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!
This article brought to you courtesy of NEXT Trucking Intermodal and drayage carriers are seeing a drop in demand about midway through the second quarter. The U.S.-China trade war gets most of the blame, but it might be more complicated than that. After 2018’s rush to get containerized goods off of U.S. ports and into […]
John Larkin, arguably the father of all transport analysts and recently an investment banker, is leaving banking to join a small private equity firm
The three stocks get an upgrade not just on Cowen’s optimistic view of the market, but by how much their prices have been hit.
FreightWaves SONAR now features railroad-related data from Commtrex. The article provides insight about the Commtrex, the data it will provide to SONAR and how SONAR users will benefit from it.
“The economy feels pretty good right now,” GWR chief executive Jack Hellmann said at an investor conference on May 14.
U.S. President Donald Trump is pushing ahead on the successor of NAFTA following the end of tariffs on Canadian and Mexican metals.
Market expert Jim Blaze explains the economics behind railcars. He also provides information about the various types of railcars and what market conditions the railroads are facing as they seek to “right-size” their fleets.
At least 35 groups will be testifying before the Surface Transportation Board this week to provide their perspective on how the Class I railroads assess demurrage and accessorial charges. The charges have become controversial because some shippers say the changes that the Class I railroads have made in administering the charges are unfair.
Saudi Arabia Customs successfully transported a container to the Port of Rotterdam using blockchain for the packing list and commercial documents.
A Trinity Industries subsidiary has bought 230 acres in Iowa to construct a multi-million-dollar railcar maintenance facility. The facility’s location in Butler County will give Trinity access to the Class I railroad network and the upper Midwest, Trinity said.
The state of Georgia plans a $35 million sale of bonds to upgrade its rail network, a move that could help boost volumes for Genesee & Wyoming (NYSE: GWR) and other short-line operators in the state. The State Transportation Board approved the sale at a May 16 meeting. Georgia’s Department of Transportation (DOT) hopes to […]
For years, shippers have tapped spare capacity of railcars and tracks as a low-cost option for storing and staging bulk commodities. But the widespread adoption of the business model known as “precision scheduled railroading” means the big U.S. railroads want to be in the moving business, not the storage business. And that poses a problem […]
Nevada joins Colorado in requiring freight trains to have at least two crew members on board. Meanwhile, preliminary data from the Surface Transportation Board shows April rail headcount level to be the lowest so far in 2019 and since January 2017.
Rail congestion in regions such as Chicago and Houston may have eased for now, but the railroads will still need to find ways to increase capacity at those busy city locations as the U.S. population grows, Class I railroad executives said at an investor conference this week.
Executives with eastern railroads CSX and Norfolk Southern expressed confidence this week that they can compete alongside trucks for e-commerce business.
Canadian rail volumes rose again year-to-date for the week ended May 11, while U.S. rail volumes continued downward amid U.S. tariff uncertainty and a fuzzy economic picture.
Rail market expert Jim Blaze discusses how FreightWaves SONAR can help determine how best to ship freight.
Amazon has broken ground on its Kentucky air hub, which will bring 2,000 jobs and up to 100 planes to the area.
FreightWaves market expert Jim Blaze looks at a regulatory spat between Canadian National Railway and Canadian Pacific Railway over the concept of “open access.” Learn why that is important to all railroads – and shippers!
Good day, Truck makers have been insisting that medium-duty truck owners are starting to look for the same type of data analytics and remote diagnostic capabilities that long-haul operators have become accustomed to in recent years. Kenworth is the latest manufacturer to heed that call, announcing that its TruckTech+ Remote Diagnostics is now an option […]
Forward Air names Chris Ruble COO, Matthew Jewell chief commercial officer
A number of rail equipment lessors and manufacturers have been merging and consolidating in recent months as a way to leverage themselves against marketplace changes brought about by precision scheduled railroading. Meanwhile, industry observers are watching whether railcar utilization grow in 2019.
Australian integrated logistics provider Qube (ASX:QUB) has acquired Brisbane-based crane-hire provider, mining-related logistics services provider and truck-operator LCR Group for A$135 million (US$94.14 million).
Big data and shifting consumer preferences will revolutionize freight transportation, according to Association of American Railroads panel.
Market expert Jim Blaze compares and contrasts Amtrak and America’s freight railroads.
Beijing has sworn to institute countermeasures to combat a huge increase in tariffs, from 15 percent to 25 percent, that have been imposed by Washington on $200 billion worth of a wide range of Chinese goods. A set of high-level, last-minute, talks yesterday to postpone or prevent the tariffs failed.
A Canadian National (NYSE: CNI) subsidiary has acquired the intermodal assets of Alberta-based H&R Transport, a company that specializes in the over-the-road, temperature-controlled service. The acquisition will expand CN’s presence in moving consumer goods, and is part of the company’s broader effort to offer more end-to-end rail supply chain options, according to railroad president and […]
Canadian Pacific (NYSE: CP) and Canadian National (NYSE: CNI) both moved record volumes of grain in April, following a harsh winter that sometimes curtailed rail shipments. Canadian National said on May 8 that it moved an all-time record 2.72 million metric tonnes in April, compared to a three-year average of 2.23 million metric tonnes. Canadian […]
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.”
The Greenbrier Companies (NYSE: GBX) is planning to buy the manufacturing arm of American Railcar Industries as a way to increase its North American presence.
Market expert Jim Blaze looks at how rail freight volume has changed over the years and what the outlook is for the next decade. Learn what he thinks will happen to the railroad industry in its long-term competition with trucking to carry freight.
Add Ohio and Washington state to the list of states where leaders are debating whether to require freight railroads to have at least two crew members per train. Ohio and Washington state legislators have introduced bills this spring mandating a minimum crew size for freight trains. Washington state’s bill takes the debate one step further by also defining how many crew members should be operating a train that’s carrying crude oil.
Changing distribution patterns could spell trouble for intermodal, report says.
Union Pacific’s (NYSE: UNP) first quarter net profit rose 6 percent amid company efforts to rationalize or reorganize existing assets to streamline operations under precision scheduled railroading (PSR).
Higher coal and chemicals volumes drove U.S. carloads upward on a weekly basis for the first time since late February, according to the latest data from the Association of American Railroads (AAR). But despite that weekly gain for U.S. carloads, overall U.S. rail traffic still softened.
Kansas City Southern (NYSE: KSU) said its first quarter 2019 net profits rose nearly 16 percent amid its ongoing transition to precision scheduled railroading (PSR).
Canadian National (NYSE: CNI) plans to appeal a determination by a federal regulator that the railway breached rail service obligations last fall at the congestion-prone Port of Vancouver.
CSX (NYSE: CSX) achieved an operating ratio of less than 60 percent in the first quarter amid continued efforts to employ precision scheduled railroading (PSR) throughout its network.
Market expert Jim Blaze questions the benefits to-date of precision scheduled railroading (PSR). Read his views on how railroads could prove PSR’s value to shippers.
The U.S. Department of Agriculture (USDA) lowered its export projections for corn and wheat in the 2018-2019 harvest season amid slumping grain volumes and Midwest rail operations coping from last month’s record flooding.
President Trump’s executive order would create new transportation option for capacity-constrained LNG markets.
With almost all of the Class I railroads transitioning to precision scheduling railroading (PSR), an operational model that emphasizes running railcars on a fixed schedule, a question surfacing within the rail industry is how much emphasis should the railroads place on lower operating ratio.
Year-to-date rail volumes for every commodity except petroleum and petroleum products slumped last week in the United States, according to the Association of American Railroads.
Precision scheduled railroading (PSR) can’t succeed if the Class I railroads aren’t able to fold the shortline railroads into the new operating model, according to one of the early developers of the precision railroading model.
Chemical hazmat shipments figure prominently on newly created committee within U.S. Transportation Security Administration.
Precision scheduled railroading (PSR) is the latest tactic railroads are using to improve their operations – and their images. Market voice Jim Blaze explores whether PSR is real or just marketing hype…
Canadian National (NYSE: CNI) yesterday unveiled plans to invest US$505 million in capital projects along its U.S. corridor spanning from Wisconsin to Louisiana.
The Surface Transportation Board wants to hear from shippers and the Class I railroads on whether the railroads should supply more rail performance data to the board.
Norfolk Southern’s (NYSE: NSC) chief marketing officer sought to assuage shippers’ concerns at a rail shippers’ conference on April 5, saying his company would engage with shippers and seek opportunities to grow capacity as NSC transitions to the precision scheduled railroading (PSR) operating model.
Lobbying group considering more legislation and White House action to stop threat to U.S. rail system.
Trump now threatening tariffs against Mexico while trade groups claim cross-border supply chains still at risk.
Precision scheduled railroading (PSR) could benefit customers and shippers, but its deployment pace and how shippers respond to changes will be key to its success, panelists said today at the North East Association of Rail Shippers conference in Baltimore, Maryland.
U.S. rail volumes fell again last week as rail service issues continue to plague the post-flooding Midwestern landscape.
Canadian National (NYSE: CNI) laid out plans to invest C$615 million this year in network infrastructure in eastern Canada amid wider efforts by stakeholders to revamp Canada’s transportation infrastructure and support the nation’s export markets.
U.S. and European freight railroads are very different in many respects. Market analyst Jim Blaze gives insights about how the two systems differ.
The Canadian Transportation Agency (CTA) is seeking public comments on amendments to regulations that govern the rail rates that Canadian National and Canadian Pacific set for hauling grain in western Canada.
Auto sales are declining, but the National Automobile Dealers Association still expects strong sales for 2019, plus the one area where Amazon is losing and opposition to Canada’s carbon tax grows.
Union Pacific (NYSE: UNP) confirmed that it is slowing down its pace of construction at the multi-million dollar Brazos classification yard in Robertson County, Texas. This comes amid UNP’s plans to implement precision scheduled railroading and modify its operating plan to minimize railcar classification events.
Precision scheduled railroading and positive train control can help railroads improve service, safety and profits. Learn how in Jim Blaze’s piece.
U.S. rail volumes are poised to be lower in the first quarter compared with last year, but whether that decline indicates a looming recession remains to be seen.
A Mexican government agency says Kansas City Southern (NYSE: KSU) and two other national rail lines have the opportunity to fix rail rates on certain routes serving much of the country’s industrial production.
The debate over how many crew members should operate a freight train is back in the spotlight again as federal and state officials push to mandate crew size for the freight railroads.
Canadian National (CNR) finalized its acquisition of trucking and transportation provider TransX, months after announcing plans to purchase the company.
BNSF (NYSE: BRK) and Union Pacific (NYSE: UNP) are grappling with the aftermath of the recent historic floods, with both companies scrambling to assess and repair damage as quickly as possible.
Heavy snow melt and rains have caused historic flooding in 16 states and the FMCSA has lifted certain regulations as a result.
The request by the Association of American Railroads (AAR) asking the Surface Transportation Board (STB) to include a cost-benefit analysis into its rulemaking process is being viewed by some as a positive step towards aligning STB procedure with other U.S. Department of Transportation (DOT) agencies.
Trump’s budget bodes well for certain freight grants but Democrats take issue with reliance on the private sector.
Volvo has started testing connected vehicle technology in California, plus Michigan governor pitches fuel tax hike, California legislator wants to phase out diesel engines and Alibaba buys into delivery company.
Protecting market share is part of the battle over longer trucks.
Lawmakers heard how costly fees and equipment shortages along the supply chain are hurting exports.
Amtrak wants to cut long distance trains for those that travel between heavily populated city pairs. But that plan doesn’t track with what Congress and the freight railroads want.
UPS has sued a pot delivery company in California saying the company is infringing on hits trademarks; also FreightWaves announces a War on Detention, Connecticut wants to add tolls, and Ford leaves South America.
Class 1 railroad plans ongoing projects at intermodal facility which is near major shippers and new warehouse space.
Congress is handing out $93 million in federal grants for improvements at the nation’s top 15 container ports.
Positive Train Control isn’t just about safety anymore as the railroads revisit how the technology can generate capacity and save money.
Rails may need to raise rates to comply with new rules from Washington.
Rise in expansion and efficiency projects comes after strong year of growth in company’s intermodal business.
Never-ending peak season may finally be peaking as shippers rush in goods; shipowners tallying up the cost of scrubbers.
NS invokes precision scheduled railroading as its seeks to match peer performance and lower its operating ratio.
Australian Stock Exchange listed bulk rail freight operator Aurizon reported decreases in top-line revenue, earnings before interest, tax and depreciation, and a big decline in net profit after tax on February 11, 2019.
Railroads – like trucking – will be focusing on solving the Highway Trust Fund problem this year. But could a Green New Deal become a competitive selling point?
