Volumes last week were helped by a Fourth of July on Saturday, which meant the holiday’s negative impact to freight was muted compared to the prior year. Intermodal volumes would not have been positive y/y without that effect, in our view, but a holistic view of the data confirms that
Tight trucking capacity continues to boost intermodal volumes out of Southern California, where volumes have recovered to a much greater extent than in Chicago, New York/New Jersey, or Savannah, Georgia. Most of the blank sailings on the eastbound trans-Pacific lane are behind us; container volumes at West Coast ports should
Intermodal volumes are bouncing back to the low levels of 2019, and U.S. Class I railroads are recovering faster than their neighbors to the north and south. We believe that intermodal volumes will continue to rise, especially on the West Coast, as the number of blank sailings scheduled diminishes going
Intermodal volumes and rates are weak compared to 2019, which was weak compared to 2018. That fundamental picture hasn’t changed, but it now appears that activity in trucking markets is providing some lift to intermodal. Intermodal volumes last week were down just 7.3% year-over-year (y/y), substantially better than the four-week
Intermodal volumes continue to outperform the trailing 4-week average, and there are a few reasons why we believe this trend will continue. First, shippers are running into capacity issues getting freight out of China, reflected in Freightos Baltic Index spot rates for 40’ containers from China to the West Coast.
Intermodal volumes continue to improve, down 10.6% year-over-year but beating the trailing four-week average as they have in prior weeks. But keep in mind that 2019 was a weak year for freight markets and a soft year for intermodal volumes: The mode is well into a multiyear volume decline that
Intermodal volumes are improving, but they’re still double-digit percentages below 2019 levels, which was not a great year for the railroads. Because volumes are low and intermodal capacity is easy to secure, tender rejections are insignificant — intermodal marketing companies (IMCs) are taking all of the contracted freight they can
Intermodal volumes were stronger than their four-week trailing average in week 20, though still down 14% compared to the same period in 2019. Air pockets remain in containerized freight networks — there will be soft periods on a lag to demand going forward — but it seems clear to us
West Coast ports have taken their medicine; now it’s time for the East Coast to suffer. China’s economy is working to make up for lost time (air pollution now exceeds 2019 levels), and West Coast volumes have already started reaping the benefits, gaining momentum out of their March trough. Economic
Guidance from the largest containership line in the world suggests that the volume recovery in containerized global trade will take longer than perhaps some expected. Maersk, the Danish shipping giant, reported its Q1 results this morning and said that not only would East-West trade lanes be negatively impacted
The modern operating strategies known collectively as precision scheduled railroading (PSR) have driven profound changes in the way railroads think about their workforces, revenue growth, assets, facilities, networks and customer service. In this piece, we explore the past, present and future of PSR through two decades of railroad industry financial
Hub Group managed through a tough quarter, taking a 10% hit to revenue compared to the first quarter of 2019. HUBG pivoted, only giving up 90 basis points of gross margin and cutting operating costs. Net income fell 44.6% to $13.2 million. CEO David Yeager discussed intermodal market dynamics in
When the financial markets come under stress and the U.S. enters a recession, creditanalysis always comes back to the forefront and is the most important considerationof investors. This is where we find ourselves now in the aftermath of COVID-19becoming a global pandemic that has effectively shut down much of the
In Q1, some railroads grew intermodal (Canadian Pacific), some kept it flat (CSX), while others saw steep declines (Union Pacific).
After markets closed this afternoon, CSX reported its financial results for the first quarter of 2020, giving us a look at how eastern rail intermodal networks are performing (tomorrow western railroad Union Pacific reports). There are a couple of things that jumped out at us: CSX successfully sold domestic intermodal
Intermodal providers are paying for more empty moves and dealing with lopsided demand. But are imbalances structural or cyclical?
Contracted truckload volumes went negative on a year-over-year basis Wednesday and will continue to drop. We expect intermodal capacity to be abundant.
Congress just passed a $2 trillion stimulus package. This figure equates to 9% of 2019 U.S. GDP of $21.5 trillion. As COVID-19 rapidly spreads and has become a pandemic, vast swaths of the global economy are shut down, which should lead to mounting unemployment and a deep recession. The second-to-last
Asian exports are ramping as North American demand plummets, and containers are caught in the middle.
Trucking carriers and 3PLs reported that volumes softened this week.
Intermodal volumes fell sharply on an unfavorable mix-shift to short-haul grocery and CPG.