Class I railroads

Market View commentator Jim Blaze writes about the advantages short line railroads offer to shippers.

Carloads on the railroads remained under water in the first week of the fourth quarter 2019. Intermodal weakness will be in the spotlight as third quarter earnings season approaches.

Heading into earnings season, the railroads clearly have a revenue headwind as carloads declined again in the latest week.

Norfolk Southern announced that Claude Mongeau has been elected as a director. The former Canadian National Railway head may be viewed as an effort to improve PSR initiatives or to explore potential opportunities to partner with other Class I railroads.

The Class I railroads are steadily implementing positive train control, but the railroads overall still have a ways to go before the December 2020 deadline.

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

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.