage），鑑於你們在財務面向上，於這些非常艱難的時期仍能提供一致性表現。

Well, let me start, and maybe some of the other guys want to jump in here with some brief comments. We're not in -- we don't have a railroad that's up for sale. We're very comfortable with our network. We've -- we're in the business right now of looking for business. We're open for business. We're chasing every piece of business that we can get after. Our strategy is to grow this company. Maybe that wasn't the case when the cost structure was what it was before. But based upon our levels of efficiency, what we think we can do in the marketplace, we're not interested in divesting. And so our network is rock-solid.

好，我先開始，或許其他幾位也想在這裡補充幾句簡短的評論。我們並不是——我們沒有任何一條鐵路要出售。我們對自己的路網非常滿意。我們——我們現在的業務重點是在尋找業務。我們對外開放、歡迎業務。我們在追逐每一筆我們能爭取到的業務。我們的策略是把這家公司做大。也許在過去成本結構還是原來那樣的時候，情況並非如此。但基於我們的效率水準，以及我們認為自己在市場上能做到的事，我們對資產剝離沒有興趣。因此，我們的路網非常穩固。

In terms of the financial reengineering, so to speak, based upon what we've been through, I think for a company like CSX that has dramatically changed its financial profile and dramatically changed its cash flow, I think what was important to the rating agencies and others was to watch us work our way through various different economic scenarios. And I don't think you could probably draw up a better stress test for a railroad to see how you're going to perform in difficult circumstances than what we are going through not only associated with the pandemic, but what we've gone through before that, with basically an industrial recession. So you take the industrial recession, you throw in there the pandemic on top of that, you start figuring out what's going to transpire in the fall with the elections. And all we do is keep kicking out cash day after day after day, hour after hour. I think, yes, that we have proven to the world that we have transformed this company into a very, very strong and stable financial company. That -- and right now, we have no -- obviously there's just no reason to do that. Kevin just told you we got the -- he's having a hard time finding a place to store the cash, that if we decided that we wanted to lever up further, we've already -- we've proven to the world that we are -- we have the capability and the wherewithal to do that. So I think it's a -- I think we're, again, proof is in the pudding. People asked us, what are you going to do, 2.5 years ago when we started on this adventure. This is what we told everybody what we're going to do. And now we -- and again, we've proven it.

就所謂的財務再工程而言，基於我們所經歷的一切，我認為對於像 CSX 這樣已大幅改變其財務輪廓、也大幅改變其現金流的公司來說，對信評機構與其他人而言，重要的是觀察我們如何在各種不同的經濟情境下走過來。而我認為，你大概很難為一家鐵路公司設計出比我們正在經歷的更好的壓力測試，來看看你在艱困環境下會如何表現——這不僅與疫情相關，還包括在那之前我們所經歷的、基本上是一場工業衰退。所以你把工業衰退算進去，再把疫情疊加上去，然後開始推演秋季選舉會發生什麼。而我們所做的，就是一天又一天、每一個小時都持續產生現金。我想，是的，我們已向全世界證明，我們已把這家公司轉型為一家非常、非常強健且穩定的財務型公司。而——就目前而言，我們沒有——顯然也完全沒有理由去做那件事。Kevin 剛剛也告訴各位，我們——他甚至很難找到地方來放這些現金；如果我們決定要進一步提高槓桿，我們已經——我們已向全世界證明，我們——我們有能力也有資源去做到。所以我認為這是——我認為我們再次證明了，成果最能說明一切。在 2.5 年前我們開始這段旅程時，人們問我們，你們要做什麼？這就是我們當時告訴大家我們要做的事。而現在我們——而且再次，我們已經證明了。

Your next question comes from David Vernon from Bernstein.

下一個問題來自 Bernstein 的 David Vernon。

Jim or Kevin, I just wanted to follow up on this issue of kind of cost in relation to volume. It looks like, from the commentary earlier, it sounded like we've just fallen below a water mark where it's too difficult to pull out cost or it happened too quickly.

Jim 或 Kevin，我只是想就成本與運量之間的關係追問一下。從先前的評論來看，聽起來好像我們剛好跌破了一個臨界點，導致成本很難再拉下來，或者是變化發生得太快。

I'm trying to get a sense for what level of RTMs do you think you need in the network to where profitability would be kind of stable on a year-over-year basis? Or is that not the right way to think about it?

我想了解的是，你們認為路網需要達到什麼水準的 RTM，才能讓獲利在年對年的基礎上大致保持穩定？還是說，這樣思考並不恰當？

Profitability stable from an OR perspective on a year-over-year basis?

你指的是從 OR（營運比率）的角度，年對年的獲利穩定嗎？

Just in terms of like an EBIT level, right? So volume was down 21% or so, operating profit, 35% or so. And clearly, it sounds like there was some deleveraging from volume. What I'm trying to get at is, how much volume do you need to get back and does it matter if it comes back as coal or intermodal or merchandise, or is it just RTMS? Like is it 45 million RTMs? Like, what's the magic number where you feel like that deleveraging doesn't happen?

就像 EBIT 的水準而言，對吧？運量大約下滑了 21%，營業利益大約下滑了 35%。而且很明顯，聽起來運量下滑帶來了一些去槓桿效應。我想問的是，你們需要多少運量回來？以及回來的是煤炭、聯運還是一般貨運，是否重要？還是只看 RTM？例如是 4,500 萬 RTM 嗎？有沒有一個神奇數字，讓你們覺得那種去槓桿效應不會發生？

Yes. I mean I feel a lot better today where volumes are down mid-single digits versus the 20s that we were looking at. That's certainly helpful. So I think we're in a much better place right now. And as I mentioned, I think you're going to see some -- you'll see across-the-board improvement on a cost per GTM level as we move into third quarter, assuming these volumes continue to recover from what we saw in the second quarter. So I'm very confident there. And I'd remind everyone, it was just a quarter ago where we were -- and traditionally, what would be seasonally the worst quarter for us, posted a 58.7. And I would -- I think we'd all agree here around the table today that all the things that we've done in the past 3, 4 months has made us a better company, and probably provided more leverage as the volume comes back. So I'm more confident sitting here than I was when we reported in April that 58.7, that we can really leverage it. It's just waiting on the economy to improve and going after it. So we've got a lot of initiatives that we'll continue to work on, that will hopefully continue to improve that.

是的。我的意思是，相較於我們之前看到的 20% 多的下滑，現在運量只下滑中個位數，我今天的感受好多了。這當然有幫助。所以我認為我們現在處在更好的位置。而如我提到的，假設運量持續從第二季所見的水準回升，我認為你會在第三季看到一些——你會看到以每 GTM 成本衡量的全面改善。所以我對此非常有信心。我也提醒大家，就在一季之前，我們——而且傳統上那會是我們季節性最差的一季——仍繳出了 58.7。而我——我想今天在座各位都會同意，我們在過去 3、4 個月所做的一切讓我們成為一家更好的公司，並且在運量回升時可能提供更大的槓桿。所以相較於我們在 4 月公布 58.7 時，我坐在這裡更有信心，我們真的能把槓桿效益發揮出來。現在只是等待經濟改善，然後全力爭取。因此我們有很多會持續推進的計畫，希望能繼續改善那個表現。

And just to answer your other question, an RTM is not an RTM is not an RTM. I mean that's just basic railroading. We had a lot more coal in the first quarter than we had in the second quarter, and we'll probably -- and then we'll have in the third quarter. So they're not all the same.

另外回答你另一個問題，RTM 不是 RTM 不是 RTM。我的意思是，這就是鐵路營運的基本常識。我們第一季的煤炭比第二季多得多，而我們第三季可能——也會比第二季更多。所以它們並不都一樣。

Yes. I guess is that going to create a little bit of an added headwind here if coal stays weaker, then? Or like, how should we be thinking about the mix impact of the -- where kind of volume fell out of the network?

是的。我想如果煤炭持續疲弱，這會不會在這裡造成額外的逆風？或者說，對於運量從路網中流失的部分，其組合（mix）影響我們應該怎麼思考？

It's only been going on at CSX for the last 10, 15 years. So I mean it shouldn't be a revelation that it's going to have an impact in the third quarter.

這在 CSX 已經發生了過去 10、15 年了。所以我的意思是，第三季會受到影響，這不該是什麼令人意外的事。

Your next question comes from Jason Seidl from Cowen.

下一個問題來自 Cowen 的 Jason Seidl。

Wanted to talk a little bit about peak season and how we should start thinking about it, and what types of conversations you've had with some of your partners out there. And also taking into account that July seems like it's going to be a -- a stronger month than June, which is seasonally a little bit different than historical averages. So would love to hear some commentary around that.

我想談談旺季，以及我們應該如何開始思考旺季，還有你們與一些合作夥伴之間進行了哪些類型的對話。另外也考量到 7 月看起來會——會比 6 月更強，而這在季節性上與歷史平均有些不同。所以很希望聽到你們對此的看法與評論。

Sure, Jason. So typically, we have really 2 peak seasons at CSX. We have the sort of Labor Day, late -- early September, late August, peak season as kids are going back to school, and we're seeing goods coming in from Asia and around the world, getting ready for all the fall activities, Halloween and Thanksgiving and all that kind of stuff. And as people are going out and buying new goods for the back-to-school and all that kind of stuff. So I think, clearly we've seen some good domestic intermodal volumes here over the last couple of weeks, as the inventories have been replenished at some of the retailers. I think it's really wait-and-see. If we see that sort of that bump up here at, call it, around Labor Day. We'll see what happens with back-to-school. We'll see what the -- if the states reopen, how the reopening process is, how the COVID cases are. So it's really, in my view, and our discussions with our customers are, we're cautious. We're watching it, and it's -- I think you heard some of that from one of the channel partners who reported last week. It's a wait-and-see game. So we're there, and we will be there, and we'll have the crews and the locomotives and everything to be able to move that freight when -- if it does come, and we'll see.

當然，Jason。一般來說，CSX 其實有兩個旺季。一個是勞動節前後，也就是 8 月下旬到 9 月上旬的旺季，孩子們準備返校，我們看到來自亞洲及世界各地的商品進口，為秋季活動、萬聖節、感恩節等等做準備。同時，人們也會外出採買返校用品之類的商品。所以我認為，很明顯地，過去幾週我們看到國內聯運（intermodal）量表現不錯，因為部分零售商已補回庫存。我認為這真的還是要觀望。看看在勞動節前後是否會出現那一波增量。我們會看看返校季的情況。我們也會看各州是否重啟、重啟流程如何、COVID 病例如何。所以在我看來，以及我們與客戶的討論是，我們保持謹慎。我們在觀察，而且——我想你也從上週回報的某位通路夥伴那裡聽到一些類似的說法。這是一場觀望的遊戲。所以我們已就位，也會持續就位；我們會備妥人員、機車以及一切所需，以便在——如果貨量真的來了——能夠運送這些貨物，我們再看看情況。

So then the other sort of traditional peak that we see is really around Thanksgiving, more of the e-commerce peak, as people prepare for Christmas and order goods online. Again, I think we'll probably see a peak. I think the peak may -- again, depending on whether people are back at work, whether people are -- the status of -- are the shopping malls open, are people comfortable going to the shopping mall. If the COVID cases are still sort of concerning and people are cautious about venturing out, then I think you may see that e-commerce type of peak a little bit sooner, as people stay home and sort of order stuff on the web. So we'll see what happens. But again, as we've said many times, all this is really a wait-and-see period here for us as we move into the back half of the year.

另外一個我們傳統上看到的旺季，主要是在感恩節前後，更偏向電商旺季，因為人們為聖誕節做準備並在線上訂購商品。同樣地，我想我們大概還是會看到一個旺季。我認為旺季可能——同樣取決於人們是否回到工作崗位、人們的狀態——購物中心是否開放、人們是否願意去購物中心。如果 COVID 病例仍然令人擔憂、大家對外出仍很謹慎，那我認為你可能會更早看到那種電商型旺季，因為人們待在家裡，改在網路上下單。所以我們就看看會怎麼發展。但同樣地，正如我們多次提到的，當我們進入下半年時，對我們而言這一切都仍處於觀望期。

I think that e-commerce peak has been happening since almost April, at least in the Seidl household, for sure.

我覺得電商旺季幾乎從四月就開始了，至少在 Seidl 家裡肯定是這樣。

We have seen some good volumes on the e-commerce business. I mean, clearly, people are not venturing out and they're at home and they're ordering toilet paper and other things on the web. So our e-commerce peak is -- our volumes have been pretty strong in that area.

我們在電商業務上確實看到一些不錯的量。我的意思是，很明顯，人們不太外出，待在家裡，會在網路上訂購衛生紙和其他東西。所以我們的電商旺季——我們在那個領域的量一直相當強勁。

Okay. Well, I'll keep our fingers crossed for the outlook for after Labor Day then. Gentlemen, I appreciate the time.

好的。那我就為勞動節之後的展望祈禱一下。各位先生，感謝你們撥冗。

Your next question comes from Ben Hartford from Baird.

下一個問題來自 Baird 的 Ben Hartford。

Jamie, just wanted to get your quick take or clarify some comments made earlier about the safety performance. I think Jim had said that it was largely a function of lower volumes, which makes sense in terms of the uptick in kind of the index, whether it's the personal injury rate or train accident rate. But you're obviously undertaking some safety engagement initiatives as well. So what -- should we look at that as almost exclusively a function of lower volumes, and so we're seeing incidents pop up on a per unit basis as a result of that? Or do you think that there was some slippage in safety performance on an absolute basis, whether it was from service or some other factors that's leading to some of these initiatives that we're seeing in the third quarter?

Jamie，我想快速請教或釐清一下先前關於安全表現的評論。我記得 Jim 說這主要是因為運量較低所致，這在指標上升方面是合理的，不論是人身傷害率或列車事故率。但你們顯然也在推動一些安全參與（engagement）倡議。所以我們是否應該把這幾乎完全視為運量較低的結果，因此在每單位基礎上事件看起來增加？還是你認為在絕對值上安全表現確實有些下滑，可能是服務或其他因素造成，才導致我們在第三季看到這些倡議？

Really, I think what Jim was mentioning, more than anything, was -- these are ratios, right? So if I take a look at the incidents that occurred, they are decreased, okay? There's less injuries, there's less accidents, but it's based off of a per mile and/or per hour worked. So as we had 1,000-plus employees -- really almost 1,300, 1,400 employees at one point -- furloughed, those hours disappear. So it creates a bit of a headwind when you take a look at how we do our FRA ratios.

我認為 Jim 提到的重點，最主要是——這些是比率，對吧？所以如果我看發生的事件數，其實是下降的，好嗎？受傷更少、事故更少，但這是以每英里和／或每工時為基礎計算。因此，當我們有 1,000 多名員工——某個時間點其實接近 1,300、1,400 名員工——被暫時解雇（furlough）時，那些工時就消失了。所以當你看我們如何計算 FRA 比率時，就會形成一些逆風。

And on the injury side, we were at 0.86, which is still top line in the industry versus 0.81 in 2019. And on the accident side, we were at 2.19 this year versus a 2.47. So we did see an improvement on the accident side. It's the injury hours that are different. But I mean, look, with that said, heading into the future, I think every railroad has got a little bit of a headwind with respect to engineers who went on the ground to work as conductors because they have seniority flowback rights. So they're doing jobs that they weren't used to doing. Retraining was something that we weren't able to do in most circumstances, because of social distancing. So we were doing the best we could to provide distance training and/or working with the employees to ensure that they're -- obviously were qualified, they were just doing jobs that they hadn't done for a number of years. So I think that's a headwind that we'll probably see across the entire industry. But absolutely, this past quarter, the man-hours that were removed from the furloughs is what would have affected our ratio.

在受傷方面，我們是 0.86，相較 2019 年的 0.81，仍然是業界頂尖水準。在事故方面，今年是 2.19，相較之下是 2.47。所以我們在事故方面確實有改善。不同的是受傷的工時基礎。不過我的意思是，話說回來，展望未來，我認為每家鐵路公司在工程師回到地面改做列車長工作這件事上，都會有些逆風，因為他們有依資歷回流（seniority flowback）權利。所以他們在做一些不太習慣的工作。而在多數情況下，因為社交距離限制，我們無法進行再訓練。因此我們盡力提供遠距訓練，和／或與員工合作，確保他們——當然是合格的，只是他們在做一些多年未做的工作。所以我認為這種逆風可能會在整個產業都看得到。但確實，在上一季，因暫時解雇而減少的人力工時，才是影響我們比率的原因。

There are no further questions at this time. I will turn the call back over to the presenters.

目前沒有其他問題。我將把電話會議交回給簡報人員。

All right. Well, great. Thank you so much for spending your -- some time with us this afternoon, and we look forward to seeing you all in the near future. And be safe.

好的。那太好了。非常感謝各位今天下午撥出一些時間與我們交流，我們期待在不久的將來再與各位見面。也請注意安全。

This concludes today's teleconference. Thank you for your participation in today's call. You may now disconnect your lines.

今天的電話會議到此結束。感謝各位參與今天的會議。您現在可以掛斷電話線。