Posted on 04/12/2010 6:15:42 AM PDT by blam
U.S. Rail Traffic Hits A Speed Bump
Vincent Fernando, CFA
Apr. 12, 2010, 12:23 AM
U.S. rail traffic just slipped, with year over year growth slowing. Weaker traffic in coal, grain, construction materials, vehicles, and metal products were to blame.
Journal of Commerce:
For just the largest U.S.-owned railroads, new intermodal shipments fell to 196,257 loads last week from 210,914 a week earlier and were the lowest since Feb. 13.
Rail freight traffic has maintained most of its recent strength, especially in carloads of bulk materials and equipment. Yet carloadings also slowed some for the North American majors, to 372,270 units in the April 3 week from 383,109 in the week ending March 27. The latest carloads are the lowest since Feb. 20.
Despite the sequential declines, traffic remains well ahead of last year. Total North American carloads last week were up 11.2 percent from the same week of the 2009 recession year, while intermodal was up 6 percent. But the latest intermodal volume fell behind its year-to-date growth pace, while carloads continued to increase their year-to-year gains.
Perhaps this is an example of the kind of slowing rebound we'll see from the U.S. as we progress through Q2.
(Excerpt) Read more at businessinsider.com ...
Our recovery is not doing well if rail traffic is not rebounding.
AAR Reports Sharp Traffic Gains on U.S. Railroads for Most Recent Week.
The major North American railroads (BNSF,UP,CN,CPRS,CSXT,NS) all have about 1/3 of their flatcars(used for carring lumber) sitting empty on sidings all over the country.
When housing starts go from 2 million in 2004 to 600k in 2009 you do not need as much lumber, plywood ,osb , drywall , etc. Therefore, you do not need as much equipment to transport them.
However, business has picked up dramatically from last fall. Dealers had record low inventories. We are now dealing with a shortage of supply in available TRUCKS. Many truckers have gone out of business in the last few years. Plus diesel is now $3.10-$3.70/ gallon again. There are not enough trucks available for the increase in business. It is going to get worse as we get into produce season. This causes prices of all items shipped on trucks to go up.
Our recovery is not doing well if rail traffic is not rebounding.
Freight rail is down, but passenger rail is UP!!!
Amtrak seeing increase in riders across the board
We need to build more high-speed rail and Maglev so our commuter passenger infrastructure can be competitive in the 21st Century.
The free market is the best way to determine if there is a real need for high speed rail.
The free market is the best way to determine if there is a real need for high speed rail.
I agree!
So let's build the high-speed rail infrastructure and give commuters a free market choice!!!
As long as private investors are "on board" with this idea, they will get built. If not, and gov't builds the infrastructure, it will be just more of "Other People's Money" flushed down the toilet.
That's not what Willie and his ilk want to hear.
You pay for the high speed rail out of your own pocket, then it’s a free market choice - to have subsidy pay for the development is nowhere NEAR “free market”.
Yeah, I know. Willie has been around for 12 years, he is often times astute, so I need to show some respect. However, he should know better. I guess his memory is failing in his old age.
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