Intermodal markets: Volatility out of L.A.
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 markets: Signs of life?
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
Global trade update
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
Intermodal markets: Maersk: Global trade recovery will be slow
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
PSR’s past and future
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
Intermodal markets: Competition holding pricing down
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
Transportation Liquidity and Credit Analysis in a COVID19 Driven Recession
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
Intermodal markets: What would a rebound look like?
In Q1, some railroads grew intermodal (Canadian Pacific), some kept it flat (CSX), while others saw steep declines (Union Pacific).
Intermodal markets: CSX’s trucklike service
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 markets: Networks imbalanced
Intermodal providers are paying for more empty moves and dealing with lopsided demand. But are imbalances structural or cyclical?
Intermodal markets: Worse before it gets better
Contracted truckload volumes went negative on a year-over-year basis Wednesday and will continue to drop. We expect intermodal capacity to be abundant.
The $2 trillion stimulus package’s effect on transportation
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
Intermodal markets: coronavirus bullwhip
Asian exports are ramping as North American demand plummets, and containers are caught in the middle.
After the peak
Trucking carriers and 3PLs reported that volumes softened this week.
Intermodal markets: Under pressure
Intermodal volumes fell sharply on an unfavorable mix-shift to short-haul grocery and CPG.
Intermodal markets: Not catching the wave
A surge in shorthaul reefer truckloads doesn't help the rails much.
Intermodal markets: signs of life in Oakland
Intermodal train velocities fell across the Class Is, but import shipments to the Port of Oakland ticked up.
Intermodal markets: volumes nosedive
Bearish comments on long-term intermodal market penetration from Knight-Swift management give us pause.
Bracing for a U.S. coronavirus epidemic
We game out best, base, and worst cases for the U.S. macroeconomy, financial markets, and freight markets.
Intermodal markets: it’s finally happening
Intermodal spot rates are starting to fall in response to persistently weak volumes.
Intermodal Markets, Feb. 19
Intermodal volumes are weak and IMCs are having no trouble covering contracted freight.