Railroad

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.’

In the wake of Hurricane Barry, Brian Aoaeh writes about the disruption to supply chains that hurricanes and flooding can do. In particular, the state of Louisiana and its ports are critical to the U.S. agriculture and energy industries.

Jim Blaze writes about earnings season for the railroads, and what investors, customers and employees should be looking and asking for in the railroads’ quarterly earnings reports.

While operational efficiencies get the credit for a freight railroad’s improved operating ratio, other factors, such as changes in fuel prices and increases in freight rates, play significant roles according to a research paper by a law firm representing shippers in Canada.

The Port of New Orleans has reopened after Tropical Storm Barry swept through the region, although officials still stress dangerous flooding conditions for area residents.

Hurricane Barry made landfall in Louisiana on July 13, and as it did, it caused disruption to travel and cargo movement in the region.

Bascome Majors says contract rates will be under downward pressure for the rest of the year, but spot rates may have already turned up.

Union Pacific’s (NYSE: UNP) intermodal rail service saw average speeds sink to a two-year low in the second quarter, with shippers and intermodal marketing companies reporting extensive delays in getting their freight from the railroad. The service hit came during an overall lull for West Coast container imports. And many of the delays were due […]

An end to growth-stopping financial penalties on the Port of Newcastle is definitely not on the agenda after the NSW state government re-committed to its existing policy to keep the port in a crippled state.

As the Class I railroads begin reporting their second quarter earnings results next week, some members of the Wall Street community expect the lower rail volumes from the second quarter to affect the railroads’ financial results.

Although volumes are down across modes, rails don’t need top-line growth to improve cash flows.

Every installed scrubber will be one less ship competing with existing buyers of diesel in the post-IMO2020 world.

Year-to-date U.S. rail volumes fell yet again this week, although improving economic indicators signal that rail volumes could moderate in the weeks and months ahead.

Although the U.S. Senate Commerce Committee has voted in favor of the nomination of an additional board member to the Surface Transportation Board (STB), whether and when she will be installed remains to be seen.

Brian Aoaeh writes about changes that need to be made to the food supply chain to deter food waste and food loss.

“Without documented strategies for how it plans to communicate the results of its research, FRA may lose an opportunity to effectively work with internal and external stakeholders – such as railroads, rail workers and local communities – to address any risks of operating longer trains in support of the agency’s mission of enabling the safe, efficient and reliable transportation of people and goods.”

Atlas Air has won an injunction ordering pilots that have been staging sickouts and delays to stop the practice.

Maersk’s (Nasdaq OMX: MAER) fight to bring automation to its largest North American marine terminal is getting support from shippers and non-ocean carriers concerned about the impact on the environment and the precedent of government overreach into the future of freight. The world’s biggest shipping line faces a do-over as the Los Angeles Board of […]

Jim Blaze writes about railroad movement of scrap – the market today and the future of the market.

This morning (July 8) Morgan Stanley’s transports equities analysts cut their 12-month price targets for most of the companies they cover, but said that following the release of second quarter earnings it may be time to invest in the cyclical stocks again. The analyst team, led by Ravi Shanker, expects second quarter results for transportation […]

Ben Thrower profiles Virgin Trains USA’s plans for private passenger service in Florida, Nevada and California. Richard Branson changed air travel; will he be able to do the same thing with passenger train service in the USA?

FreightWaves’ Freight Intel Group has released a new study of the impact of IMO 2020 on the U.S. trucking industries (and other industries). Read what may happen to diesel fuel prices.

The service problems associated with precision scheduled railroading (PSR) have motivated forest products and scrap recycling shippers to press the Surface Transportation Board to renew a longstanding request for regulatory oversight.

Rail volumes were off again for the week ending June 29, 2019 with U.S. railroads reporting a 5.5 percent decline.

Rail union workers are at odds with other members of the freight rail industry over how cross-border rail operations are run at Laredo, Texas.

Gemini Shippers Group, a non-profit shippers association that is nearly 100 years old, has joined the Blockchain in Transport Alliance (BiTA). Read about Gemini and why it has joined BiTA.

Blocking railroad crossings in Oklahoma now could come at a financial cost for freight railroads.

In the longer-term, rail industry observers are waiting to see how and whether Genesee & Wyoming will be able to make the capital investments needed to maintain its infrastructure.

Canadian National announced record western Canadian grain shipments and a C$210 million investment to support exports.

Brian Aoaeh has written a thought-provoking commentary on the impact of climate change on supply chains, and what governments, companies and startups can do to mitigate supply chain disruptions.

Barge grain movements on Mississippi 85 percent lower than a year ago

FreightWaves, the leading source of news, data and insights for the freight markets, has acquired American Shipper, a leading news publication serving the global shipper community.

Jim Blaze writes about the movement of grain by rail. This is a huge business for U.S. and Canadian railroads, and is also critical to the export market of the two countries.

China has developed a prototype magnetic levitation train that can travel at a maximum speed of 373 mph, and is expected to go into production by 2021.

Top transportation economist Paul Bingham goes in-depth on trade war freight consequences, both pro and con.

Some members of Congress remain determined to address the question of whether having more crew members on a train makes that train safer.

Generic corn and wheat futures are up nearly 30% since May 10 on depressed yields and constrained transportation in the Midwest.

The Port of Brownsville recently received a key permit from the U.S. Army Corps of Engineers to deepen the 17-mile Brownsville Ship Channel. Dredging on the $350 million project could start in 2020. The U.S. Army Corps of Engineers (Corps) permit issued June 6 is the latest step in the port’s effort to deepen the […]

Year-to-date U.S. rail volumes fell again amid a loosening truck market, receding floodwaters in the Midwest and overall economic uncertainty.

Intermodal giant sees rail and truck as better than option than truckload into

An additional $300 billion in proposed U.S. tariffs against China could result in lower railroad freight volume , but economic uncertainty and competition from trucks appear so far to be bigger threats for rail volumes.

Amendment would hinder LNG export plans by New Fortress Energy

UPS is hosting workshops to help women-owned small businesses gain access to global export markets.

Market expert Jim Blaze writes about the railroads’ transportation of fracking sand, as well as stone and gravel, aggregates and phosphates.

Should the Class I railroads see U.S. rail volumes sustainably increase, furloughed workers could be called back to meet network capacity needs, resulting in a bump up of headcount levels. But another factor that could affect headcount levels in the long-term is the deployment of automation technologies.

There are an enormous number of price relationships that will ultimately determine the supply and demand of fuels compliant with IMO2020.

The implementation of precision scheduled railroading has contributed to dwindling morale and could result in creating unsafe working conditions should the federal government withhold intervention, according to union witnesses at a June 20th Congressional hearing on rail safety.

The Trump administration is considering levying tariffs on the remaining $300 billion of Chinese exports to the United States so far unaffected by duties. Freight Intel, FreightWaves’ proprietary research group, has just published a study warning that such a move would disrupt trade flows far beyond what has occurred so far. Freight Intel Group research […]

Mexico became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) when its Senate approved it by a vote of 114 in favor to 4 against on June 19. Mexican President Andres Manuel Lopez Obrador described the ratification as “very good news.” “We celebrate the approval in the Senate of the [USMCA], to maintain […]

Autonomous trains might be fully running in remote Australia, but it will take awhile before those kinds of trains will be rolling down the North American countryside.

The Port Authority of New York and New Jersey said this week that it is ready to be the second largest port in the U.S., thanks to the completion of the ExpressRail Port Jersey facility at the GCT Bayonne marine terminal. The Port Authority said in a none-too-subtle way that it “bolstered its already lofty […]

The FreightWaves Freight Intel Group is producing research culled from FreightWaves SONAR and other sources. Read about its first several research papers and how to learn more.

U.S. rail volumes trended downward again for the week ending June 15, with weekly volumes falling over 5 percent and year-to-date volumes declining nearly 3 percent, according to the latest data from the Association of American Railroads.

Historic flooding in the Midwest and poor demand from electric utilities are stranding coal hoppers west of the Mississippi, pushing up prices for storing railcars. The American Association of Railroads said last week that weekly coal volumes were down 16 percent from a year earlier to 71,526. The week prior number of 70,737 railcars marked […]

The US logistics industry is making strides in overcoming macro volatility by a focus on IT improvements and shipper-carrier relationships

North Dakota’s lawmakers are fighting Washington state’s new crude-by-rail law, saying it could curtail shipments of state-produced Bakken crude oil.

Market expert Jim Blaze writes about the movement of coal by rail. He explores the history of rail-coal; more importantly, he writes about what the future may hold for coal in the U.S. and how that will impact the railroads.

Trans-border freight totaled $107.2 billion in March, with trucks moving 63 percent of all freight by value with United States trading partners Canada and Mexico, according to data released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). Trucks carried $67.4 billion of United States freight in March 2019, compared to $66.5 billion […]

New incentives for container shipping could bring more boxes through the canal to the U.S. East Coast.

BP imagines a scenario where a plastics ban crushes demand for petchem feedstocks.

Donald Broughton explains the harm that tariffs can do to the economies of the United States, the country(ies) that tariffs are imposed on and the global economy.

New Fortress Energy wants LNG transport efficiency using tank cars

The Federal Railroad Administration is awarding more than $326 million in grants to help states and localities repair, maintain and build rail infrastructure supporting freight rail and intercity passenger rail.

Flooding impacts, cheap natural gas prices, and trade and economic uncertainty could be factors contributing to a significant slump in weekly U.S. rail volume.

The American Short Line and Regional Railroad Association is urging Congress to pass legislation that would make permanent the tax credit that short lines receive for infrastructure improvements.

Millions of tons of cargo, inducing U.S. grains, remain stuck due to flooding.

Laredo’s historic reign as the top United States trade port was short-lived, as the Port of Los Angeles rebounded from its lowest monthly total in three years, enabling it to once again lay claim to the number 1 ranking among U.S. ports. “In April, imports into the Port of Los Angeles recovered from the worst […]

The transition to e-commerce and anticipated advances in automated trucking are forcing the freight railroads to adapt to supply chains that require railroads to be more responsive and nimble. One way that the railroads are seeking to address this challenge is by hiring executives outside of the railroading community, in the hopes that placing a non-rail executive in a leadership role will help the railroad weather systemic changes within the supply chain.

Railroad market expert Jim Blaze writes about the movement of chemicals by rail and how that sub-set of railroad traffic is profitable and may grow significantly in the near future.

The Surface Transportation Board is considering initiating a more formal review of how it resolves rail rate disputes.

U.S. coal export volumes are down 12.7 percent in the first four months of this year and the outlook looks even worse for 2020.

Market expert Donald Broughton writes about the numerous consequences of a U.S. Mexico trade war and the damage that will be done on both sides of the border.

“It’s just a confusing time for all of us in transportation and anybody in manufacturing or business in general to have a really good sense of why we’re seeing this kind of softness,” said CSX chief executive officer Jim Foote.

Volvo and Mack used trucks are now backed by factory warranties of up to 24 months and 250,000 miles for parts and labor on certain components.

U.S. intermodal volumes fell 5.9 percent in May, while carloads fell 2.1 percent amid economic uneasiness and uncertainties surrounding U.S. trade between Mexico and China.

Market expert Jim Blaze explores what railroads need to do to capture more of the market share of oversize loads, which are essential to the economy and profitable as well.

Trade growth, demography and land use changes in the city of Melbourne, Australia, have made necessary a shift of freight from truck to rail, according to an analysis by Melissa Horne, Victorian Minister for Ports and Freight.

The railway moved 15 million metric tonnes of grain for export through Vancouver in May, breaking the record set in May 2017 by 5 percent, the company said on June 4.

The U.S. Supreme Court declined to hear a case again about whether Amtrak can have a role in crafting the on-time performance metrics and standards for the freight railroads. The Court’s June 3 action paves the way for Amtrak and the Federal Railroad Administration to finish establishing those metrics and standards.

Market expert writes about how current trade issues between the U.S. and China, the U.S. and Mexico and the U.S. and the EU may disrupt supply chains and cause economic problems.

Military members under the age of 21 can now apply for inclusion in an FMCSA pilot program for younger drivers.

Canadian National’s (NYSE: CNI) strategy to build up its eastern network could include even more partnerships with trucking and intermodal partners, the company’s chief executive officer said at an investor conference.

The Port of Savannah aims to boost its market share of freight moving into the U.S. Midwest, saying it offers a cheaper way into the Gateway of the West than the West Coast gateways. To that end, the Georgia Ports Authority (GPA) said on May 31 that it is forming a partnership with the St. […]

e railroad industry is “concerned” about a possible disruption of the North American supply chain should the U.S. impose tariffs on imports from Mexico. But for now, the rail industry is taking a wait-and-see stance.

The supply chain has become a pawn in the battle over immigration, and freight businesses are the ones who will be hurt.

Only 17 percent of the relationships between the U.S. passenger and freight railroads required to utilize positive train control technology have interoperability, meaning that the host railroad can communicate with a non-host train through the technology, according to data released by the Federal Railroad Administration.

U.S. rail volumes tumbled 6.7 percent for the week ending May 25 as slumping intermodal volumes dragged total volumes lower. Softness in the housing and manufacturing sectors could be contributing to lower U.S. rail volumes year-to-date.

Government agency Transport Canada has released a proposed regulation requiring the use of video and voice recorders in locomotive cabs of freight trains operating in Canada.

Eastern U.S. railroad CSX intends to increase the speed of its trains along a route in Alabama to Georgia as part of broader efforts to increase train velocity and improve network fluidity.

Market expert Jim Blaze dissects the recent Surface Transportation Board hearings on demurrage and accessorial charges. Read his observations on the relationships between the railroads and their shipper customers…

Famed artist Syd Mead worked for Volvo Trucks at one point in his career, leaving behind a series of conceptual drawings.

Prologis and Blackstone Group are both trying to acquire the U.S. warehousing portfolio of GLP.

The Federal Railroad Administration is withdrawing its notice of proposed rulemaking for train crew staffing. Regulating train crew staffing is not necessary or appropriate for rail operations to be conducted safely, the agency said.

Union Pacific (NYSE: UNP) announced this week it would lay off almost 200 employees in eastern Oregon as part of a series of cuts the railroad is making in order to boost profits. The bulk of the layoffs are taking place at a railyard in the city of Hermiston. The yard will close. Additional layoffs […]

“The board has the authority to define reasonable practices. If you were in our shoes, what would you do?” said Surface Transportation Board vice chairman Patrick Fuchs to a panel representing BNSF, Canadian National and Canadian Pacific.

Last week the widely reported headline was “Housing Starts Climb Almost 6 Percent in April” yet many in the transportation marketplace openly questioned how that was possible. Whether it is the railroads moving the lumber to build houses or the flatbed carriers moving the lumber and other building materials to build houses, the widely held […]

U.S. rail volumes fell again for the week ended May 18, while Canadian volumes grew, according to the latest data from the Association of American Railroads. The theme of higher U.S. carloads but lower intermodal volumes was also expressed by CSX this week.

Old Dominion has made a commitment to donate up to $250,000 to the American Red Cross Disaster Relief fund.

Regulators frustrated by carriers’ lack of candor in justifying service fees