The River Subdivision of CSX Transportation Rail Line near Saugerties, New York. Photo: Getty Images

Railroad traffic and freight volume shipments are dropping below levels seen around this same time in 2016, 2017 and 2018, data from the Association of American Railroads shows.

Why it matters: An efficiency strategy called precision scheduled railroading (PSR) could be North American railroads' "last hope for continued profit growth," Barron's magazine reports — amid concerns of global economic slowdowns, a trade war and recession across the U.S., particularly in Michigan, Hawaii, Montana, Maryland and Louisiana.

  • PSR "uses departure schedules and point-to-point delivery methods to achieve low operating rations and consolidate railroad networks," according to breakthroughfuel.com.
  • In July, rail transportation and real estate company CSX "reported a drop in its last quarter's revenue and warned of a decline in the year's freight volumes," writes Barron's — but CSX shares have recovered nearly half of the 20% they lost following the company's warning.

The bottom line, per Barron's: "If the magic of precision scheduled railroading has only a few more percentage points of operating profit to deliver to railroads like Union Pacific, then profit growth will have to come from increased shipping volumes and price increases. And those growth drivers are not moving in the right direction."

Go deeper: The decline of American coal is taking a toll on the railroad industry

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1 hour ago - World

U.S. policy shift will allow taxpayer funding for projects in West Bank settlements

Friedman (L) with Netanyahu. Photo: Menahem Kahana/AFP via Getty Images

The U.S. and Israel will announce tomorrow that they are expanding three agreements on scientific cooperation to include Israeli settlements in the West Bank, Israeli and U.S. officials tell me.

Why it matters: This is a substantial policy shift for the U.S., which did not previously allow its taxpayers' money to be spent in the Israeli settlements.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

McConnell: Confirming Amy Coney Barrett will help GOP retain Senate

Photo: Samuel Corum/Getty Images

Senate Majority Leader Mitch McConnell (R-Ky.) expressed no regrets about Judge Amy Coney Barrett's controversial confirmation, telling Politico in an interview that he believes the decision to place her on the Supreme Court just a week before the election will help Republicans retain the Senate.

Why it matters: With a week to go until Election Day, many Republicans are concerned that President Trump's unpopularity could cost them the Senate. McConnell has long viewed the transformation of the federal judiciary through the confirmation of young conservative judges as his defining legacy.