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Related: About this forumRailcars reactivating rapidly
May 07, 2018 Finance/Leasing, Freight Cars, Mechanical, News
Railcars reactivating rapidly
Written by William C. Vantuono, Editor-in-Chief
As of May 7, 2018, there were 306,500 railcars in storage, and their numbers should drop below 300,000 before the third quarter, a level that historically correlates with better railcar orders, according to Susquehanna International Group Equity Research Analyst-Industrials Bascome Majors. The overhang of stored railcars continued to fall materially month-over month during April, he notes. Total railcars in storage fell for the fourth straight month, by 8,700. That equals a rate of around 2.8% month-over month.
The percentage of the North American fleet in storage fell to 18.6%, the lowest level in nearly three years. By comparison, on July 1, 2015, there were 283,600 railcars in storage, or 17.8% of the fleet.
Declines in stored railcars were broad-based in April, with all car types falling month-over month for the second consecutive month. Open-top hoppers in storage (most likely coal) fell by 3,200, or 8.6%, month-over month for back-to-back months of sequential declines. This snapped six straight months of cars exiting service and returning to storage.
Tank cars (34% of total empty railcars; 25% of the fleet) saw 1,800 cars exit storage. One thousand flat cars returned to service; 170 boxcars returned to service. Some 115 other car types returned to service as they exited storage.
Railcars reactivating rapidly
Written by William C. Vantuono, Editor-in-Chief
As of May 7, 2018, there were 306,500 railcars in storage, and their numbers should drop below 300,000 before the third quarter, a level that historically correlates with better railcar orders, according to Susquehanna International Group Equity Research Analyst-Industrials Bascome Majors. The overhang of stored railcars continued to fall materially month-over month during April, he notes. Total railcars in storage fell for the fourth straight month, by 8,700. That equals a rate of around 2.8% month-over month.
The percentage of the North American fleet in storage fell to 18.6%, the lowest level in nearly three years. By comparison, on July 1, 2015, there were 283,600 railcars in storage, or 17.8% of the fleet.
Declines in stored railcars were broad-based in April, with all car types falling month-over month for the second consecutive month. Open-top hoppers in storage (most likely coal) fell by 3,200, or 8.6%, month-over month for back-to-back months of sequential declines. This snapped six straight months of cars exiting service and returning to storage.
Tank cars (34% of total empty railcars; 25% of the fleet) saw 1,800 cars exit storage. One thousand flat cars returned to service; 170 boxcars returned to service. Some 115 other car types returned to service as they exited storage.
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Railcars reactivating rapidly (Original Post)
mahatmakanejeeves
May 2018
OP
lapfog_1
(29,199 posts)1. during the great recession of 2008-2010
huge numbers of railcars were idle... parked on almost any available siding
safeinOhio
(32,674 posts)2. What effect are intermodal containers
Playing in the numbers? I can see more flat cars in the future.
Wellstone ruled
(34,661 posts)3. Something missing in this report.
No mention of the "out of service" numbers. These are rail-cars that are in need of repair,or damaged through derailments and are either headed too or have been assigned to Scrappers and Salvage Yards.