Railroads continue to play a significant role in North America’s economic infrastructure. According to the U.S. Department of Transportation Federal Railroad Administration, the U.S. rail freight network covers almost 140,000 route miles and is generally considered the largest, safest, and most cost-efficient freight system in the world. In addition, says the FRA, the almost $80 billion rail freight industry creates more than 167,000 jobs across the country.
In essence, rail freight companies charge businesses to carry cargo across their network of rails. Their rates are overseen by the Surface Transportation Board, a federal agency that regulates financial aspects of surface transportation. Major railroads in North America include Union Pacific Railroad, BNSF Railway, CSX, Norfolk Southern, Canadian Pacific Kansas City and Canadian National Railway.
Keep up with the latest news, trends and reports concerning rail freight transport here!
Pricing, procuring and planning ocean and rail freight was for years a dark art practiced by a cabal of freight forwarders and logistics professionals. But the ethos of many transport tech start-ups is making those once opaque tasks more easily accessible. Kontainers Chief Executive Graham Parker said during a panel discussion at Transparency 19 that […]
Union Pacific (NYSE: UNP) announced which intermodal terminals it would close around Chicago, Illinois, weeks after hinting on its first quarter earnings call that it planned to consolidate operations there. The railroad said on May 2 that the changes are a result of its efforts to “simplify” its supply chain along its intermodal network and […]
Berkshire Hathway (NYSE: BRK) chairman and CEO Warren Buffett said he would be willing to consider some form of precision scheduled railroading (PSR) for western U.S. railroad BNSF, although he didn’t say when or even if BNSF would eventually adopt the operating model. ”We are not above copying anything that is successful, and I think […]
The uncertainty over whether and when the U.S. and China will reach a trade agreement this year is creating a cloudy outlook for grain volumes this fall.
“We expect uncertainty to persist in the grain market due to the foreign tariffs,” said Kenny Rocker, Union Pacific (NYSE: UNP) executive vice president for marketing and sales.
April rail volumes fell year-over-year but rose slightly from March 2019, the Association of American Railroads (AAR) said on May 1. But the AAR predicted that improving economic conditions could lead to rail volumes stabilizing or growing in the second half of the year, although some uncertainties still persist.
BNSF (NYSE: BRK) says proposed rules in Oregon would make it harder for the railroad to comply with the common carrier obligation, a federal mandate requiring a railroad to provide transportation to all parties and for all goods, including hazardous materials.
Strong bottom-line offsets some volume sluggishness.
Genesee & Wyoming, Inc. reported adjusted earnings per share of $0.78 for the first quarter of 2019, which were 11 percent better year-over-year, but less than NASDAQ’s consensus estimate of $0.83.
Market expert Jim Blaze looks at an under-appreciated asset of North America’s freight railroads – their real estate holdings. Read Jim’s hypothesis of what the railroads might do with this real estate in the near future.
Rail shippers could gain more leverage in rate disputes should the Surface Transportation Board (STB) proceed with its staff recommendations for how to reform rate review methodologies.
Canadian National Railway Company reported adjusted earnings per share of C$1.17 per share for the first quarter 2019, 17 percent better than the same period a year ago.
Legislation has been approved by the Washington State Legislature that could restrict the movement of crude oil via railroads. The bill is sitting on the desk of Gov. Jay Inslee (D).
U.S. rail traffic dipped again for the week ending April 20, according to data from the Association of American Railroads.
Norfolk Southern (NYSE: NSC) expects to have the next stage of its new operating plan in place by the end of July. In this next stage, which Norfolk Southern dubs “TOP 21,” the railroad will seek to run heavier trains and have them run faster along some routes.
Despite its takeover by ocean carrier, Swiss freight forwarder keeping it multi-modal with introduction of rail service from China to Europe.
Despite higher operating income, Trinity Industries’ (NYSE: TRN) first quarter 2019 net profit fell 24 percent to $30.6 million from $40.2 million in the first quarter of 2018. TRN consists of three business segments: a rail group that includes the manufacturing of rail parts and tanks; a leasing group; and a highway products and logistics service.
GATX’s (NYSE: GATX) first quarter profit fell 46 percent to $41.5 million, or $1.12 per diluted share, from $76.3 million, or $1.98 per diluted share, in the first quarter of 2018. Chicago-based GATX is a railcar lessor, providing railcars and boxcars to freight railroads and shippers.
The company posted an operating ratio (OR) of 66 percent, improving on its fourth quarter 2018 OR of 67.8 percent and setting a first quarter record.
The number of employees working for the U.S. operations of the Class I railroads rose by nearly 1 percent in the first quarter of 2019 compared with the same period last year, according to data collected by the Surface Transportation Board.
“This past winter was one of the most challenging in my railroading career,” Canadian Pacific (NYSE: CP) president and chief executive officer Keith Creel said. “I applaud our employees for their resiliency in overcoming loss and pushing through extraordinary conditions and challenges throughout February and March. Our commitment to precision scheduled railroading [PSR] enabled a strong recovery, and gives us a solid foundation moving forward.”
