Railroad

The line serves communities in western New York and eastern Canada near the St. Lawrence River.

J.B. Hunt imposes peak season intermodal surcharge to recoup costs of returning empties

The new appointments could indicate how the companies are preparing to respond to future market trends.

Year-to-date U.S. rail volumes are still slumping this year, due in part to a competitive truck market for intermodal shipments.

Several intermodal containers on trains running between China to Europe run empty due to lack of exporter demand for capacity.

The acquisition seeks to build upon the company’s rail assets in Ohio and expand its presence into the Port of Cleveland.

Market Voice Jim Blaze writes about rail intermodal and what is happening to this area of the railroad sector.

It takes a year of advance planning and up to 10 loads to move a single monster turbine.

The railroad contends the Interstate Commerce Commission Termination Act and the Federal Railroad Safety Act preempt Oklahoma’s law.

The summer doldrums were broken violently by an escalation in the U.S.-China trade war and tweets

Trucking stands to gain, rail to lose if project moves forward.

Using data from FreightWaves SONAR, economist Ibrahiim Bayaan writes about the state of the U.S. retail market and what is ahead for this key sector.

Freight tonnage will grow 25.6 percent by the end of the next decade, the American Trucking Associations (ATA) predicts in its annual ATA Freight Transportation Forecast: 2019 to 2030.

The continued slump in U.S. rail volumes is putting pressure on overall North American rail volumes.

The railcar manufacturer and lessor has been tinkering with its designs for railcars to expand their volume capacity while also making them lighter.

Most forecasts have been conservative, but not this one.

Headcount continues to fall at U.S. rail operations as the railroads implement precision scheduled railroading.

Jim Blaze writes about FreightWaves SONAR and how it could be a helpful tool for the freight railroads.

A federal appeals court denies a request by rail shippers to form a class lawsuit, and U.S. Senators press the Surface Transportation Board to take action.

Grain may return with trade growth, but frac sand in structural change.

A new app aims to streamline household moves, plus China shipping empty containers to Europe and air cargo volumes drop again.

Ohio-based container yard/terminal management software system Depot Systems has today been bought by Sydney, Australia-based WiseTech Global (ASX: WTC) for an undisclosed sum.

The Federal Railroad Administration is asking freight and passenger railroads to apply for grants aimed at upgrading infrastructure or enhancing safety.

The July Cass Information Systems Inc. Freight Shipments Index sounded dire warnings for an economic contraction following the eighth consecutive month of negative year-over-year numbers.

Competition from other grain-producing countries weigh on U.S. grain exports – and on U.S. rail volumes for grain.

Year-to-date North American rail volumes fell 2.3 percent last week. But what about for the rest of the year?

The states of Illinois, Nevada and Washington are seeking to push ahead with state laws requiring a train crew size of at least two individuals, despite a federal declaration saying that such laws have been voided.

Volatility appears to be the only certainty for transportation stocks as trade concerns loom. The transportation stocks walked through a less than stellar earnings season, but renewed trade concerns has them bouncing about.

The announcements confirming Canada’s planned investments in rail infrastructure come as the country prepares for a federal election in October.

Multi-modal data and channel checks with freight brokers point to a good setup for peak season.

As railroads cut less profitable routes, shippers should learn as much as possible about railroads plans for future service.

But Japan’s biggest shipping line looks to restart Long Beach service after summer hiatus.

Australian bulk rail freight operator Aurizon (ASX: AZJ), which owns one of the world’s largest coal rail networks, reported a 15 percent decline in full year profits. Statutory earnings before interest and taxation (EBIT) were down by 14 percent and revenues were down 7 percent.

U.S. rail carloads no longer appear to be following the lead of broader economic indicators. Why? Look to concerns about rail service reliability and trade uncertainty as answers.

A short cost-benefit analysis of the mining, recycling and use of iron and steel.

CSX and Canadian National’s partnership to create new intermodal service between Montreal and Toronto and the greater New York City area is a strategy to expand each other’s geographical reach and compete with the long-haul trucking market.

Railcar manufacturer Greenbrier will invest $16 million in an American Railcar Industries facility that produces tank cars.

Chinese tariffs are impacting American agriculture. But declines in exports to other countries are also hurting American agriculture.

U.S. railroad operations loaded 5.5 percent fewer carloads and intermodal units in July, and trade uncertainty could threaten to maintain that downward trend in rail volumes for the remainder of 2019.

The owner of BNSF and the investor behind Uber have more in common than it seems.

Genesee and Wyoming sees second-quarter operating income decline amid lower freight revenues from its Australian and European operations and flat year-over-year revenue from its North American operations.

U.S. Senator Ron Wyden’s (D-Oregon) new bill would require the railroads to supply information on crude volumes to emergency responders, and it would mandate that the railroads share crude-by-rail data annually.

North Asia revenues were down 8.5 percent, but EXPD improved productivity.

Jim Blaze writes about the recent history of intermodal rail service and what may happen in the next few years.

CARB is making $40 million available in the form of vouchers to reduce emissions. Eligible equipment includes everything from rubber-tired gantry cranes, to airport cargo loaders to truck and trailer refrigeration units.

Second quarter revenue for BNSF rose 0.3 percent despite lower volumes for agricultural products, consumer products and industrial products.

“If a shipper can share some of its production forecast information to railroads, railroads can plan better to meet that capacity. Conversely, if railroads can open up and show where their empty railcars are to the shipper so that the shipper has a bit more confidence that the right number of railcars are going to show up, then the shipper can more confidently choose rail.”

A renewed focus on building western gran network capacity helped Canadian Pacific reach all-time records for grain hauls in the 2018-2019 crop year.

The U.S.-China trade war has dropped trade volumes between the two countries to date in 2019. One result – Mexico is now the #1 trade partner of the U.S.

“I think we’re at a critical juncture. Six months from now I think we’ll be able to take a closer pulse to where things are.”

Ben Thrower examines the costs – in money, lost land and lost businesses – of the high-speed rail line in California.

Blackjewel’s bankruptcy reminds the broader industrial sector of the vulnerability of U.S. coal production overall, particularly so for western U.S. coal production.

North American rail volumes are still lower year-over-year, but U.S. carloads recovered somewhat last week.

Canadian Pacific Railway (TSX:CP) (NYSE:CP) has joined the Blockchain in Transport Alliance (BiTA). In joining the Alliance, CP is supporting BiTA’s mission of producing blockchain  standards that allow for interoperability between participants in the global supply chain. Blockchain is an open, extensible platform capable of sharing shipping events, messages and documents across all the actors […]

The Port of Savannah saw container volumes drop from year-earlier levels as the outlook for international trade remains weak. But the fourth largest U.S. port is still seeing some of the best year-to-date growth for imports.  The Georgia Ports Authority (GPA) said June 2019 container volumes were 361,906 twenty-foot equivalent units (TEUs), a 2.4 percent […]

The Class I railroads have reported their second quarter/first-half of 2019 results. Jim Blaze writes about what may happen during the remainder of 2019.

Hub Group believes “soft” intermodal volumes will begin to flatten out and that the 2019 peak shipping season will be similar to that of 2017.

Hub Group sees record earnings despite a “softening demand environment” and “increased truckload and intermodal competition.”

Train products manufacturer and supplier Wabtec lowered its sales guidance for 2019 but kept its projections for how much profit it expects to make from its operations.

Passenger train proposal asks for comment on freight requirements as well.

The record occurred despite extreme weather conditions that stymied rail shipments in February and March, as well as restrictions on Canadian canola exports to China, the railway said.

Greenbrier said the acquisition will enable the company to provide customers not only with direct sales or leasing options but also with after-market services. Customers seeking tank cars and covered hoppers will also benefit from Greenbrier’s expanded geographic footprint as a result of the acquisition.

Furniture-makers may face long slog in adjusting to tariffs on Chinese imports; Autonomous freight trains to be tested

Winchester & Western Railroad is being acquired by OmniTrax in a $105 million deal.

Indiana-based Steel Dynamics Inc. announced it will build a $1.9 billion mill in Sinton, Texas, about 25 miles northwest of the Port of Corpus Christi. The site for the new mill is strategically located for the southwestern United States and Mexican markets, the company said in a statement July 23. Steel Dynamics is one of the […]

Grain shippers say Congress should take a “fresh look” at railroad policy.

Despite uncertain economic conditions, Trinity Industries (NYSE: TRN) expects rail volumes to improve in the second half of the year, based on “healthy” inquiry levels for its railcars, company leaders said during TRN’s second quarter earnings call on July 25.

U.S. rail volumes fell yet again for the week ending July 20, according to data from the Association of American Railroads.

Owners of ships, railcars and trucks face increased risk from environmental regulations, credit rating agency Moody’s said. The value of $265 billion in debt owed by transportation companies may be in for a bumpy ride in the near-term due to the costs of meeting those new rules. But Moody’s said the transition should be manageable.     […]

The Port of Los Angeles is a test bed for the latest in logistics technology, and a target for the threats facing that technology. To stave off those threats, the largest U.S. seaport is seeking bids for a “turn-key” cybersecurity center, “a first-of-its-kind solution that will help to reduce the port-wide risk of a cyber […]

Total company revenue for Trinity Industries (NYSE: TRN) grew 16 percent to $736 million in the second quarter amid revenue gains for its rail product group.

Norfolk Southern (NYSE: NSC) expects continued operational changes will help boost profits and lower operating ratios in the second half of the year.

Low pricing will speed up Europe’s transition from coal to gas, according to Morgan Stanley.

There is some uncertainty for commodities such as grain, lumber, coal and crude, but Canadian National (NYSE: CNI) leaders are “cautiously optimistic” about volumes and how the company might perform in the second half of the year.

Norfolk Southern’s (NYSE: NSC) second quarter net profit rose slightly as the company prepared to launch the next phase in its new precision scheduled railroading (PSR) operating model. Net profit increased 2 percent to $722 million in the second quarter compared with the same period in 2018. Diluted earnings per share were $2.70 in the […]

Schneider wins award for security excellence, while US Xpress honored as carrier of the year by FedEx Ground

The U.S. Surface Transportation Board (STB) is seeking public comments on Brookfield Asset Management’s proposed acquisition of shortline operator Genesee & Wyoming. Broofield announced plans to acquire GWR earlier this month in a deal valued at $8.4 billion.

Canadian National (NYSE: CNI) reported increases in net profit and revenue in the second quarter of 2019, with its acquisition of trucking and transportation provider TransX providing both higher revenue and costs.

U.S. railroads had fewer employees on their payroll in June amid lower rail volumes overall and company decisions to trim workforce levels as part of changes to their operating models.

Maryland Governor Larry Hogan (R) said Maryland has received a $125 million federal grant that the state hopes will lead to an expanded rail tunnel in Baltimore to allow for taller trains to travel to the Port of Baltimore.

Jim Blaze writes about the pros and cons of shippers owning or leasing their own freight railcars to move their products.

Ecommerce continues to grow and Amazon and its competitors continue to innovate and grow. Read insight into the phenomenon by Anothy Smith.

Fenix Marine Services aims to make faster dwell and truck turns the capstone of a nearly two-year project to upgrade the second largest marine terminal in Los Angeles. Fenix is partnering with logistics technology provider Blume Global and artificial intelligence vendor SavantX to develop an expedited terminal service offering for customers retrieving containers. Fenix’s Pier […]

West Virginia may look to sell an intermodal port that it developed, but which has failed to generate the expected level of freight volumes. The state’s Port Authority developed the Heartland Intermodal Gateway, a $30 million project funded by state and federal government grants. Earlier this month, the authority voted to allow the facility to […]

While investing in the North American railcar market is risky right now because the market is so uncertain, Europe and India are among the places where there are “attractive’ opportunities to invest in railcars, officials with railcar lessor GATX said on the company’s second quarter earnings call on July 17.

The railroad said second quarter revenue totaled $714 million, a 5 percent increase from $682 million for the same period in 2018.

APM Terminals reached a deal with the longshore union at the Port of Los Angeles to retrain dock workers in repairing the automated cargo handling equipment that will take their jobs. The deal further paves the way for the Maersk subsidiary to start a project to install electrical charging stations and to make other upgrades […]

“You’ve heard me say this many, many times – we’re not going to use the lack of volume as an excuse not to make aggressive achievements on our productivity,” Union Pacific chief financial officer Rob Knight said.

Heat wave spreading across dozens of states

Union Pacific set an all-time record for its operating ratio in the second quarter despite lower freight volumes and a decline in freight revenue.

The South Carolina Port Authority (SCPA) said ocean container moves were up 9 percent in its fiscal year, setting a volume record for the port.  The Port of Charleston’s two main container terminals, Wando Welch and North Charleston, saw 2.4 million twenty-foot equivalent units (TEU) in container moves last year.  The region’s freight moves represent […]

Sudden surge in marine fuel costs could spur shippers to consider switch to California over Panama Canal route.

North Dakota filed a petition on the afternoon of July 17 asking the federal government to block the state of Washington from enforcing a law that would restrict crude oil-by-rail shipments that pass through that state. Supporters say the law would reduce the risk of explosions and potentially fatal derailments. Opponents say it prevents North […]

The continued decline of U.S. rail volumes was one of the themes mentioned in the second quarter earnings calls for CSX and Canadian Pacific.

Norfolk Southern and Union Pacific are modifying some of the ways they collect demurrage and accessorial charges for some commodities, but some shippers are questioning the modifications.

“The present economic backdrop is one of the most puzzling I have experienced in my career..”

Despite a drop in profit in the second quarter, CSX’s (NYSE: CSX) operating ratio set a company record.

Canadian Pacific’s (NYSE: CP) is willing to cut costs in the second half of 2019 should macroeconomic factors put pressure on demand for rail service.

Canadian Pacific’s (NYSE: CP) second quarter net income rose 66 percent amid a 13 percent increase in company revenue, the railroad reported on July 15. CP’s financials are reported in Canadian dollars, except for earnings per share.

Jordan Alliger rated UPS, FedEx, and J.B. Hunt ‘Buy’; XPO and C.H. Robinson ‘Neutral’; and Expeditors ‘Sell.’