Posted on 01/13/2016 3:22:14 PM PST by Red in Blue PA
CSX Corp. executives said on Wednesday that current pressures on rail cargo volumes are at levels not seen outside a recession.
“You have multiple aspects working against you: the low [natural] gas prices, the low commodity prices, the strength of the dollar,†Chief Executive Michael Ward said during an earnings call with analysts. “Except for markets like automotive and housing related, you’re seeing pressure on most of the markets.â€
(Excerpt) Read more at wsj.com ...
Another Lie told by Dear Leader.
Sounds like automobile sales are a trailing indicator....
Sounds like some good deals will be made in buying railroad stocks this summer.
Or next summer.......
It seemed like things are going to just truck along at a modest pace, but I’m starting to think otherwise. Before, I figured we had fallen so far so fast, we still had a lot of upside to go as we catch up with where we ‘should’ be. It has the feeling of something different all of a sudden.
Buy them this summer and then sell them next summer when President (Trump or Cruz) gets the economy back on track (pun intended).
Baltic Dry Index low may halt oceanic trade:
http://wap.business-standard.com/article/economy-policy/new-low-on-baltic-dry-index-could-bring-indian-ocean-trade-to-a-halt-116011300352_1.html
I have an extended “railfan” family and it is amazing how the bottom has dropped out of the shipping business. Saw yesterday that the big container ships are in port, not sailing. Finally, the Unemployment System is in overload. Buckle up.
How does low NG price work against a railroad? Fewer rail cars of oil to ship? Is oil that big a fraction of their shipments? I could see it with Buffet’s BNSF, perhaps.
Maybe they should convert their locomotive engines to LNG or CNG and take advantage of the low prices. It’s not like they couldn’t pull a separate car of fuel.
Guess who owns CSX and has his office in Omaha?
He owns BNSF, not CSX.
Surely CSX is doing something wrong because the Obamasiah told us in his SOTU address the economy is booming!
He must be a FR denizen!
It drives me nuts not being able to read the source. Someday I’ll subscribe but for now...
“Jack said nothing, because Jack cannot speak. But even a dog would sense the change that has come over the railroad business. The latest traffic numbers show business in a freefall. U.S. rail traffic for the week ending December 26 was down 18 percent from a year ago. Coal loadings fell a staggering 32 percent, petroleum products and metallic ores both 26 percent. Over all, carload traffic was down 18 percent, intermodal up 1 percent, for the week, versus the same week in 2014.
Maybe those numbers are misleading because of the Christmas holidays. So look at the four-week trends, in descending order of calamity: Kansas City Southern, down 1 percent; CSX Transportation, down 6 percent; BNSF Railway and Canadian Pacific, both down 7 percent; Norfolk Southern, down 9 percent, and Canadian National and Union Pacific, both down 10 percent. For all of 2015 except its last week, only BNSF has held its own versus those 51 weeks of 2014, its loadings flat. At the opposite end, UP is down 6 percent year to date and the seven Class I railroads as a group down 2.3 percent.”
http://cs.trains.com/trn/b/fred-frailey/archive/2016/01/01/the-party-39-s-over.aspx
CSX had a great run there for a while ... glad I got out when I did!
I heard somewhere recently someone wondering or speculating that businesses are going down on purpose now - causing big hurt to employees, on purpose.
So employees can assess the situation and see that the DemoRats have done bad bad things to them.
So that they vote R ! . . hmmmmm
And the rumors about shipping coming to a near halt worldwide don’t help.
You have been demoted to PFC...
UNP is a short.........back to $50 imo...
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