Jobs Update

• Initial jobless claims seasonally adjusted for the week ending November 9th came in at 217,000, down -4,000 people week-over-week.

• Continuing jobless claims came in at 1.873 million people, versus the adjusted number of 1.84 million people from the week prior, up 33,000 people week-over-week.

Stocks closed lower on Friday of last week and lower week over week

The DOW closed lower on Friday of last week, down -305.87 points (-0.7%) and closing out the week at 43,444.99, down -544 points week-over-week. The S&P 500 closed lower on Friday of last week, down -78.55 points (-1.32%) and closed out the week at 5,870.62, down -124.92 points week-over-week. The NASDAQ closed lower on Friday of last week, down -429.11 points (-2.22%), and closed out the week at 18,678.54, down -608.24 points week over week.

Wall Street posted its worst weekly performance since the start of September and has now notched a negative week in three of the last four. It was still a historic week for the gauge, which on Monday closed above 6,000 points for the first time ever.  Most likely over the Euphoria of the election results. The focus over the rest of last week quickly shifted back to economic data and the Federal Reserve. Slightly hot consumer and producer inflation data, along with a comment from Federal Reserve chair Jerome Powell on Thursday that the central bank would not be “in a hurry to lower rates” weighed on markets, especially on Friday of last week.

In overnight trading, DOW futures traded lower and are expected to open at 43,494 this morning down 74 points.

Crude oil closed lower on Friday of last week and lower week over week.

West Texas Intermediate (WTI) crude closed down -$1.68 per barrel (-2.45%) to close at $67.02 per barrel on Friday of last week, down $3.33 per barrel week over week. Brent traded down -$1.52 USD per barrel (-2.9%) on Friday of last week, to close at $71.04 per barrel, down -$2.83 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for December delivery settled Friday of last week at US$11.45 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 56.99 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.1 million barrels week-over-week. At 429.7 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 4.4 million barrels week-over-week and are 4% below the five-year average for this time of year.

Distillate fuel inventories decreased by 1.4 million barrels week-over-week and are 5% below the five-year average for this time of year.

Propane/propylene inventories decreased by 2.1 million barrels week-over-week and are 9% above the five-year average for this time of year.

Propane prices closed at 81 cents per gallon on Friday of last week, up 6 cents per gallon week-over-week, but up 18 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 6.5 million barrels during the week ending November 8th, 2024.

U.S. crude oil imports averaged 6.5 million barrels per day during the week ending November 8th, 2024, an increase of 269,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.3 million barrels per day, 0.2% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 628,000 barrels per day, and distillate fuel imports averaged 108,000 barrels per day during the week ending November 8th, 2024.

U.S. crude oil exports averaged 3.44 million barrels per day during the week ending November 8th, 2024, an increase of 590,000  barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.655 million barrels per day.

U.S. crude oil refinery inputs averaged 16.5 million barrels per day during the week ending November 8th, 2024, which was 175,000 barrels per day more week-over-week.

WTI is poised to open at $67.50, up 48 cents per barrel from Friday’s close.

North American Rail Traffic

Week Ending November 13th, 2024.

Total North American weekly rail volumes were up (2.45%) in week 46, compared with the same week last year. Total carloads for the week ending on November 13th were 348,569, down (-3.97%) compared with the same week in 2023, while weekly intermodal volume was 359,036, up (9.55%) compared to the same week in 2023. 6 of the AAR’s 11 major traffic categories posted year-over-year increases. The most significant decrease came from Coal, which was down (-18.07%). The most significant increase came from Intermodal, which was up (+9.55%).

In the East, CSX’s total volumes were up (2.67%), with the largest decrease coming from Coal (-10.49%) while the largest increase came from Petroleum and Petroleum Products (+19.6%). NS’s volumes were up (1.77%), with the largest increase coming from Grain (+17.48%), while the largest decrease came from Petroleum and Petroleum products (-14.25%).

In the West, BN’s total volumes were up (+7.71%), with the largest increase coming from Petroleum and petroleum Products (+27.14%) while the largest decrease came from Coal, down (-19.55%). UP’s total rail volumes were up (6.65%) with the largest decrease coming from Coal, down (-22.15%), while the largest increase came from Intermodal, which was up (+15.98%).

In Canada, CN’s total rail volumes were down (-19%) with the largest decrease coming from Intermodal, down (-53.57%) while the largest increase came from Grain, up (+15.72%). CP’s total rail volumes were down (-13.92%) with the largest increase coming from Other (+90.57%), while the largest decrease came from Coal (-45.47%).

KCS’s total rail volumes were down (-7.8%) with the largest decrease coming from Coal (-24.85%) and the largest increase coming from Motor Vehicles and Parts (+19.12%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -8 rigs week-over-week. U.S. rig count was down -1 rig week-over-week and down by -34 rigs year-over-year. The U.S. currently has 584 active rigs. Canada’s rig count was down -7 rigs week over week, but up by 4 rigs year-over-year and Canada’s overall rig count is 200 active rigs. Overall, year over year we are down by -30 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 29,457 from 29,140, which was a gain of 317 rail cars week-over-week.  Canadian volumes were mixed. CPKC’s shipments were lower by -1.5% week over week, CN’s volumes were higher by +6.4% week-over-week. U.S. shipments were mostly higher. The NS was the sole decliner and was down by -1.2%.  The BN had the largest percentage increase and was up by 7.5%

We are watching Enbridge Line 5

Folks, we have not talked about this one in a while Enbridge Line 5.  Remember the pipeline that Governor Whitmer from Michigan desperately shut down? It seems the tide has turned in a positive way for Enbridge. Enbridge’s contentious plan to reroute around a northern Wisconsin tribal reservation moved closer to reality on Thursday last week after the company won its first permits from state regulators in Wisconsin.

The Wisconsin Department of Natural Resources (“DNR”) state officials announced they have issued construction permits for the Line 5 reroute around the Bad River Band of Lake Superior Chippewa’s reservation. Enbridge still needs discharge permits from the DNR as well as the U.S. Army Corps of Engineers but it is certainly a step in the right direction.  See the reroute below:

Enbridge Line 5 Reroute in Wisconsin

Source: Enbridge – PFL Analytics

The project has generated fierce opposition. The tribe wants the pipeline off its land, but tribal members and environmentalists maintain rerouting construction will damage the region’s watershed and perpetuate the use of fossil fuels.  They just don’t give up!

The DNR issued the construction permits with more than 200 conditions attached. The company must complete the project by November 14, 2027, hire DNR-approved environmental monitors, and allow DNR employees to access the site during reasonable hours.

The company also must notify the agency within 24 hours of any permit violations or hazardous material spills affecting wetlands or waterways; can’t discharge any drilling mud into wetlands, waterways, or sensitive areas; keep spill response equipment at workspace entry and exit points; and monitor for the introduction and spread in invasive plant species.

Bad River tribal officials warned in their own statement on Thursday of last week that the project calls for blasting, drilling, and digging trenches that would devastate area wetlands and streams and endanger the tribe’s wild rice beds.

“I’m angry that the DNR has signed off on a half-baked plan that spells disaster for our homeland and our way of life,” Bad River Chairman Robert Blanchard said in the statement. “We will continue sounding the alarm to prevent yet another Enbridge pipeline from endangering our watershed.”

Line 5 transports approximately 23 million gallons of oil and natural gas daily from Superior, Wisconsin, through Michigan to Sarnia, Ontario. People in Michigan rely on propane deliveries from line 5.  Roughly 12 miles of the pipeline run across the Bad River reservation.

In Michigan  – Michigan’s Democratic attorney general, Dana Nessel, filed a lawsuit in 2019 seeking to shut down twin portions of Line 5 that run beneath the Straits of Mackinac, the narrow waterways that connect Lake Michigan and Lake Huron. Nessel argued that anchor strikes could rupture the line, resulting in a devastating spill. That lawsuit is still pending in a federal appellate court. See below: 

Enbridge Line 5 Straits of Mackinac – Michigan

Source: Enbridge – PFL Analytics

Meanwhile Michigan regulators in December of this year approved the company’s $500 million plan to encase the portion of the pipeline beneath the straits in a tunnel to mitigate risk. The plan is awaiting approval from the U.S. Army Corps of Engineers.  We have been watching this one for years and continue to do so.  The shuttering of Line 5 would be a disaster from an energy perspective for consumers but a bonanza for rail.

We are watching North America’s Ports

East Coast port contract talks will resume

Negotiations on a new labor contract covering workers at 36 East and Gulf Coast ports are set to resume this week between employers and their longshore union.

Representatives of the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) will meet in northern New Jersey, where both organizations have offices.

The USMX and ILA earlier declared a media blackout during negotiations.

Biden administration officials in October ended a three-day strike by the ILA and both sides agreed to extend the current contract until January 15 while negotiations resumed,  five days before President Trump is sworn back into office!  Let’s hope they get a deal done as it is not good for rail and the economy.  The work stoppage shut down container handling and threatened a log jam of billions of dollars of imports ranging from pharmaceuticals, auto parts, apparel, and fresh fruits and vegetables.

At the time of the extension, USMX and ILA agreed to a 62% pay hike over the six years of a new pact covering 45,000 union workers. Automation remains a key sticking point as the union has adamantly opposed the introduction of new port technology that could replace longshore jobs.

 North of the border in Canada

B.C. port operations resumed – the British Colombia Maritime Employers Association (“BCMEA”) says port operations resumed Thursday afternoon last week, following orders from the Canadian federal government after a lockout.

On Wednesday of last week, a statement from the BCMEA said it would comply with the order from the Canada Industrial Relations Board directing it to resume and continue operations “until the board makes a final determination.”

It said the BCMEA was committed to working closely with the union and supply chain partners “to safely and efficiently resume operations at Canada’s West Coast ports.”

It comes over a week after the BCMEA locked out more than 700 unionized workers, stating it had made the “difficult decision” after International Longshore and Warehouse Union (ILWU) Local 514 issued a 72-hour strike notice for job action. 

An estimated $800 million worth of trade flows through Canada’s West Coast ports each day.

The BCMEA also said the board has a hearing scheduled for today between both parties in the contract dispute “on certain questions raised with respect to the ministerial direction.” 

Again, not a good situation for rail or the economy, so let’s hope some deals are cut and we move forward.  There are quite a few cars parked in Western Canada that need to get moving and quite a bit intermodal trains destined for the U.S. to utilize Canadian West Coast ports.

Meanwhile in Montreal as a result of an order from the Canada Industrial Relations Board (CIRB), the Montreal Port Authority (MPA) the Port of Montreal confirms that operations resumed at all Port of Montreal terminals on Saturday, November 16, at 7 a.m.

Its teams were fully mobilized, and the MPA is working closely with all its port and intermodal partners to implement a recovery plan enabling us to return to normal operations as quickly as possible. It may take a few weeks to re-establish the fluidity of the supply chain and process all goods, both imports, and exports, currently at the Port of Montreal or in transit and due to arrive in the next few days. With over 5,000 TEU (twenty-foot equivalent unit) containers currently on the ground, 55,000 linear feet of rail to handle, and 22 vessels on their way or waiting at anchor, every effort will be made to handle these volumes quickly according to the Port.

We are watching Key Economic Indicators

Producer Price Index

In October 2024, the Producer Price Index (PPI) for final demand increased by 0.2%. The index for final demand goods edged up 0.1%, reflecting a 0.3% rise in goods less foods and energy, which offset declines in energy (-0.3%) and food (-0.2%). Meanwhile, the index for final demand services rose by 0.3%, with increases in trade services (0.1%), transportation and warehousing (0.5%), and services less trade, transportation, and warehousing (0.3%). Over the past 12 months, final demand prices increased by 1.7%, marking steady inflation compared to September.

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tanks needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 10, Any Size Stainless Steel DOT111 Tanks needed off of UP or BN in TX for 1-5 Years. Cars are needed for use in Refined Prodcuts service.
• 10, 30K 117R Tanks needed off of CSX or NS in Southeast for 6 Months. Cars are needed for use in Crude service. Needed in Jan
• 50, 30K 117R/117J Tanks needed off of CSX in Northeast for 5 Year. Cars are needed for use in Refined Fuels service.
• 100, 4750 Covered Hoppers needed off of UP or BN in Texas for 1-5 Years. Cars are needed for use in Petcoke service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 30, 33K, 340W Pressure Tanks located off of CN or CP in Edmonton. Cars were last used in Propane/Butane. Winter Lease
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 15-20, 29.2K, AAR211 Tanks located off of UP or BN in Houston. Cars were last used in Veg Oil. Up to 1 year
• 50, 30K, 117J Tanks located off of BN in Texas. Cars were last used in Ethanol. 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over. 10 Year old; Reqaul in 2034
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations.
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 50, 17K, DOT 111 Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

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Jobs Update

• Initial jobless claims seasonally adjusted for the week ending November 2nd came in at 221,000, up 3,000 people week-over-week.

• Continuing jobless claims came in at 1.892 million people, versus the adjusted number of 1.853 million people from the week prior, up 39,000 people week-over-week.

Stocks closed higher on Friday of last week and higher week over week

The DOW closed higher on Friday of last week, up 259.65 points (0.59%) and closing out the week at 43,988.99, up 1,936.8 points week-over-week. The S&P 500 closed higher on Friday of last week, up 22.44 points (0.38%) and closed out the week at 5,995.54, up 266.74 points week-over-week. The NASDAQ closed higher on Friday of last week, up 17.32 points (0.09%) and closed out the week at 19,286.78, up 1,046.86 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 44,295 this morning up 154 points.

Crude oil closed lower on Friday of last week, but higher week over week.

West Texas Intermediate (WTI) crude closed down -$1.98 per barrel (-2.7%) to close at $70.35 per barrel on Friday of last week, up $0.86 per barrel week over week. Brent traded down -$1.76 USD per barrel (-2.3%) on Friday of last week, to close at $73.87 per barrel, up $0.77 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for December delivery settled Friday of last week at US$11.85 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 59.98 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.1 million barrels week-over-week. At 427.7 million barrels, U.S. crude oil inventories are 5% below the five-year average for this time of year.

Total motor gasoline inventories increased by 400,000 barrels from last week and are 2% below the five-year average for this time of year.

Distillate fuel inventories increased by 2.9 million barrels week-over-week and are 6% below the five-year average for this time of year.

Propane/propylene inventories decreased by 1.0 million barrels week-over-week and are 11% above the five-year average for this time of year.

Propane prices closed at 75 cents per gallon on Friday of last week, down 1 cent per gallon week-over-week, but up 10 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 1.1 million barrels during the week ending November 1st, 2024.

U.S. crude oil imports averaged 6.2 million barrels per day during the week ending November 1st, 2024, an increase of 265,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged about 6.0 million barrels per day, 2.4% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 229,000 barrels per day, and distillate fuel imports averaged 162,000 barrels per day during the week ending November 1st, 2024.

U.S. crude oil exports averaged 2.85 million barrels per day during the week ending November 1st, 2024, a decrease of 1.366 million barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.825 million barrels per day.

U.S. crude oil refinery inputs averaged 16.3 million barrels per day during the week ending November 1, 2024, which was 281,000 barrels per day more week-over-week.

WTI is poised to open at $69.38, down $1 per barrel from Friday’s close.

North American Rail Traffic

Week Ending November 6th, 2024.

Total North American weekly rail volumes were up (4.97%) in week 45, compared with the same week last year. Total carloads for the week ending on November 6th were 353,801, up (0.55%) compared with the same week in 2023, while weekly intermodal volume was 357,154, up (9.74%) compared to the same week in 2023. 8 of the AAR’s 11 major traffic categories posted year-over-year increases. The most significant decrease came from Coal, which was down (-14.21%). The most significant increase came from Grain, which was up (+10.74%).

In the East, CSX’s total volumes were up (6.25%), with the largest decrease coming from Coal (-10.48%) while the largest increase came from Petroleum and Petroleum Products (+26.3%). NS’s volumes were up (7.97%), with the largest increase coming from Grain (+39.26%), while the largest decrease came from Chemicals (-7.92%).

In the West, BN’s total volumes were up (+7.62%), with the largest increase coming from Nonmetallic Minerals (+15.88%) while the largest decrease came from Other, down (-23.13%). UP’s total rail volumes were up (2.65%) with the largest decrease coming from Coal, down (-25.13%), while the largest increase came from Other, which was up (+20.44%).

In Canada, CN’s total rail volumes were down (-1.54%) with the largest decrease coming from Other, down (-21.83%) while the largest increase came from Nonmetallic Minerals, up (+28.74%). CP’s total rail volumes were down (-6.12%) with the largest increase coming from Other (+33.33%), while the largest decrease came from Coal (-37.76%). KCS’s total rail volumes were down (-4.5%) with the largest decrease coming from Coal (-43.05%) and the largest increase coming from Forest Products (+41.76%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -6 rigs week-over-week. U.S. rig count was flat week-over-week, but down by -31 rigs year-over-year. The U.S. currently has 585 active rigs. Canada’s rig count was down -6 rigs week over week, but up by 8 rigs year-over-year and Canada’s overall rig count is 207 active rigs. Overall, year over year we are down by -23 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 29,140 from 29,097, which was a gain of 43 rail cars week-over-week.  Canadian volumes were higher. CPKC’s shipments were higher by +1.6% week over week, CN’s volumes were higher by +2.0% week-over-week. U.S. shipments were down across the board. The CSX had the largest percentage decrease and was down by -7.8%.

We are Watching the Green Agenda

It is a true battle out there!  North of the border in Canada, Prime Minister Justin Trudeau continues with the green agenda.  While down here in the United States, it is about to change with the decisive victory of President Trump in last week’s election.

Cap and Trade in Canada:

On Monday of last week, the federal government of Canada introduced draft regulations to put a limit on greenhouse gas emissions from the oil and gas sector.

The proposed regulations involve a cap-and-trade system that works in three-year periods. The first compliance period of 2030 to 2032 is set at 35 percent below 2019 emissions.  Ottawa expects final regulations for this cap in 2025, and reporting and verification requirements for large operators to begin in 2026.

“Our analysis shows production of oil and gas, GDP growth, and jobs in the sector will all continue to grow substantially from today with the emissions cap in place,” said a senior official from the federal government during a technical briefing on the cap on Monday of last week.

“For example, our modeling suggests oil and gas production is expected to grow by 16 per cent from 2019 levels in the 2030 to ’32 period, while still leading to emission reductions.”

While the federal government said the proposed regulations put a limit on emissions, not production, many vehemently disagree. 

Alberta immediately  fought back! “Make no mistake, this cap violates Canada’s constitution,” said the Alberta government, upon immediate release of the feds’ plan.“ Section 92A clearly gives provinces exclusive jurisdiction over non-renewable natural resource development yet this cap will require a one million barrel a day production cut by 2030.”

Alberta Premier Danielle Smith, during a press conference on Monday, said bluntly  “I’m pissed,” and Smith replied “I’m absolutely angry.“ “Because we have been working with these guys for two years, because we have a plan that would reduce emissions responsibly by 2050.”

Smith went on to say “they continue to act like they are working collaboratively with us and then they come out with exactly the same policy they put forward a year ago, with no changes whatsoever. And then they are trying to mislead the public about its intent and mislead the public about our true record.”

Smith was asked to respond to a comment by Steven Guilbeault, Minister of Environment and Climate Change of Canada, at a press event in which he and other ministers announced the draft regulations. He responded to a question about the Alberta government’s Scrap the Cap campaign.

“It’s more hot air and disinformation on the part of the conservative movement in Canada,” he said.

“Whether it is (Conservative Party of Canada Leader) Pierre Poilievre, whether it is Danielle Smith, whether it is (Saskatchewan Premier) Scott Moe, pretending climate change isn’t happening in the face of mounting climate impacts and dramatic impacts on the lives of Canadians — also the costs to the Canadian economy. They will continue doing stupid things and we will continue focusing on helping Canadians to create a robust economy, good jobs, and work to protect the environment.”

The federal minister is not helping Canadians, replied Smith, he’s “harming” them, noting corresponding job and revenue losses, among other impacts from the cap.

We are watching this one, folks – there is an election in Canada next year, we will see what the people decide.

 The Green Agenda in the U.S.:

Does the Green Agenda continue here in the U.S.?  It is our belief it will to a certain extent, but it will be more localized to a certain degree depending on your beliefs, and individual and state beliefs and objectives.

Oil and Natural Gas Production:

Trump mentioned in his victory speech that “we have more liquid gold than any country in the world,” which ties in with previous comments from the President-elect that the U.S. will “Drill, baby, drill.” While the incoming administration will hold a more favorable view towards the oil and gas industry, ultimately the potential for production growth is going to be largely dictated by price.

According to the quarterly Dallas Fed Energy Survey, oil producers need US$64 per barrel to profitably drill a new well, and the Kansas Fed Energy Survey shows a similar number. This compares to 2025 and 2026 forward prices of around $70 per barrel and $67 respectively.  Easing regulations will obviously have an impact on these break-even numbers.

Any upside in oil production would likely also provide an upside to natural gas output through associated production. A Trump presidency may also provide more certainty to the industry and provide comfort to them to invest in pipeline infrastructure, alleviating a persistent bottleneck for the U.S. natural gas market, particularly in the Permian Basin. Investment in natural gas pipeline capacity also leaves the potential for stronger crude oil output.

In addition, under Trump’s presidency, we are likely going to see a lifting of Biden’s pause on LNG export project approvals. While this does not change the short-to-medium-term outlook for the global LNG market, it will help remove some of the longer-term uncertainty around LNG supply.

Wind and Solar:

We expect any Federal subsidies given to these industries to end quickly because Trump said they would. There are many projects in play that have been promised loan guarantees and grants.  We are watching this one.

Agriculture and waste Renewables:

There seems to be quite a bit of infrastructure set up already and this is good for farmers.  Again, there will be more influence from individual states moving forward.  However, on Friday of last week during the lame duck session, a bipartisan pair of legislators introduced a bill to the U.S. House of Representatives that would extend a tax credit for second-generation biofuels producers by a year, out to Dec. 31, 2025.

Adding another year to the tax credit would benefit industry stakeholders participating in the scheme, according to the bill’s sponsors, Reps. Mariannette Miller-Meeks (R-Iowa) and Sharice Davids (D-KS).

Biofuels producers are “lacking the market certainty they need to make critical investments” due to the federal government’s delay in issuing guidance for a separate biofuels tax credit scheme scheduled to begin on January 1, 2025, the representatives said in a joint news release.

That incoming scheme — known as the Clean Fuel Production Credit, or 45Z — was established in the Inflation Reduction Act of 2022 and aims to offer producers a credit ranging from 35cts to $1.75 per gallon for SAF and 20cts to $1/gal for all other fuels. That scaling credit amount will reward producers for their ability to reduce the carbon intensity of their product below the 50 kg of CO2/MMBtu baseline established in the IRA. That same bill extended the second-generation biofuels tax credit to Dec. 31, 2024.

We are watching Key Economic Indicators

Purchasing Managers Index (PMI)

The Institute for Supply Management releases two PMI reports – one covering manufacturing and the other covering services. These reports are based on surveys of supply managers across the country and track changes in business activity. A reading above 50% on the index indicates expansion, while a reading below 50% signifies contraction, with a faster pace of change the farther the reading is from 50.

The Manufacturing PMI in October 2024 was 46.5%, down from 47.2% in September and 47.2% in August. This marks the eighth month of contraction in 2024 and the sixth consecutive month below 50%.   An ongoing manufacturing slump has dampened carload volumes. October also marked the seventh consecutive month of contraction in manufacturing, carload volumes for key industrial commodities — like metallic ores, crushed stone and metals — remain subdued, reflecting weaker demand in the sector. In a bit of better news, the new orders subindex showed signs of stability, indicating gradual adjustments in demand and production.

Consumer Spending

In September 2024, total consumer spending adjusted for inflation rose a preliminary 0.2% over August 2024. This follows a revised increase of 0.3% in August and a drop of 0.2% in July. Year-over-year inflation-adjusted total spending in September 2024 was up 2.3%.

Inflation-adjusted spending on goods rose a preliminary 0.4% in September, following the 0.5% decline in July 2024. Inflation-adjusted spending on services rose 0.1% in September, marking the thirteenth consecutive month-to-month increase.

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tanks needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 10, Any Size Stainless Steel DOT111 Tanks needed off of UP or BN in TX for 1-5 Years. Cars are needed for use in Refined Prodcuts service.
• 10, 25.5K-29K 117R Tanks needed off of CSX or NS in Southeast for 6 Months. Cars are needed for use in Crude service. Needed in Jan
• 50, 30K 117R/117J Tanks needed off of CSX in Northeast for 5 Year. Cars are needed for use in Refined Fuels service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 15-20, 29.2K, AAR211 Tanks located off of UP or BN in Houston. Cars were last used in Veg Oil. Up to 1 year
• 30, 33K, 340W Pressure Tanks located off of CN or CP in Edmonton. Cars were last used in Propane/Butane. Winter Lease
• 50, 30K, 117J Tanks located off of BN in Texas. Cars were last used in Ethanol. 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over. 10 Year old; Reqaul in 2034
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 50, 17K, DOT 111 Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 11-11-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending October 26th came in at 216,000, down -12,000 people week-over-week.

• Continuing jobless claims came in at 1.862 million people, versus the adjusted number of 1.888 million people from the week prior, down -26,000 people week-over-week.

Stocks closed higher on Friday of last week, but down week over week

The DOW closed higher on Friday of last week, up 288.73 points (0.69%) and closing out the week at 42,052.19, down -62.21 points week-over-week. The S&P 500 closed higher on Friday of last week, lower -23.35 points (0.41%) and closed out the week at 5,728.8, down -79.32 points week-over-week. The NASDAQ closed higher on Friday of last week, up 144.77 points (0.78%) and closed out the week at 18,239.92, down -278.7 points week over week.

In overnight trading, DOW futures traded higher and are expected to open at 42,249 this morning, up 40 points.

Crude oil closed higher on Friday of last week, but lower week over week.

West Texas Intermediate (WTI) crude closed up $0.23 per barrel (0.3%) to close at $69.49 per barrel on Friday of last week, down -$2.29 per barrel week over week. Brent traded up $0.29 USD per barrel (0.4%) on Friday of last week, to close at $73.10 per barrel, down -$2.95 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for December delivery settled Friday on last week at US$12.10 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 56.59 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 500,000 barrels week-over-week. At 425.5 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 2.7 million barrels week-over-week and are 3% below the five-year average for this time of year.

Distillate fuel inventories decreased by 1.0 million barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories decreased by 200,000 barrels week-over-week and are 11% above the five-year average for this time of year.

Propane prices closed at 76 cents per gallon on Friday of last week, up 1 cent per gallon week-over-week and up 11 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 9.5 million barrels during the week ending October 25th, 2024.

U.S. crude oil imports averaged 6 million barrels per day during the week ending October 25th, 2024, a decrease of 456,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged about 6 million barrels per day, 2.2% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 495,000 barrels per day, and distillate fuel imports averaged 158,000 barrels per day during the week ending October 25th, 2024.

U.S. crude oil exports averaged 4.216 million barrels per day during the week ending October 25th, 2024, a decrease of 104,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 4,601 million barrels per day.

U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week ending October 25, 2024, which was 30,000 barrels per day less than the previous week’s average.

WTI is poised to open at $71.31, up  $1.82 per barrel from Friday’s close.

North American Rail Traffic

Week Ending October 30th, 2024.

Total North American weekly rail volumes were up (3.3%) in week 44, compared with the same week last year. Total carloads for the week ending on October 30th were 354,958, up (0.01%) compared with the same week in 2023, while weekly intermodal volume was 359,625, up (6.76%) compared to the same week in 2023. 9 of the AAR’s 11 major traffic categories posted year-over-year increases. The most significant decrease came from Coal, which was down (-10.52%). The most significant increase came from Motor Vehicles and Parts, which was up (+8.7%).

In the East, CSX’s total volumes were up (0.82%), with the largest decrease coming from Coal (-12.91%) while the largest increase came from Petroleum and Petroleum Products (+22.06%). NS’s volumes were up (6.32%), with the largest increase coming from Other (+17.35%), while the largest decrease came from Farm Products (-1.46%).

In the West, BN’s total volumes were up (+7.06%), with the largest increase coming from Farm Products (+11.04%) while the largest decrease came from Metallic Ores and Metals, down (-10.21%). UP’s total rail volumes were up (2.2%) with the largest decrease coming from Coal, down (-20.76%), while the largest increase came from Grain, which was up (+17.12%).

In Canada, CN’s total rail volumes were down (-1.34%) with the largest decrease coming from Intermodal, down (-6.98%) while the largest increase came from Grain, up (+14.02%). CP’s total rail volumes were down (12.09%) with the largest increase coming from Other (+39.62%), while the largest decrease came from Coal (-37.15%).KCS’s total rail volumes were down (-4.86%) with the largest decrease coming from Coal (-44.21%) and the largest increase coming from Motor Vehicles and Parts (+49.32%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -3 rigs week-over-week. U.S. rig count was flat week-over-week, but down by -33 rigs year-over-year. The U.S. currently has 585 active rigs. Canada’s rig count was down -3 rigs week over week, but up by 17 rigs year-over-year and Canada’s overall rig count is 213 active rigs. Overall, year over year we are down by -16 rigs collectively.

International rig count was up by 3 rigs month-over-month, but down by -12 rigs year-over-year. Internationally there are 950 active rigs.

North American Rig Count Summary

You, the reader, are probably wondering why Canada’s rig count is up year over year when the rest of the world, including the U.S., are down year over year?  We have seen record-low natural gas pricing and, if it was not for geopolitical risk and the current administration in power here in the U.S. (we will see what tomorrow brings), oil prices fundamentally would be much lower than they are today.  The world sees that, but Canada has some catching up to do to fill its pipeline capacity.

The start-up of the TMX pipeline in early May resulted in a rapid boost in demand for drilling rigs as operators increased activity to fill the line, Precision Drilling Corporation president and chief executive officer Kevin Neveu said during the company’s third-quarter conference. Trans Mountain Expansion (“TMX”) added 590,000 barrels per day of new pipeline capacity.

“We were surprised by how quickly industry responded to the increased takeaway capacity on TMX,” said Neveu, with activity about 15 percent higher than Precision expected.

Demand for Precision’s high specification Super Single and Super Triple rigs is at “historic highs,” he said. Precision has 75 rigs operating in Canada, with its high specification rigs nearly fully utilized.

“It’s looking like a very busy 2025, with the pace of activity exceeding 2024,” he said.

Demand for Super Single rigs is being driven by multilateral well development in conventional heavy oil plays like the Clearwater and increased oilsands SAGD development as operators take advantage of the 590,000 bbls/d of additional oil egress out of the basin provided by the TMX.

“Drilling operations are the key cost driver in heavy oil,” he said. “In the Clearwater, wells are complex multilaterals where accurate placement of wellbores is critical.”

The Super Singles are ideal for this application, said Neveu. They also come equipped with the pad walking system and other automated features needed to drill multiple wells from the same pad efficiently.

Demand for Super Triples has increased as operators target condensate-rich areas in the Montney to provide diluent needed for heavy oil to flow down the TMX, Neveu said. There is a current shortfall of around 270,000 bbls/d of diluent in Canada, keeping prices near or above WTI oil prices, which makes wells economic despite low natural gas prices.

In 2025, he expects demand for high performance triple rigs to increase by an additional two to five rigs when LNG Canada comes online in the second quarter.

Increased pad drilling is allowing operators to extend the drilling season into spring breakup, keeping utilization rates higher for both the Super Single and Super Triple rigs, he added.

A few things we are watching:

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 29,097 from 28,850, which was a gain of 247 rail cars week-over-week.  Canadian volumes were lower. CPKC’s shipments were lower by -9.3% week over week, CN’s volumes were lower by -1.3% week-over-week. U.S. shipments were up across the board. The NS had the largest percentage increase and was up 11.7%.

We are watching Canadian Crude by Rail

Crude by rail out of Canada continued to decrease month over month. The Canadian Energy regulator reported on October 28th, 2024, that 79,200 barrels per day were exported during the month of August 2024 from 83,201 barrels per day in July of 2024 a decrease of 4,001 barrels per day month over month.

Despite crude oil production in western Canada reaching record highs, Canadian crude oil volumes exported by rail have declined by 31% overall in 2023, averaging 98,300 barrels per day in 2023, which is down from 143,300 barrels per day in 2022 and so far in 2024, we have averaged a little over 90,000 barrels per day. This drop is largely due to crude oil increasingly being exported by pipelines instead of rail after additional pipeline capacity was brought online in recent years.

In 2019, crude exports by rail reached an annual historical high because pipelines in western Canada were operating near or at full capacity. This trend continued into early 2020, with February 2020 hitting a record monthly high of 412,000 barrels per day.. Since then, annual average volumes exported by rail have been dropping, first from the COVID-19 pandemic where oil demand declined. The decline of crude by rail out of Canada continued as additional pipeline capacity became available for oil exports out of western Canada.  In October 2021 the completion of the Enbridge Mainline Line 3 replacement program, added 370,000 barrels per day of capacity and of course, the recent completion of the Trans Mountain Expansion (“TMX”) that added 590,000 barrels per day of capacity has caused producers to shift away from crude by rail.  Crude by rail is more than twice the cost of pipelines.

Despite the setback, crude by rail will always be necessary out of Canada for stranded oil not connected by pipelines, and raw bitumen shipped as a non-haz product, as it is not able to flow in pipelines and is competitive with pipeline tolls. This is a growing market to keep an eye on. Other factors include existing long-term contractual commitments and basis. Frankly, we really need to see basis, the WTI-CMA (West Texas Intermediate – Calendar Month Average) blows out to -17 per barrel for sustained periods of time to make economic sense, and right now seems to be stable at -12 per barrel.  Stay tuned to PFL for further details, we watch this one every day!

We are watching Key Economic Indicators

Consumer Confidence

In October 2024, The Conference Board’s Consumer Confidence Index increased to 108.7 from 99.2 in September, marking the largest monthly gain since 2021. Key improvements include higher consumer optimism about current and future business conditions, job availability, and stock prices. Inflation concerns remain, although grocery prices showed a slight decline according to government data (we don’t see it). Consumers also expect slightly higher interest rates in the coming year, but the overall recession risk perceived by consumers is at its lowest since July 2022 – we will see what happens.

The University of Michigan’s Index of Consumer Sentiment showed an unexpected increase, revising upwards from an initial estimate of 68.9 to 70.5 for October, marking the highest level in six months. This rise reflects modestly improved buying conditions, likely influenced by slight reductions in interest rates. While consumer expectations remained mostly stable, current economic conditions saw an uptick, moving from 63.3 in September to 64.9 in October. Despite these positive shifts, inflation expectations remain cautiously monitored, with long-term expectations slightly edging down to 3.0% from 3.1%

U.S. Unemployment

Total non-farm payroll employment was essentially unchanged in October (+12,000 jobs), and the unemployment rate was unchanged at 4.1 percent, the U.S. Bureau of Labor Statistics reported on Friday of last week. Employment continued to trend up in health care and government. Temporary help services lost jobs.  That’s all, we need more government jobs!

Meanwhile, employment declined in manufacturing due to what the U.S. Bureau of Labor Statistics attributes to “strike activity.”

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tanks needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 10, Any Size Stainless Steel DOT111 Tanks needed off of UP or BN in TX for 1-5 Years. Cars are needed for use in Refined Prodcuts service.
• 10, 25.5K-29K 117R Tanks needed off of CSX or NS in Southeast for 6 Months. Cars are needed for use in Crude service. Needed in Jan
• 100, 30K 117R/117J Tanks needed off of CN/CP in Western Canada for 2 Years. Cars are needed for use in Refined Fuels service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term
• 15-20, 29.2K, AAR211 Tanks located off of UP or BN in Houston. Cars were last used in Veg Oil. Up to 1 year
• 30, 33K, 340W Pressure Tanks located off of CN or CP in Edmonton. Cars were last used in Propane/Butane. Winter Lease
• 50, 30K, 117J Tanks located off of BN in Texas. Cars were last used in Ethanol. 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over. 10 Year old; Reqaul in 2034
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 50, 17K, DOT 111 Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 11-4-2024 appeared first on PFL Petroleum Services LTD.

– Theodore Roosevelt

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending October 19th came in at 227,000, down -15,000 people week-over-week.

• Continuing jobless claims came in at 1.897 million people, versus the adjusted number of 1.869 million people from the week prior, up 28,000 people week-over-week.

Stocks closed mixed on Friday of last week and mixed week over week

The DOW closed lower on Friday of last week, down -259.96 points (-0.61%) and closing out the week at 42,114.4, down -1,161.51 points week-over-week. The S&P 500 closed lower on Friday of last week, down -1.74 points (-0.03%) and closed out the week at 5,808.12, down -56.55 points week-over-week. The NASDAQ closed higher on Friday of last week, up 103.12 points (0.56%) and closed out the week at 18,518.61, up 29.07 points week over week.

In overnight trading, DOW futures traded higher and are expected to open at 42,521 this morning up 200 points.

Crude oil closed up on Friday of last week, and higher week over week.

West Texas Intermediate (WTI) crude closed up $1.59 per barrel (2.27%) to close at $71.78 per barrel on Friday of last week, up $2.56 per barrel week over week. Brent traded up $1.67 USD per barrel (2.25%) on Friday of last week, to close at $76.05 per barrel, up $2.99 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for December delivery settled Friday on last week at US$12.00 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 57.73 per barrel.

Oil prices posted a weekly gain as geopolitical uncertainty remains a central focus of oil traders, a strong dollar and a large U.S. inventory build are holding Brent and WTI back.  However, we will see what this week has in store for us as Israel launched its largest attack ever against Iran over the weekend but shrugged off by the market.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 5.5 million barrels week-over-week. At 426.0 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories increased by 900,000 barrels week-over-week and are 3% below the five-year average for this time of year.  

Distillate fuel inventories decreased by 1.1 million barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories decreased by 1.4 million barrels week-over-week and are 11% above the five-year average for this time of year.

Propane prices closed at 75 cents per gallon on Friday of last week, down 6 cents per gallon week-over-week and up 9 cents per gallon year-over-year.

Overall, total commercial petroleum inventories increased by 5.9 million barrels during the week ending October 18th, 2024.

U.S. crude oil imports averaged 6.4 million barrels per day during the week ending October 18th, 2024, an increase of 902,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.2 million barrels per day, 1.3% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 514,000 barrels per day, and distillate fuel imports averaged 105,000 barrels per day during the week ending October 18th, 2024.

U.S. crude oil exports averaged 4.112 million barrels per day during the week ending October 18th, 2024, a decrease of 11,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.977 million barrels per day.

U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week ending October 18, 2024, which was 329,000 barrels per day more week-over-week.

WTI is poised to open at $67.42, down -$4.36 per barrel from Friday’s close.

North American Rail Traffic

Week Ending October 23rd, 2024.

Total North American weekly rail volumes were up (0.82%) in week 43, compared with the same week last year. Total carloads for the week ending on October 23rd were 343,187, down (-3.77%) compared with the same week in 2023, while weekly intermodal volume was 355,591, up (5.68%) compared to the same week in 2023. 6 of the AAR’s 11 major traffic categories posted year-over-year decreases. The most significant decrease came from Coal, which was down (-10.83%). The most significant increase came from Other which was up (+8.88%).

In the East, CSX’s total volumes were down (-1.31%), with the largest decrease coming from Nonmetallic Minerals (-21.10%) while the largest increase came from Petroleum and Petroleum Products (+24.92%). NS’s volumes were up (4.26%), with the largest increase coming from Grain (+77.69%), while the largest decrease came from Forest Products (-4.92%).

In the West, BN’s total volumes were up (+4.69%), with the largest increase coming from Intermodal (+10.98%) while the largest decrease came from Other, down (-19.09%). UP’s total rail volumes were down (0.64%) with the largest decrease coming from Coal, down (-21.71%), while the largest increase came from Other, which was up (+46.43%).

In Canada, CN’s total rail volumes were down (-9.52%) with the largest decrease coming from Intermodal, down (-21.22%) while the largest increase came from Other, up (+14.9%). CP’s total rail volumes were up (2.28%) with the largest increase coming from Other (+268%), while the largest decrease came from Petroleum and Petroleum Parts (-24.14%).

KCS’s total rail volumes were down (-7.81%) with the largest decrease coming from Coal (-45.95%) and the largest increase coming from Farm Products (+72.66%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -1 rigs week-over-week. U.S. rig count was flat week-over-week, but down by -40 rigs year-over-year. The U.S. currently has 585 active rigs. Canada’s rig count was down -1 rig week over week, but up by 20 rigs year-over-year and Canada’s overall rig count is 216 active rigs. Overall, year over year we are down by -20 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We Are Watching Key Economic Indicators

Producer Price Index

In September 2024, the Producer Price Index (PPI) for final demand remained unchanged from August. The index for final demand goods fell by 0.2%, primarily due to a significant 2.7% drop in energy prices, notably a 5.6% decrease in gasoline. On the other hand, the index for final demand services saw a 0.2% increase, led by sectors like machinery, vehicle wholesaling, and deposit services. Over the past 12 months, final demand prices increased by 1.8%, which is slightly up from the 1.7% recorded in August.

We Are Watching Class 1 Headcount

Class I railroads employed 120,399 workers in the United States in September 2024, a -0.18% decrease from August 2024’s count of 120,611 and a -1.69% year-over-year decrease, according to Surface Transportation Board data.

Five of the six employment categories posted month-over-month decreases between August and September. They were executives, officials, and staff assistants, down -0.56% to 7,858 workers; transportation (train and engine), down -0.17% to 51,757 employees; professional and administrative, down -0.40% to 9,729; maintenance of way and structures, down -0.21% to 28,923; and transportation (other than train and engine), down -0.04% to 5,027.

The category that posted a month-over-month increase was maintenance of equipment and stores, up +0.13% to 17,105.

Year over year, two categories posted employment gains. Transportation (other than train and engine) increased by +2.17%, rising from 4,920 in September 2023 to 5,027 in September 2024. Additionally, maintenance of way and structures experienced a slight gain of +0.10%, increasing from 28,894 in September 2023 to 28,923 in September 2024.

Categories that registered year-over-year decreases in September were maintenance of equipment and stores, down -5.66%; professional and administrative, down -5.50%; executives, officials, and staff assistants, down -4.59%; and transportation (train and engine), down -0.44%.

We are watching the FRA

The Federal Railroad Administration last week published a notice of proposed rulemaking that calls for improving track safety by pairing automatic inspection technology with human inspections.

The changes would require certain railroads to supplement visual inspections by operating a track geometry measurement system (TGMS) at specified minimum frequencies on certain types of track. The rule also would set timeframes by which the railroads must act to remediate any track defects identified, FRA officials said in a press release last week.

Specifically, short lines, regionals, intercity passenger and commuter railroads would need to meet specified inspection frequencies on mainline and controlled siding track used to transport annual tonnage greater than 10 million gross tons, regularly scheduled passenger-rail service, or trains containing hazardous materials.

We are watching Renewables

Ethanol:

The rebound in U.S. ethanol spot prices from seven-month lows that traded the previous week began to run out of steam last week after a midweek report from the government showed a sharp, ongoing rise in ethanol production.  Plant turnarounds are pretty much over folks, and most are running flat out.  Ethanol closed at $1.55 and ½ of a cent per gallon, down 1 cent per gallon day over day, but up 1 cent per gallon week over week.

A recovery in corn futures last week did support ethanol spot values through the early part of the last week.  Corn futures were up over 3.5% week over week.  EIA recorded only a slight draw in U.S. ethanol stockpiles week over week, slipping 0.22% to 22.223 million bbl up 826,000 bbl year over year.  The more ethanol produced and shipped, the better it is for rail!

Renewable Credits:

Well folks, RINS and LCFS credits are moving higher from their lows.  Why?  The current federal administration – the Green New Deal and certain states are causing us to pay more at the pump with no end in sight with the green agenda.  In a busy end to the week last week in RINS, D4 RINS closed out the day on Friday, of last week, at 70 cents per RIN, down 1 and ½ cents per RIN day over day, but no change per RIN week over week. Meanwhile, D6 RINS also closed at 70 cents per RIN, down 1 and ½ cents per RIN day over day, but no change week over week. LCFS credits in California, in a semi-active session, closed out the day, and the week, at $63.00 per MT, down $1.00 per MT day over day, and down $5.00 per MT week over week.  See below PFL charts:

Government Handouts For The Green New Deal

They keep coming at a rampant pace. Last week alone, every American (not taxpayer) dished out roughly $5 per person in loan guarantees and grants that we know about for the fast-tracking of certain projects ahead of the November 5th election.

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tanks needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 10, Any Size Stainless Steel DOT111 Tanks needed off of UP or BN in TX for 1-5 Years. Cars are needed for use in Refined Prodcuts service.
• 10, 25.5K-29K 117R Tanks needed off of CSX or NS in Southeast for 6 Months. Cars are needed for use in Crude service. Needed in Jan

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term
• 15-20, 29.2K, AAR211 Tanks located off of UP or BN in Houston. Cars were last used in Veg Oil. Up to 1 year
• 30, 33K, 340W Pressure Tanks located off of CN or CP in Edmonton. Cars were last used in Propane/Butane. Winter Lease

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over. 10 Year old; Reqaul in 2034
• 50, 17K, DOT 111 Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 10-28-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending October 12th came in at 241,000, down -19,000 people week-over-week.

• Continuing jobless claims came in at 1.867 million people, versus the adjusted number of 1.858 million people from the week prior, up 9,000 people week-over-week.

Stocks closed higher on Friday of last week and higher week over week

The DOW closed higher, on Friday of last week up 36.86 points (0.09%), closing out the week at 43,275.91, up 412.06 points week-over-week. The S&P 500 closed higher on Friday of last week, up 23.2 points and closed out the week at 5,864.67, up 49.64 points week-over-week. The NASDAQ closed higher on Friday of last week, up 115.94 points (0.63%) and closed out the week at 18,489.55, up 146.62 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 43,485 this morning down -33 points.

Crude oil closed down on Friday of last week, and down week over week.

West Texas Intermediate (WTI) crude closed down -$1.45 per barrel (-2.05%) to close at $69.22 per barrel on Friday of last week, down -$6.34 per barrel week over week. Brent traded down -$1.39 USD per barrel (-1.87%) on Friday of last week, to close at $73.06 per barrel, down -$5.98 per barrel week-over-week.

Increasing oil and gas supplies, which are expected to come on stream over the next few years, will keep a lid on prices and lessen energy security concerns for the remainder of the decade, International Energy Agency (IEA) executive director Fatih Birol said during the launch of the IEA’s World Energy Outlook 2024 on Friday of last week.

But, there is still potential for geopolitical crises to drive volatility in markets, Birol added, with the Middle East the area of highest concern.

“What is clear is in the second half of the decade we are entering a new market context. The fundamentals of the oil and gas sector are easing,” he said. “We are moving into a much more comfortable market context.”

The prospect of more ample or even surplus supplies of oil and natural gas, depending on how geopolitical tensions evolve, “would move us into a very different energy world from the one we have experienced in recent years during the global energy crisis,” Birol added.

“It implies downward pressure on prices, providing some relief for consumers that have been hit hard by price spikes.”

On the oil side, Birol said the IEA is forecasting significant new supply coming onstream from the Americas, including the U.S., Canada, Brazil, and Guyana.

“On the demand side, last year we said we expected fossil fuel demand growth will come to an end by 2030. This year we are reconfirming that oil demand will peak before 2030. But we will still need oil for years to come. It doesn’t mean it will decline immediately.”

The rise in electric vehicles will be the main driver in curtailing oil demand, particularly in China, said Birol. Globally, the IEA expects about 20 percent of global car sales will be some form of EV this year, with 50 percent of car sales in China being EVs.

“We’re seeing EVs penetrate the car market in all key markets,” he said. “By 2030 we expect half of new car sales to be electric, resulting in substantial displacement of oil consumption compared to today.”

One Exchange WCS (Western Canadian Select) for December delivery settled Friday on last week at US$12.75 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 56.78 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.2 million barrels week-over-week. At 420.5 million barrels, U.S. crude oil inventories are 5% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 2.2 million barrels week-over-week and are 4% below the five-year average for this time of year. EIA’s estimate for overall gasoline demand fell sharply off, what many considered an overheated, hurricane-impacted number week over week with implied gasoline demand at 8.620 million barrels per day plunging 1.034 million b/d, or 10.7%, week over week. The bottom line is that everyone filled up in the east got their fill plus some.  We are not worried about the larger-than-normal draw in this week’s numbers.

Distillate fuel inventories decreased by 3.5 million barrels week-over-week and are 10% below the five-year average for this time of year.

Propane/propylene inventories increased by 3.4 million barrels week-over-week and are 13% above the five-year average for this time of year.

Propane prices closed at 81 cents per gallon on Friday of last week, up 4 cents per gallon week-over-week and up 12 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 7 million barrels during the week ending October 11th, 2024.

U.S. crude oil imports averaged 5.5 million barrels per day during the week ending October 11th, 2024, a decrease of 710,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.2 million barrels per day, 3.4% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 526,000 barrels per day, and distillate fuel imports averaged 132,000 barrels per day during the week ending October 11th, 2024.

U.S. crude oil exports averaged 4.123 million barrels per day during the week ending October 12th, 2024, an increase of 329,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.923 million barrels per day.

U.S. crude oil refinery inputs averaged 15.8 million barrels per day during the week ending October 11, 2024, which was 165,000 barrels per day more week-over-week.

WTI is poised to open at $70.34, up $1.12 per barrel from Friday’s close.

North American Rail Traffic

Week Ending October 16th, 2024.

Total North American weekly rail volumes were up (1.44%) in week 42, compared with the same week last year. Total carloads for the week ending on October 16th were 346,381, down (-2.04%) compared with the same week in 2023, while weekly intermodal volume was 351,126, up (5.13%) compared to the same week in 2023. 6 of the AAR’s 11 major traffic categories posted year-over-year decreases. The most significant decrease came from Motor Vehicles and Parts, which was down (-6.82%). The most significant increase came from Other which was up (+10.57%).

In the East, CSX’s total volumes were down (-3.35%), with the largest decrease coming from Grain (-17.28%) while the largest increase came from Forest Products (+12.23%). NS’s volumes were up (0.35%), with the largest increase coming from Grain (+37.83%), while the largest decrease came from Petroleum and Petroleum Products (-12.67%).

In the West, BN’s total volumes were up (+7.68%), with the largest increase coming from Intermodal (+13.3%) while the largest decrease came from Forest Products, down (-9.73%). UP’s total rail volumes were up (+3.3%) with the largest decrease coming from Coal, down (-17.68%), while the largest increase came from Other, which was up (+15.24%).

In Canada, CN’s total rail volumes were down (-7.55%) with the largest decrease coming from Coal, down (-26.52%) while the largest increase came from Other, up (+56.33%). CP’s total rail volumes were up (4.65%) with the largest increase coming from Nonmetallic Minerals (+21.77%), while the largest decrease came from Petroleum and Petroleum Parts (-23.06%). KCS’s total rail volumes were down (-6.75%) with the largest decrease coming from Petroleum and Petroleum Products (-31.65%) and the largest increase coming from Farm Products (+29.84%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -7 rigs week-over-week. U.S. rig count was down by -1 rig week-over-week and down by -39 rigs year-over-year. The U.S. currently has 585 active rigs. Canada’s rig count was down -6 rigs week over week, but up by 19 rigs year-over-year and Canada’s overall rig count is 217 active rigs. Overall, year over year we are down by -20 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are watching industry conferences

Folks, PFL was a proud sponsor and had a table and attended in full force this fall’s Tank Car Committee Meeting in Dallas last week, which covered a wide range of topics focusing on enhancing the safety and reliability of tank cars used in rail transportation. Brian Baker, David Cohen, and Cyndi Popov were there to represent PFL.

The meeting addressed significant issues and set the stage for ongoing improvements in tank car safety and reliability.

Items of Interest:

1. HM 127 Revision: HM 127 which deals with guidelines for the transportation of hazardous materials by rail, and hasn’t been revised since 2014, will have updated regulations and best practices by the end of the month. Implementation will take place over the next 3-5 years with immediate, short-term, and long-term phases.
2. DOT-111 Tank Cars: Citing ongoing safety concerns, the AAR is recommending voluntary upgrades to DOT-117 tank cars for better accident survivability.
3. Federal Railroad Administration (FRA) Audit: The FRA identified issues with tank car repair facilities, specifically the lack of approval from service equipment owners before repairs. There is a need for better coordination and compliance with FRA regulations.

Additional Items:

• Reviewed updates to Publication M-1002, including facility audits, welding qualifications, and non-destructive testing (NDT) procedures.
• Discussed improving the safety and reliability of tank cars, with specific points on fire performance, hinged and bolted manways, and the “stub sill 85% rule.” 
• A new DOT 116 class for tank cars was proposed, aiming to enhance safety standards 
• Addressed common causes of service disruptions and quality failures, particularly with hydrogen peroxide and multiple NARs (Notice of Release).

 For more information on last week’s Tank Car Committee Meeting, call PFL today. The next conference  PFL will be attending will be MARS in Chicago.

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 28,680 from 28,523, which was a gain of 157 rail cars week-over-week.  Canadian volumes were higher. CPKC’s shipments rose by 10.3% week over week, CN’s volumes were higher by 1.2% week-over-week. U.S. shipments were mostly lower. The NS was the largest percentage decrease and was down 13.6%.  The UP was a sole gainer and was up 4.3%.

We Are Watching Natural Gas

Natural gas prices have been struggling to rise above $3 per MMBtu in recent months due to several factors – warmer-than-expected weather across the U.S., lack of pipe, coupled with State and Federal regulations that punish the Natural Gas producer. For most of 2024, prices have hovered between $2.50-$3.00 per MMBtu, with natural gas closing at $2.258 per MMBtu on Friday of last week we are due to test new lows. Natural gas pricing is down by almost 1/3 year over year!  (see below)

The warmer temperatures have dampened demand for heating, typically expected to pick up as the winter season approaches, resulting in lower demand for natural gas. This has been exacerbated by high storage levels, currently 163 Bcf above the five-year average, which continues to apply downward pressure on prices​. 

Natural gas prices are worse in Canada going negative for a few days!

The bearish market sentiment has been supported by consistent storage injections and forecasts that suggest continued mild weather in the coming weeks. Even though production has remained steady, there are weak consumption patterns, especially in the residential and commercial sectors that are keeping prices suppressed. As a result, natural gas prices are likely to remain under pressure in the short term, unless there is a significant uptick in demand driven by colder weather or other unexpected factors.

Liquified Natural Gas (LNG) prices face ongoing pressure as a new wave of export capacity is set to come online starting in 2026. The IEA projects global LNG production capacity will increase from the current 20,480 bcf per year to 30,000 bcf by 2030. However, demand may struggle to keep up with this oversupply, partly due to the growing shift toward renewable energy, which could drive natural gas prices significantly lower. The IEA also warns that if governments intensify their emission reduction efforts, some of the new LNG export projects may become unprofitable.

We need to burn more natural gas for clean power generation.  The more natural gas that we burn, the more LPG’s we produce.  Great for the environment, rail and the U.S. consumer.

We Are Watching Key Economic Indicators

Industrial Capacity and Utilization

In September 2024, U.S. industrial production saw a modest decline of 0.3%, following a 0.3% increase in August. This drop reflects ongoing fluctuations throughout the year. Manufacturing output, which makes up a significant portion of total production, also declined by 0.5% in September, after a slight rise in August. This marks continued volatility across key sectors, such as automotive production, which faced a 1.8% decline due to supply chain disruptions.

Capacity utilization, a measure of how fully firms are using their resources, decreased to 77.5%, down from 77.8% in August. The capacity utilization rate for manufacturing fell slightly to 76.7%, continuing its downward trend for the third consecutive month.

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 months. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in the Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Years. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5 years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tanks needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 10-21-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending October 5th came in at 258,000, up 33,000 people week-over-week.

• Continuing jobless claims came in at 1.826 million people, versus the adjusted number of 1.861 million people from the week prior, up 42,000 people week-over-week.

Stocks closed higher on Friday of last week and higher week over week

The DOW closed higher, on Friday of last week up 409.74 points (0.97%), closing out the week at 42,863.86, up 538.12 points week-over-week. The S&P 500 closed higher on Friday of last week, up 34.98 points and closed out the week at 5,815.03, up 63.96 points week-over-week. The NASDAQ closed higher on Friday of last week, up 60.89 points (0.34%) and closed out the week at 18,342.94, up 205.09 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 43,115 this morning down -28 points.

Crude oil closed down on Friday of last week, but up week over week.

West Texas Intermediate (WTI) crude closed down -$0.29 per barrel (-0.38%) to close at $75.56 per barrel on Friday of last week, up $1.18 per barrel week over week. Brent traded down -$0.04 USD per barrel (-0.45%) on Friday of last week, to close at $79.04 per barrel, up $0.99 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for November delivery settled Friday on last week at US$10.95 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 63.97 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 5.8 million barrels week-over-week. At 422.7 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 6.3 million barrels week-over-week and are 4% below the five-year average for this time of year.

Distillate fuel inventories decreased by 3.1 million barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories increased by 1.9 million barrels week-over-week and are 9% above the five-year average for this time of year.

Propane prices closed at 77 cents per gallon on Friday of last week, up 14 cents per gallon week-over-week and up 7 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 8.1 million barrels during the week ending October 4th, 2024.

U.S. crude oil imports averaged 6.2 million barrels per day during the week ending October 4th, 2024, a decrease by 389,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.4 million barrels per day, 2.5% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 48,000 barrels per day, and distillate fuel imports averaged 104,000 barrels per day during the week ending October 4th, 2024.

U.S. crude oil exports averaged 3.794 million barrels per day during the week ending October 4th, 2024, a decrease of -84,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 4.04 million barrels per day.

U.S. crude oil refinery inputs averaged 15.6 million barrels per day during the week ending October 04, 2024, which was 101,000 barrels per day less week-over-week.

WTI is poised to open at $73.57, down $1.99 per barrel from Friday’s close.

North American Rail Traffic

Week Ending October 9th, 2024.

Total North American weekly rail volumes were down (-2.15%) in week 41, compared with the same week last year. Total carloads for the week ending on October 9th were 348,322, down (-3.62%) compared with the same week in 2023, while weekly intermodal volume was 329,611, down (-0.55%) compared to the same week in 2023. 7 of the AAR’s 11 major traffic categories posted year-over-year decreases. The most significant decrease came from Nonmetallic Minerals, which was down (-8.63%). The most significant increase came from Farm Products which was up (+6.96%).

In the East, CSX’s total volumes were down (-12.63%), with the largest decrease coming from Intermodal (-20.94%) while the largest increase came from Petroleum and Petroleum Products (+30.18%). NS’s volumes were down (-9.05%), with the largest increase coming from Other (+14.68%), while the largest decrease came from Intermodal (-14.29%).

In the West, BN’s total volumes were up (+5.21%), with the largest increase coming from Intermodal (+11.13%) while the largest decrease came from Forest Products, down (-7.47%). UP’s total rail volumes were up (+7.05%) with the largest decrease coming from Grain, down (-18.76%), while the largest increase came from Intermodal, which was up (+18.86%).

In Canada, CN’s total rail volumes were down (-10.92%) with the largest decrease coming from Coal, down (-36.14%) while the largest increase came from Other, up (+13.35%). CP’s total rail volumes were down (-2.93%) with the largest increase coming from Other (+50%), while the largest decrease came from Motor Vehicles and Parts (-17.87%). KCS’s total rail volumes were down (-8.96%) with the largest decrease coming from Other (-39.76%) and the largest increase coming from Grain (+67.7%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was up by 1 rig week-over-week. U.S. rig count was up by 1 rig week-over-week, but down by -36 rigs year-over-year. The U.S. currently has 586 active rigs. Canada’s rig count was flat week over week but up by 30 rigs year-over-year and Canada’s overall rig count is 223 active rigs. Overall, year over year we are down by -6 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We continue to watch a lot out there for you folks.  PFL and its staff were taken out by Hurricane Milton last week.  We are pleased to inform our followers that all staff from our Naples Florida head office are safe.  The office and staff did, however,  face power interruptions, hence the shortened report this week.  We are also pleased to inform you that we are all back up and running and will return to normal reporting this week and on a go-forward basis!

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 28,523 from 28,272, which was a gain of 252 rail cars week-over-week.  Canadian volumes were mixed. CPKC’s shipments fell by 4.9% week over week, and CN’s volumes were higher by 4.6% week-over-week. U.S. shipments were mixed higher. The CSX had the largest percentage increase, which was 17.7%.  The UP had the largest percentage decrease and was down by +4.4%.

We Continue to Watch Key Economic Data

U.S Unemployment

The September 2024 jobs report from the Bureau of Labor Statistics showed a significant increase in employment, with 336,000 new jobs created, surpassing expectations. This marked the strongest job growth in several months. Notable sectors contributing to this increase included leisure and hospitality, health care, and government.

Meanwhile, the unemployment rate decreased 0.1% to 4.2% month over month. Additionally, job openings remained high, reflecting strong demand for labor across various sectors.

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tank s needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 10-14-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending September 28th came in at 225,000, up 6,000 people week-over-week.

• Continuing jobless claims came in at 1.826 million people, versus the adjusted number of 1.827 million people from the week prior, down -1,000 people week-over-week.

Stocks closed higher on Friday of last week and higher week over week

The DOW closed higher, on Friday of last week up 341.16 points (0.81%), closing out the week at 42,352.75, up 39.75 points week-over-week. The S&P 500 closed higher on Friday of last week, up 51.13 points and closed out the week at 5,751.07, up 12.9 points week-over-week. The NASDAQ closed higher on Friday of last week, up 219.38 points (1.21%) and closed out the week at 18,137.85, up 18.26 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 42,434 this morning down -212 points.

Crude oil closed higher on Friday of last week and is up week over week.

West Texas Intermediate (WTI) crude closed up $0.67 per barrel (0.9%) to close at $74.38 per barrel on Friday of last week, up $6.20 per barrel week over week. Brent traded up $0.43 USD per barrel (0.6%) on Friday of last week, to close at $78.05 per barrel, up $6.07 per barrel week-over-week. One Exchange WCS (Western Canadian Select) for November delivery settled Friday on last week at US$12.75 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 60.27 per barrel.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.9 million barrels week-over-week. At 416.9 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories increased by 1.1 million barrels week-over-week and are 1% below the five-year average for this time of year.

Distillate fuel inventories decreased by 1.3 million barrels week-over-week and are 8% below the five-year average for this time of year.

Propane/propylene inventories increased by 300,000 barrels week-over-week and are 7% above the five-year average for this time of year.

Propane prices closed at 63 cents per gallon on Friday of last week, down 3 cents per gallon week-over-week and down 6 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 900,000 barrels during the week ending September 27, 2024.

U.S. crude oil imports averaged 6.6 million barrels per day during the week ending September 27, 2024, an increase of 171,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged about 6.6 million barrels per day, 4.6% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 540,000 barrels per day, and distillate fuel imports averaged 194,000 barrels per day during the week ending September 27, 2024.

U.S. crude oil exports averaged 3.878 million barrels per day during the week ending September 27th, 2024, a decrease of -19,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.917 million barrels per day.

U.S. crude oil refinery inputs averaged 15.7 million barrels per day during the week ending September 27, 2024, which was 662,000 barrels per day less week-over-week.

WTI is poised to open at $76.09, up  $1.71 per barrel from Friday’s close.

North American Rail Traffic

Week Ending October 2nd, 2024.

Total North American weekly rail volumes were up (+1.19%) in week 40, compared with the same week last year. Total carloads for the week ending on October 2nd were 349,211, down (-3.05%) compared with the same week in 2023, while weekly intermodal volume was 349,344, up (+5.81%) compared to the same week in 2023. 6 of the AAR’s 11 major traffic categories posted year-over-year decreases. The most significant decrease came from Coal, which was down (-10.72%). The most significant increase came from Motor Vehicles and Parts which was up (+9.95%).

In the East, CSX’s total volumes were down (-3.37%), with the largest decrease coming from Coal (-14.15%) while the largest increase came from Motor Vehicles and Parts (+9.67%). NS’s volumes were down (-1.54%), with the largest increase coming from Grain (+28.66%), while the largest decrease came from Petroleum and Petroleum Products (-14.66%).

In the West, BN’s total volumes were up (+7.21%), with the largest increase coming from Grain (+29.95%) while the largest decrease came from Nonmetallic Minerals, down (-12.04%). UP’s total rail volumes were up (+5.06%) with the largest decrease coming from Coal, down (-18.81%), while the largest increase came from Motor Vehicles and Parts, which was up (+17.7%).

In Canada, CN’s total rail volumes were down (-7.02%) with the largest decrease coming from Coal, down (-23.79%) while the largest increase came from Grain, up (+36.07%). CP’s total rail volumes were down (-3.62%) with the largest increase coming from Motor Vehicles and Parts (+74.03%), while the largest decrease came from Metallic Ores and Metals (-50.83%). KCS’s total rail volumes were down (-11.76%) with the largest decrease coming from Other (-26.27%) and the largest increase coming from Motor Vehicles and Parts (+47.24%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was up by 3 rigs week-over-week. The U.S. rig count was down by -2 rigs week-over-week, and down by -34 rigs year-over-year. The U.S. currently has 585 active rigs. Canada’s rig count was up 5 rigs week-over-week and up by 43 rigs year-over-year and Canada’s overall rig count is 223 active rigs. Overall, year over year we are up 9 rigs collectively.

International rig count was up by 16 rigs month-over-month and up by 7 rigs year-over-year. Internationally there are 947 active rigs.

North American Rig Count Summary

A few things we are watching:

We are watching industry conferences

Folks, PFL was a proud APP sponsor and had a table and attended in full force this fall’s SWARS rail conference last week in Houston, Texas.  Curtis Chandler, Brian Baker and David Cohen were there representing PFL.  It was a great conference, one of our favorites with 925 people registered and many more hanging out in the hotel for onsite meetings. The mood was upbeat with everyone experiencing high utilization rates and deals were made.  For more information regarding SWARS, please call the desk at 239-390-2885.   

 Next week we will be at the well-attended tank car committee meeting in Dallas.

 We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads fell to 28,272 from 28,487, which was a loss of 215 rail cars week-over-week.  Canadian volumes were higher. CPKC’s shipments rose by 0.4% week over week, CN’s volumes were higher by 3.2% week-over-week. U.S. shipments were mixed higher. The NS was the largest percentage decrease and was down 14.7%.  The UP had the largest percentage increase and was up by +5%.

We are watching Hurricane Milton

Milton is expected to have maximum sustained winds of 110 mph around the time it makes landfall on the Gulf coast of Florida by Wednesday – between Fort Myers and just north of Tampa. As a Category 4 hurricane according to the National Hurricane Center 4:00 am update.  Key messages from the hurricane center:

1)    Hurricane conditions are expected across portions of the northern Yucatan Peninsula.  A dangerous storm surge with damaging waves is also likely along portions of the coast of the northern coast of the Yucatan Peninsula.

2)    There is an increasing risk of life-threatening storm surges and damaging winds for portions of the west coast of the Florida Peninsula beginning Tuesday night or early Wednesday.  Storm surge and Hurricane watches are now in effect for positions on the west coast in that area should follow any advice given by local officials and evaluate if told to do so.

3)    Arears of heavy rainfall will impact portions of Florida today ahead of Milton with heavy rainfall more directly related to the system expected later Tuesday through Wednesday night.  This rainfall will bring the risk of considerable flash, urban, and areal flooding, along with the potential for moderate to major river flooding.

Projected Hurricane Path as of 5:00 AM EST

We Were Watching the U.S. East and Gulf Coast Ports Strike

A recent strike by dockworkers on U.S.’s East and Gulf Coasts, which disrupted ocean shipping, ended on Thursday of last week, but the underlying issue of automation remains unresolved. The strike, involving around 45,000 workers from the International Longshoremen’s Association (ILA), was called off after a tentative wage agreement was reached, including a 62% wage increase. Both sides agreed to extend their contract until January 15, 2025, while continuing negotiations on a new six-year labor deal. A key sticking point remains automation, which unions view as a threat to jobs, while companies see it as a path to greater efficiency and throughput.  January 15th  will get us through Christmas and the election but expect more on this one.

“We got to keep fighting automation and semi-automation,” said ILA leader Harold Daggett during the strike in New Jersey, where workers held signs reading, “Machines don’t feed families” and “Fight automation, save jobs.” The ILA argues that the use of automated systems, like the gate system at a port in Mobile, Alabama, violates their contract. APM Terminals, the port operator, insists the system has been in place since 2008 and complies with their agreement.

Similar labor disputes over automation have emerged in Canada, where the International Longshore and Warehouse Union (ILWU) has rejected proposals tied to automation at Vancouver ports. “Workers are challenging automation because they know the negative effects that disappearing jobs have on our families and communities,” said a spokesperson for the ILWU.

As East and Gulf Coast ports resume operations, entrepreneur and “Shark Tank” star Kevin O’Leary weighed in on the situation, criticizing the inefficiency of U.S. ports. “The trouble with East Coast ports is they’re very old, they’re very inefficient,” O’Leary said on “Varney & Co.” He compared them unfavorably to modern ports in Asia, such as Singapore, which he argued are much more productive.

O’Leary also sees automation as a necessary step, arguing that “there’s zero evidence” that automating ports on the East and West Coasts would hurt wages. Instead, he suggested it could lead to wage growth for workers trained to operate advanced systems, stating, “Automation helps job creation and helps the value of wage growth.”

Eric Hoplin, CEO of the National Association of Wholesaler-Distributors, echoed O’Leary’s view, calling union demands against automation “unrealistic.” He noted that major ports worldwide, including those in Shanghai, Rotterdam, and Singapore, have embraced automation, while U.S. ports lag behind by “three decades.”

The recent strike raised concerns about potential disruptions to the U.S. supply chain. An analysis by JPMorgan estimated that each day of the strike could have cost the U.S. economy between $3.8 and $4.5 billion, as operations slowed across the affected ports.  If you ask us, Biden called in a favor – the next President of the U.S. whoever it is will have to deal with this mess in the New Year.

We Are Watching Key Economic Indicators

Purchasing Managers Index (PMI)

The Institute for Supply Management releases two PMI reports – one covering manufacturing and the other covering services. These reports are based on surveys of supply managers across the country and track changes in business activity. A reading above 50% on the index indicates expansion, while a reading below 50% signifies contraction, with a faster pace of change the farther the reading is from 50.

The ISM Manufacturing PMI for September 2024 was 47.2, unchanged from August and slightly below expectations of 47.5. This marks the sixth consecutive month of contraction in the manufacturing sector. 

Lease Bids

• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 50, 23.5-25.5 DOT111 Tank s needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 40, 33K, 340W Pressure Tanks located off of Multiple in All over.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 10-7-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending September 21st came in at 218,000, down -4,000 people week-over-week.

• Continuing jobless claims came in at 1.834 million people, versus the adjusted number of 1.821 million people from the week prior, up 13,000 people week-over-week.

Stocks closed mixed on Friday of last week, but higher week over week

The DOW closed higher, on Friday of last week up 137.89 points (0.33%) , closing out the week at 42,313, up 249.64 points week-over-week. The S&P 500 closed lower on Friday of last week, down -7.2 points and closed out the week at 5,738.17, up 35.62 points week-over-week. The NASDAQ closed lower on Friday of last week, down -70.7 points (-0.39%) and closed out the week at 18,119.59, up 171.27 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 42,628 this morning down 28 points.

Crude oil closed higher on Friday of last week, but down week over week.

West Texas Intermediate (WTI) crude closed up $0.51 per barrel (0.75%) to close at $68.18 per barrel on Friday of last week, down $3.74 per barrel week over week. Brent traded up $0.38 USD per barrel (0.53%) on Friday of last week, to close at $71.98 per barrel,  down $-2.51 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for November delivery settled Friday on last week at US$13.30 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 53.79 per barrel. 

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.5 million barrels week-over-week. At 413.0 million barrels, U.S. crude oil inventories are 5% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 1.5 million barrels week-over-week and are 1% below the five-year average for this time of year.

Distillate fuel inventories decreased by 2.2 million barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories decreased by 1.5 million barrels week-over-week and are 9% above the five-year average for this time of year.

Propane prices closed at 66 cents per gallon on Friday of last week, up 2 cents per gallon week-over-week and down 6 cents per gallon year-over-year.

Overall, total commercial petroleum inventories decreased by 14.6 million barrels during the week ending September 20, 2024.

U.S. crude oil imports averaged 6.5 million barrels per day during the week ending September 20, 2024, an increase of 135,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.4 million barrels per day, 9.5% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 746,000 barrels per day, and distillate fuel imports averaged 102,000 barrels per day during the week ending September 13, 2024.

U.S. crude oil exports averaged 3.897 million barrels per day for the week ending September 20th, 2024, a decrease of -692,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.887 million barrels per day.

U.S. crude oil refinery inputs averaged 16.4 million barrels per day during the week ending September 20, 2024, which was 124,000 barrels per day less week-over-week.

WTI is poised to open at 68.15, up 3 cents per barrel from Friday’s close.

North American Rail Traffic

Week Ending September 25th, 2024.

Total North American weekly rail volumes were up (+4.87%) in week 39, compared with the same week last year. Total carloads for the week ending on September 25th were 353,603, down (-0.93%) compared with the same week in 2023, while weekly intermodal volume was 359,156, up (+11.29%) compared to the same week in 2023. 7 of the AAR’s 11 major traffic categories posted year-over-year increases. The most significant decrease came from Metallic Ores and Metals, which was down (-13.31%). The most significant increase came from Grain which was up (+11.97%).

In the East, CSX’s total volumes were up (+1.65%), with the largest decrease coming from Metallic ores and Metals (-10.87%) while the largest increase came from Grain (+25.73%). NS’s volumes were up (+11.2%), with the largest increase coming from Other (+25.09%), while the largest decrease came from Farm Products (-0.8%).

In the West, BN’s total volumes were up (+6.95%), with the largest increase coming from Grain (+19.76%) while the largest decrease came from Metallic Ores and Minerals, down (-22.98%). UP’s total rail volumes were up (+6.62%) with the largest decrease coming from Nonmetallic Minerals, down (-19.69%), while the largest increase came from Intermodal, which was up (+19.63%).

In Canada, CN’s total rail volumes were down (-10.81%) with the largest decrease coming from Coal, down (-36.61%) while the largest increase came from Nonmetallic Minerals, up (+14.64%). CP’s total rail volumes were down (-2.85%) with the largest increase coming from Other (+58.33%), while the largest decrease came from Metallic Ores and Metals (-44.33%).

KCS’s total rail volumes were down (-4.24%) with the largest decrease coming from Intermodal (-17.56%) and the largest increase coming from Farm Products (+61.93%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was up by 6 rigs week-over-week. The U.S. rig count was down by -1 rigs week-over-week, and down by -36 rigs year-over-year. The U.S. currently has 587 active rigs. Canada’s rig count was up 7 rigs week-over-week and up by 27 rigs year-over-year and Canada’s overall rig count is 218 active rigs. Overall, year over year we are down -9 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are Watching East Coast ports as longshoremen prepare to strike

Thousands of longshoremen at ports from New England to Texas are set to strike early Tuesday in the first walkout of its kind in almost half a century, freezing commercial shipping on a massive scale and disrupting the national economy weeks before the presidential election.

A strike would be the biggest disruption to the flow of goods in and out of the country since the height of the pandemic. Even a short-lived work stoppage would snarl shipping and create havoc in supply chains for weeks. Cargo ranging from cars to electronics, from food to furniture, would be stuck on ships offshore. Each day a strike lasts could cost the U.S. economy up to $1 billion, according to analysts.  The current labor contract expires Monday night, freeing the union to strike Tuesday as early as 12:01 a.m. as it presses for substantial raises and stronger guarantees that automated systems will not be used to replace workers.

During the strike, the East Coast union said it would continue to move military cargo and handle cruise ships, to not affect people’s vacations. Ships carrying oil and gas are served by dedicated facilities with crews who would not be on strike; gasoline and fuel oil prices are not expected to be affected.  A disruption to rail could be significant.  Stay tuned to PFL we are watching this one closely.

We are watching industry conferences

Folks, PFL had a table and attended the NEARS Rail Conference last week in Pittsburgh.  It was a great conference but was cut short by some due to travel disruptions due to Hurricane Helene.  Jacque Bendon, SVP at the UP, highlighted the war on Coal that we all knew was going on, however, the rail traffic slow down as a result is even deeper than we thought.  The UP now ships only 10 unit trains of coal per day from 50 unit trains per day.  With coal unit trains averaging 130 rail cars, that is a decrease of 5,200 loaded cars per day.  Despite the decrease in coal across the country’s entire network,  rail traffic has resiliently been higher with grain shipments and intermodal filling in part of that gap.  Other speakers included Jason Trompeter (AVP of Market Research from the NS), Colby Tanner (VP of Industrial Products at the BN), and Michael Miller (President at Genesee & Wyoming).  

This week, PFL will be attending SWARS in Houston and is the APP Sponsor of the event – we will also have a table so please stop by and see us.  Next, we will be at the well-attended tank car committee meeting in Dallas.

We were watching Hurricane Helene

What a devastating Hurricane  Helene turned out to be.  The storm made landfall in Florida’s Big Bend region as a Category 4 storm on Thursday of last week at 11:10 p.m. Emergency services were rescuing people trapped by fast-rising waters.

More than 3.8 million customers were without power as of Saturday of last week across Florida, Georgia, South Carolina, North Carolina, Tennessee, Virginia, West Virginia, Kentucky, Ohio, and Illinois and some of those outages could last for weeks. 

Current Power Outages Hurricane Helene

Source: Power outages USA – PFL Analytics

As of Sunday evening, at least 95 people have lost their lives to the storm and that number is rising as over 600 people are confirmed missing.

Roughly 24% of crude oil production and 18% of natural gas output in the U.S. Gulf of Mexico was shut in in response to Hurricane Helene, the U.S. Bureau of Safety and Environmental Enforcement said on Friday of last week.

Oil and natural gas production losses fell, peaking at a loss of production at 511,000 barrels on Wednesday of last week.  Energy producers had shut in 427,000 barrels per day of oil production and nearly 343 million cubic feet of natural gas from Gulf waters, the bureau said.

Nine oil and gas platforms were evacuated as of Friday of last week, roughly 2.4% of the Gulf of Mexico total, the offshore regulator said, citing reports from producers.

The U.S. Gulf of Mexico accounts for 15% of all domestic oil production and 2% of natural gas output, federal data showed.

Production is expected to be returned soon due to fast moving nature of the storm that limited damage.

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 28,487 from 27,768, which was a gain of 719 rail cars week-over-week.  Canadian volumes were mixed. CPKC’s shipments fell by 1.0% week over week, CN’s volumes were higher by 5.8% week-over-week. U.S. shipments were mostly higher. The CSX was the sole decliner and was down 7.8%.  The NS had the largest percentage increase and was up by +5%.

We are Watching Crude by Rail out of Canada

Crude by rail out of Canada decreased month over month. The Canadian Energy regulator reported on September 24th, 2024, that 83,201 barrels were exported during the month of July 2024 from 89,204 barrels in June of 2024 a decrease of 6,003 barrels per day month over month.

We continue to watch Key economic indicators

Consumer Confidence

Not surprisingly, the Conference Board’s Index of Consumer Confidence decreased to 98.7 in September from an upwardly revised 105.6 in August.

Consumer Spending

In August 2024, inflation-adjusted consumer spending increased by 0.1% over July, with a 0.2% rise in spending on services. Goods spending saw only a slight uptick of less than 0.1%. This marked a slowdown from the stronger 0.5% growth in July. The primary drivers of service spending increases were housing and financial services, while new motor vehicle purchases contributed to a decrease in goods spending. Year-over-year, consumer spending was up 2.2%, with services prices increasing 3.7%

Lease Bids

• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 50, 23.5-25.5 DOT111 Tank s needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term
• 50, 28.3K, 117R Tanks located off of All Class 1s in St. Louis. Cars are clean 1 Year Term

Sales Offers

• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 9-30-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending September 14th came in at 219,000, down -12,000 people week-over-week.

• Continuing jobless claims came in at 1.829 million people, versus the adjusted number of 1.843 million people from the week prior, down -14,000 people week-over-week.

Stocks closed mixed on Friday of last week, but higher week over week

The DOW closed higher, on Friday of last week up 38.17 points (0.09%), closing out the week at 42,063.36, up 669.59 points week-over-week. The S&P 500 closed lower on Friday of last week, down -11.09 points, and closed out the week at 5,702.55, up 76.53 points week-over-week. The NASDAQ closed lower on Friday of last week, down -65.66 points (-0.37%), and closed out the week at 17,948.32, up 264.34 points week over week.

In overnight trading, DOW futures traded higher and are expected to open at 42,450 this morning up 7 points.

Crude oil closed lower on Friday of last week, but higher week over week.

West Texas Intermediate (WTI) crude closed down -$0.30 per barrel (-0.4%) to close at $71.92 per barrel on Friday of last week, up $3.27 per barrel week over week. Brent traded down -$0.39 USD per barrel (-0.52%) on Friday of last week, to close at $74.49 per barrel, up $2.88 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for November delivery settled Friday on last week at US$13.50 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 56.56 per barrel. 

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.6 million barrels week-over-week. At 417.5 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories increased by 100,000 barrels week-over-week and are slightly below the five-year average for this time of year.

Distillate fuel inventories increased by 100,000 barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories increased by 2.3 million barrels week-over-week and are 11% above the five-year average for this time of year.

Propane prices closed at 64 cents per gallon on Friday of last week, down 6 cents per gallon week-over-week and down 13 cents per gallon year-over-year.

Overall, total commercial petroleum inventories increased by 3.4 million barrels week-over-week during the week ending September 13, 2024.

U.S. crude oil imports averaged 6.3 million barrels per day during the week ending September 13, 2024, a decrease of 545,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.4 million barrels per day, 7.1% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) 467,000 barrels per day, and distillate fuel imports averaged 138,000 barrels per day during the week ending September 13, 2024.

U.S. crude oil exports averaged 4.589 million barrels per day for the week ending September 13th, 2024, an increase of 1.284 million barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.83 million barrels per day.

U.S. crude oil refinery inputs averaged 16.5 million barrels per day during the week ending September 13, 2024, which was 283,000 barrels per day less week-over-week.

WTI is poised to open at $71.10, up  10 cents per barrel from Friday’s close.

North American Rail Traffic

Week Ending September 18th, 2024.

Total North American weekly rail volumes were up (+4.4%) in week 38, compared with the same week last year. Total carloads for the week ending on September 18th were 347,598, down (-2.05%) compared with the same week in 2023, while weekly intermodal volume was 58,213, up (+11.53%) compared to the same week in 2023. 7 of the AAR’s 11 major traffic categories posted year-over-year decreases. The most significant decrease came from Metallic Ores and Metals, which was down (-8.05%). The most significant increase came from Grain which was up (+16.98%).

In the East, CSX’s total volumes were up (+4.04%), with the largest decrease coming from Metallic ores and Metals (-9.91%) while the largest increase came from Grain (+25.32%). NS’s volumes were up (+6.55%), with the largest increase coming from Grain (+66.24%), while the largest decrease came from Petroleum and Petroleum Products (-9.71%).

In the West, BN’s total volumes were up (+8.89%), with the largest increase coming from Intermodal (+16.94%) while the largest decrease came from Motor Vehicles and Parts down (-10.27%). UP’s total rail volumes were up (+4.4%) with the largest decrease coming from Metallic Ores and Metals, down (-19.3%), while the largest increase came from Other which was up (+25.04%).

In Canada, CN’s total rail volumes were down (-5.39%) with the largest decrease coming from Metallic Ores and Metals, down (-15.15%) while the largest increase came from Other, up (+137.32%). CP’s total rail volumes were down (-7.81%) with the largest increase coming from Other (+50%), while the largest decrease came from Petroleum and Petroleum Products (-35.34%).

KCS’s total rail volumes were down (-13.35%) with the largest decrease coming from Intermodal (-28.76%) and the largest increase coming from Motor Vehicles and Parts (+68.99%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by 9 rigs week-over-week. The U.S. rig count was down by -2 rigs week-over-week, and down by -42 rigs year-over-year. The U.S. currently has 588 active rigs. Canada’s rig count was down -7 rigs week-over-week, but up by 21 rigs year-over-year. Canada’s overall rig count is 211 active rigs. Overall, year over year we are down -21 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads fell to 27,768 from 28,122, which was a loss of 354 rail cars week-over-week.  Canadian volumes were mixed. CN’s shipments fell by 1.0% week over week, CPKC’s volumes were higher by 1.2% week-over-week. U.S. shipments were mixed. The CSX had the largest percentage decrease and was down by -2.0%.  The NS had the largest percentage increase and was up by +13.7%.

We are watching untapped energy north of the border which remains idle

Remember when Keystone was axed on day 1 of Biden’s presidency?  Folks, one thing we don’t understand and talk about every day here at PFL is why are we buying any crude oil from Venezuela, the Saudis or the Europeans buying crude and natural gas from Russia for that matter.  We must just look North of Montana to Calgary, Alberta, and Canada.  That province much to the chagrin of their Federal Government would love to produce and sell any U.S. energy shortfall the U.S. has (not to leave out Saskatchewan right next door who would love to join the party too), and you don’t need the U.S. Navy to patrol the Great Lakes either like we are currently doing in the middle east.

In 2022 there was an energy crisis with the invasion of Ukraine – global markets have calmed since, however, geopolitical tensions have worsened, there is war in Europe and the Middle East, and things in the U.S. are seemingly out of control. Forming a North American energy alliance with Alberta/Saskatchewan as a tag-along is more important than ever.  However, a sector-by-sector cap-and-trade system designed to meet Canada’s Federal government’s 2030 ambitious greenhouse gas goals is threatening this increasingly important partnership.  

Even though the U.S. is the world’s largest oil and gas producer, it increasingly relies on Canada to supply refineries with much-needed heavy crude oil and keep power flowing to households and industry. In fact, growth in Canadian imports is an important factor driving America’s reduced reliance on OPEC countries, as it stands now Canada now accounts for 52% of U.S. petroleum imports. Meanwhile, virtually all natural gas coming into the U.S. comes from Canada, and it is also America’s primary supplier of electricity and important minerals such as uranium. In total, the two-way energy trade of oil, natural gas, electricity, and uranium reached a record total in 2023 of $156 billion USD. In total during 2023, the United States imported 8.51 million barrels per day (b/d) of petroleum from 86 countries. Petroleum includes crude oil, hydrocarbon gas liquids (HGLs), refined petroleum products such as gasoline and diesel fuel, and biofuels. Crude oil imports of about 6.48 million b/d accounted for about 76% of U.S. total gross petroleum imports.  The canceled Keystone pipeline at 1 million (b/d) would have reduced reliance on other countries by 15% overnight.  Let’s’ bring Keystone back, it is almost ready to go – it wouldn’t take much time!

Together, Canada and the U.S. have dominated global oil production growth in the past decade, creating an energy-secure North America while driving billions into innovation and technologies designed to lower emissions. Policy actions that limit production (something Justin may be contemplating) and export capacity could reverse this progress, leaving us and our allies more vulnerable. We must instead leverage our deeply interconnected energy systems and rock-solid commercial relationships in support of a North American Energy Security framework that will deliver benefits for decades to come.

It is easier said than done, unfortunately, Canada’s Prime Minister Justin is at war with Energy Companies in Canada and Canada has their own version of the Green New Deal – the underlying fundamentals of Canada’s Green New Deal is more or less the same – solar, wind electric cars…  If it was truly green, it would be one thing except wind and solar are not as once thought a great source of green energy.  Producing solar cells requires significant energy and the solar panels break down, and so do the inverters that run them, not to mention end-of-life disposal costs.  Windmills don’t make it to their full predicted life and come with many problems and affect wildlife.  The path moving forward seems to be key innovation at the pump, increasing efficiency in our automobiles through technology.  Electricity generation via cogeneration utilizing cheap clean-burning natural gas makes the most sense if you ask us.  We should continue with the deployment of emissions-reducing technologies to power oil and gas operations (such as carbon capture and storage (CCS) – injecting carbon in depleted oil reservoirs for enhanced oil recovery, waste heat recovery systems, and small modular reactors).  We just need a few tweaks to the system, not one that is going to create our own self-destruction.

We are Watching Microsoft and Constellation

In case you missed it – on Friday of last week Constellation issued in a press release that it signed its largest power purchase agreement ever, bringing back 3-mile island a deal that will restore TMI Unit 1 to service and keep it online for decades; add approximately 835 megawatts of carbon-free energy to the grid; create 3,400 direct and indirect jobs and deliver more than $3 billion in state and federal taxes.  They say “the signing of a 20-year power purchase agreement with Microsoft that will pave the way for the launch of the Crane Clean Energy Center (CCEC) and restart of Three Mile Island Unit 1, which operated at industry-leading levels of safety and reliability for decades before being shut down for economic reasons exactly five years ago today. Under the agreement, Microsoft will purchase energy from the renewed plant as part of its goal to help match the power its data centers in PJM use with carbon-free energy.”

 “This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon-negative. Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids’ capacity and reliability needs,” said Bobby Hollis, VP of Energy, Microsoft. 

A recent economic impact study commissioned by the Pennsylvania Building & Construction Trades Council found that the new CCEC will create 3,400 direct and indirect jobs and add more than 800 megawatts of carbon-free electricity to the grid. The report, produced by The Brattle Group, also found that restarting the plant will add $16 billion to the state’s GDP and generate more than $3 billion in state and federal taxes.

To ensure that the local community fully participates in the economic benefits of restarting the facility, Constellation has committed an additional $1 million in philanthropic giving to the region over the next five years to support workforce development and other community needs. The company had a strong relationship with Middletown and the surrounding communities over the 20 years that it operated the plant, with public safety as its No. 1 priority. Constellation is committed to making community outreach, engagement and dialogue cornerstones of its restart plan.

“Pennsylvania’s nuclear energy industry plays a critical role in providing safe, reliable, carbon-free electricity that helps reduce emissions and grow Pennsylvania’s economy,” said Governor Josh Shapiro. “Under the careful watch of state and federal authorities, the Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader. My Administration will continue to work to cut energy costs and ensure the reliability of our energy grid so that Pennsylvanians can have access to affordable power made right here in Pennsylvania for years to come – and the Crane Clean Energy Center will help us achieve those goals.” 

Whether or not Nuclear Energy is green and good for the environment is debatable – we still have a problem with spent nuclear waste, and end-of-life decommissioning creates an astronomical cost for the consumer. But, at least we are adding back some power to the grid. It worries us all the coal plants that are set to come offline. We don’t want to be in a situation like Germany and hopefully, we can learn from their mistakes, which were many on every front.– Stay tuned to PFL

We are watching Some Key Economic Indicators

Consumer Confidence

The Index of Consumer Sentiment from the University of Michigan increased from 68.7 in August to 69 in September.

Industrial Output & Capacity Utilization

In August 2024, U.S. industrial production rebounded with a 0.8% increase following a 0.9% decline in July. This was largely driven by a recovery in motor vehicle production, which surged by 9.8%, recovering from a sharp drop the previous month. Manufacturing output also rose by 0.9%, marking a notable improvement over earlier months. Despite these gains, nondurable manufacturing saw a slight decline of 0.2%.

Capacity utilization in the industrial sector improved to 78%, up from 77.4% in July. For the manufacturing sector specifically, capacity utilization increased to 77.2%, recovering from July’s 76.6%. While these are positive signs, capacity utilization remains slightly below its long-term average.

We are watching Class 1 Industry Headcount

Class I railroads employed 120,611 workers in the United States in August 2024, a -0.39% decrease from July 2024’s count of 121,085 and a -1.78% year-over-year decrease, according to Surface Transportation Board data.

Three of the six employment categories posted month-over-month increases between July and August. They were – executives, officials, and staff assistants, up +0.33% to 7,902 workers; transportation (other than train and engine), up -0.28% to 5,029; and maintenance of way and structures, down -0.43% to 28,985.

Categories that posted month-over-month decreases were transportation (train and engine), -0.31% to 51,845 employees; maintenance of equipment and stores, -0.54% to 17,082; and professional and administrative, -1.11% to 9,768.

Year over year, only one category posted an employment gain, which was transportation (other than train and engine) at +3.07%.

Categories that registered year-over-year decreases in August were maintenance of equipment and stores, -6.44%; professional and administrative, -5.41%; executives, officials, and staff assistants, -4.01%; maintenance of way and structures, -0.03%; and transportation (train and engine), -0.49%.

Lease Bids

• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 50, 23.5-25.5 DOT111 Tank s needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 50, 28.3K DOT 111 Tanks needed off of Any Class 1 in any location for 3-7 Years. Cars are needed for use in Base Oils service.
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas.
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service.
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 45, 33K, 340W Pressure Tanks located off of All Class Ones in North America. Cars were last used in Propane/Butane. Free move on CN or CP
• 50, 30K, DOT 117J Tanks located off of BN in Texas. Cars were last used in Ethanol. 1-2 Year Term.
• 90, 25.5K, DOT 111 Tanks located off of UP in Texas. Cars were last used in Fuel OIl. 2-3 Year Term

Sales Offers

• 24, 5300CF, Plate C Boxcars located off of NS or CSX in Southeast.
• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 7, 30K, DOT-111 Tanks located off of UP in CA and TX.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

Live Railcar Markets

PFL will be at the Following Conferences

The post PFL Railcar Report 9-23-2024 appeared first on PFL Petroleum Services LTD.

Jobs Update

• Initial jobless claims seasonally adjusted for the week ending September 7th came in at 230,000, up 2,000 people week-over-week.

• Continuing jobless claims came in at 1.85 million people, versus the adjusted number of 1.845 million people from the week prior, up 5,000 people week-over-week.

Stocks closed higher on Friday of last week and higher week over week

The DOW closed higher, on Friday of last week up 297.01 points (0.72%) closing out the week at 41,393.78 up 1,048.37 points week-over-week. The S&P 500 closed higher on Friday of last week, up 30.26 points and closed out the week at 5,626.02 up 217.60 points week-over-week. The NASDAQ closed higher on Friday of last week, up 114.3 points (0.68%) and closed out the week at 17,683.98 up 993.15 points week over week.

In overnight trading, DOW futures traded higher and are expected to open at 41,515 this morning up 88 points.

Crude oil closed lower on Friday of last week, but higher week over week.

West Texas Intermediate (WTI) crude closed down -$0.32 per barrel (-0.5%) to close at $68.65 per barrel on Friday of last week, up $0.98 per barrel week over week. Brent traded down -$0.36 USD per barrel (-0.5%) on Friday of last week, to close at $71.61 per barrel up $0.55 per barrel week-over-week.

One Exchange WCS (Western Canadian Select) for October delivery settled Friday on last week at US$13.85 below the WTI-CMA (West Texas Intermediate – Calendar Month Average). The implied value was US$ 54.09 per barrel. 

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 800,000 barrels week-over-week. At 419.1 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.

Total motor gasoline inventories increased by 2.3 million barrels week-over-week and are 1% below the five-year average for this time of year.

Distillate fuel inventories increased by 2.3 million barrels week-over-week and are about 8% below the five-year average for this time of year.

Propane/propylene inventories increased by 1.1 million barrels week-over-week and are 13% above the five-year average for this time of year. 

Propane prices closed at 70 cents per gallon on Friday of last week, down 6 cents week-over-week and down 4 cents per gallon year-over-year.

Overall, total commercial petroleum inventories increased by 9 million barrels week-over-week during the week ending September 6, 2024.

U.S. crude oil imports averaged 6.9 million barrels per day during the week ending September 6, 2024, an increase of 1.1 million barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.5 million barrels per day, 7.3% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 643,000 barrels per day, and distillate fuel imports averaged 201,000 barrels per day during the week ending September 6, 2024.

U.S. crude oil exports averaged 3.305 million barrels per day for the week ending September 6th, 2024, a decrease of -451,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 3.694 million barrels per day.

U.S. crude oil refinery inputs averaged 16.8 million barrels per day during the week ending September 6, 2024, which was 141,000 barrels per day less week-over-week.

WTI is poised to open at $68.99, up 34 cents per barrel from Friday’s close.

North American Rail Traffic

Week Ending September 11th, 2024.

Total North American weekly rail volumes were up (+5.86%) in week 37, compared with the same week last year. Total carloads for the week ending on September 11th were 344,262, up (1.38%) compared with the same week in 2023, while weekly intermodal volume was 319,427, up (+11.15%) compared to the same week in 2023. 7 of the AAR’s 11 major traffic categories posted year-over-year increases. The most significant decrease came from Motor Vehicles and Parts, which was down (-6.36%). The most significant increase came from Grain which was up (+26.86%).

In the East, CSX’s total volumes were up (+3.65%), with the largest decrease coming from Motor Vehicles and Parts (-10.95%) while the largest increase came from Grain (+22.71%). NS’s volumes were up (+6.56%), with the largest increase coming from Grain (+26.54%), while the largest decrease came from Metallic Ores and Metals (-3.72%).

In the West, BN’s total volumes were up (+11%), with the largest increase coming from Grain (+39.13%) while the largest decrease came from Forest Products down (-20.62%). UP’s total rail volumes were up (+7.26%) with the largest decrease coming from  Forest Products, down (-10.92%), while the largest increase came from Grain which was up (+31.67%).

In Canada, CN’s total rail volumes were down (-2.78%) with the largest decrease coming from Metallic Ores and Metals, down (-9.32%) while the largest increase came from Nonmetallic Minerals, up (+25.19%). CP’s total rail volumes were down (-7.01%) with the largest increase coming from Coal (+54.01%), while the largest decrease came from Intermodal, down (-32.16%). KCS’s total rail volumes were down (-9.19%) with the largest decrease coming from Coal (-29.88%) and the largest increase coming from Motor Vehicles and Parts (+34.99%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was up by 6 rigs week-over-week. The U.S. rig count was up by 8 rigs week-over-week, and down by -51 rigs year-over-year. The U.S. currently has 590 active rigs. Canada’s rig count was down -2 rigs week-over-week, and up by 28 rigs year-over-year and Canada’s overall rig count is 218 active rigs. Overall, year over year we are down -23 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 28,122 from 28,000, which was a gain of 122 rail cars week-over-week.  Canadian volumes were higher. CPKC’s shipments fell by -7.1% week over week and CN’s volumes were lower by -7.2% week-over-week. U.S. shipments were mixed   The CSX had the largest percentage decrease and was down by -6.2%.  The UP had the largest percentage increase and was up by +1.5%

We are watching Hurricane Francine and its impact in the Gulf  

According to The Bureau of Safety and Environmental Enforcement (“BSEE”), based on data from offshore operator reports submitted on Wednesday of last week (peak shut-in), personnel were evacuated from a total of 171 production platforms, 46% of the 371 manned platforms in the Gulf of Mexico. Production platforms are the offshore structures from which oil and natural gas are produced and transported to shore. By Saturday, personnel remained evacuated from 52 production platforms, 14% of the 371 manned platforms in the Gulf of Mexico.

Personnel were evacuated from 3 non-dynamically positioned (DP) rig(s), equivalent to 60% of the 5 rigs of this type currently operating in the Gulf. Rigs can include several types of offshore drilling facilities including jackup rigs, platform rigs, all submersibles, and moored semisubmersibles. By Saturday all personnel were restored back to the rigs.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing safety valves located below the surface of the ocean floor to prevent the release of oil or gas, effectively shutting in production from wells in the Gulf, and protecting the marine and coastal environments. Shutting in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, BSEE estimated that approximately 38.56% (roughly 760,00 barrels of oil per day) of the current oil production and 48.77% of the current natural gas production in the Gulf of Mexico was shut-in (roughly 1 bcf per day). The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BSEE compares to historical production reports to ensure the estimates follow a logical pattern. See below,  the interesting overlay where Hurricane Francine’s hurricane-force winds were plotted by BSEE over the gulf production platforms – the hurricane-force wind data was provided to BSEE by the National Hurricane Center.

 Production Platforms in the Gulf and Hurricane Francine Hurricane Force Winds

Source Data: BSEE – PFL Analytics

We are the U.S. Department of Energy 

Another week goes by and more government spending on the Green New Deal – it almost seems unstoppable at this point as we continue to spend money that we don’t have.  The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced on Friday of last week that up to $15 million in federal funding to support research and development (R&D) projects that help reduce methane emissions and “other and harmful environmental impacts from undocumented orphaned oil and natural gas wells” the DOE said in a press release. “The focus is on projects that advance cost-effective technologies toward commercialization that address characterization, advanced remediation techniques, and long-term monitoring of undocumented orphaned wells.” The DOE claims that “These technology innovations will help to further the Biden-Harris Administration’s goal to cut methane emissions by 30% compared with 2020 levels by 2030.” 

North America’s Continued Labor Disputes Supply Chains and Rail Could be Disrupted Yet Again 

In Canada, weeks after the Canadian Government ordered the CN and CPKC back to work, legal battles are still looming. The Teamsters filed four separate challenges on Thursday August 29^th in the Canadian Federal Court of Appeal challenging the labor minister’s order for binding arbitration and the Canada Industrial Relations Board (“CIRB”) decision to stop the lockout and work stoppage for CN and CPKC. There are two challenges for each railroad.  Now, workers at the port of Vancouver are threatening to strike.  The Port of Vancouver is Canada’s largest port for exporting commodities.  If a strike does occur rail traffic could be diverted to other Ports in Canada and the U.S, but rest assured rail traffic would be significantly impacted.

Also, Air Canada’s pilots almost went on strike before cutting a last-minute deal yesterday that would have halted all air cargo shipments on Thursday of this week. The airline was finalizing contingency plans for a phased shutdown of most operations, including passenger traffic.

Here in the U.S., firefighters are leaving their positions.  Federal firefighters say their employer is exacerbating exhaustion by misclassifying their jobs. In an extremely critical letter sent to top officials at the U.S. Forest Service and the United States Department of Agriculture, the National Federation of Federal Employees, the union that represents federal wildland firefighters, accused the agency of decades of wage theft and job misclassification.

The issue is among many – from a stalled pay raise to short staffing and escalating job hazards – that have contributed to severe burnout and struggles with recruitment and retention, just as fires become more difficult and dangerous to fight.

We have problems with our east coast ports here in the U.S. The International Longshoremen’s Association (ILA) is prepared to initiate an East Coast work stoppage at the ports that would essentially range from the Canadian border down to and including the Gulf Coast. After two days of meetings, the largest longshoremen’s union on the continent ended up with a unanimous vote to approve a strike beginning October 1 if their demands for a new contract aren’t met.

If a strike were to happen, it would have a catastrophic effect on the overall U.S. economy, experts say.  If the affected ports were to close, it would impact 43% of U.S. imports. The ports account for $3.7 billion per day.

As things stand now, the two sides don’t appear close to bridging the gap in negotiations, as the port owners, represented by the United States Maritime Alliance, suggest that the ILA is operating as though a strike is forthcoming.  An obvious significant impact to rail – let’s hope this one is averted.

Labor unrest seems to be everywhere folks, inflation has hit the middle class hard.  The problem is that as wages go up businesses will shutter in some instances,  and the price of everyday goods and services will continue to rise.  It is not a good situation we seem to be in.

We continue to watch Key Economic Indicators

The Producer Price Index

The Producer Price Index (PPI) for final demand rose by 0.2% in August. Prices for final demand services saw a 0.4% increase, while the index for final demand goods remained unchanged. Over the 12 months ending in August, final demand prices increased by 1.7%.

Lease Bids

• 10, 3250 thru hatch Hoppers needed off of BNSF in TX IL for 5 years. Cars are needed for use in Agg service.
• 10, 2500CF Open Top Hoppers needed off of UP or BN in Texas for 5 years. Cars are needed for use in aggregate service. Need Rapid Discharge Doors
• 20, 25.5k CPC 1232 Tanks needed off of UP or BN in OK, TX for 3 Year. Cars are needed for use in Asphalt service.
• 100, 25.5K DOT 111 Tanks needed off of Any Class 1 in Texas for 3 Years +. Cars are needed for use in Asphalt service.
• 25-30, 23.5K or 25.5K Dot 111 or CPC 1232 Tanks needed off of UP or BN in TX, OK, or AR for 3-5 Years. Cars are needed for use in Asphalt service. Needed ASAP., Lined or Unlined. Splash Load
• 50, 23.5-25.5 DOT111 Tank s needed off of Any Class 1 in USA for 5 years. Cars are needed for use in Asphalt service.
• 30, 17K-20K DOT117J Tanks needed off of UP or BN in Midwest/West Coast for 3-5 years. Cars are needed for use in Caustic service.
• 8, 28-30K any type Tanks needed off of UP BN in Texas and Gulf for 5 years. Cars are needed for use in Chlorobenzene service. must be lined with plasite 3070
• 250, 4000 Rapid Hoppers needed off of BNSF in TX IL for 5 years. Cars are needed for use in Coal service. in rotary/rapid cars with the electric dumping shoe
• 50, 30K 117 Tanks needed off of BNSF or UP in TX for 3-6 Months. Cars are needed for use in Crude service. will look at smaller cars. Prefer short term would look at longer term. Domestic use only
• 200, 30K any type Tanks needed off of UP or BN in Texas for RD. Cars are needed for use in Dirty service.
• 10, 5250 Covered Hoppers needed off of UP or BN in Midwest for up to 5 years. Cars are needed for use in Dry Edible Beans service.
• 25-50, 5000CF-5100CF Covered Hoppers needed off of BNSF, CSX, KCS, UP in Gulf LA for 3-10 years. Cars are needed for use in Dry sugar service. 3 bay gravity dump, Hempel 37700
• 10, 25.5 117J Tanks needed off of All class ones in Chicago for 1 Year. Cars are needed for use in Epoxy Resin service. 5 years
• 20, 4750’s Through Hatch Covered Hoppers needed off of UP BN in USA West for 3 years. Cars are needed for use in Fertilizer service.
• 150, 23.5K DOT111 Tanks needed off of any class 1 in LA for 2-3 years. Cars are needed for use in Fluid service. Needed July
• 25, 3230 PD Hoppers needed off of NS or CSX in Ohio for 5 years. Cars are needed for use in Flyash service.
• 10, 30k any type Tanks needed off of UP BN in Texas for 1 year plus. Cars are needed for use in Fuel Oil service.
• 10, 30K 117R or 117J Tanks needed off of Any Class 1 in USA for 1 year. Cars are needed for use in Glycerin service.
• 15, 28.3K DOT117J Tanks needed off of any class 1 in any location for 3 years. Cars are needed for use in Glycerin & Palm Oil service.
• 30-50, 23.5K Any Type Tanks needed off of any class 1 in any location for 1-5Years. Cars are needed for use in Glycols service.
• 25, 25.5K DOT 111 Tanks needed off of UP in LA for 1-5 Years. Cars are needed for use in Lubricant service.
• 25, 20.5K CPC1232 or DOT117J Tanks needed off of BNSF or UP in the west for 3-5 years. Cars are needed for use in Magnesium chloride service. SDS onhand
• 100, 15.5K DOT 111 Tanks needed off of Any Class 1 in USA for 1-3 Years. Cars are needed for use in Molten Sulfur service.
• 30, 4750-5200 Covered Hoppers needed off of BN or UP in Lake Charles, LA for 5 Years. Cars are needed for use in Pet Coke service.
• 100, 5200 Covered Hoppers needed off of UP or BN in Northwest for 6 month. Cars are needed for use in Pet Coke service. Roud Hatch, Bottom Outlet Doors
• 15-20, 29K 117R Tanks needed off of NS or CSX in Ohio for 6-12 Months. Cars are needed for use in Ply Oil service.
• 4, 6260 Covered Hoppers needed off of CSX in Bostick, NC for 2-4 Years. Cars are needed for use in Polypropene Pellets service.
• 10, 25.5K-28.3K DOT 111 Tanks needed off of UP or BN in Houston for 2 Year. Cars are needed for use in Resin service.
• 10, 5200cf PD Hoppers needed off of UP in Colorado for 1-3 years. Cars are needed for use in Silica service. Call for details
• 14, 23.5K DOT111 Tanks needed off of UP in Morrilton, AR for 1 year. Cars are needed for use in Turpentine service.

Sales Bids

• 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Cement service. Cement Gates needed.
• 10, 2770 Mill Gondolas needed off of any class 1 in St. Louis. Cars are needed for use in Cement service.
• 20-30, 3000 – 3300 PD Hoppers needed off of BN or UP preferred in West. Cars are needed for use in Cement service. C612
• 20, 17K DOT111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
• 2-4, 28K DOT111 Tanks needed off of BNSF Preferred in Minnesota. Cars are needed for use in Biodiesel service. Coiled and insulated
• 100, 15.7K DOT111 Tanks needed off of CSX or NS in the east. Cars are needed for use in Molten Sulfur service.
• 30, 17K-20K DOT111 Tanks needed off of UP or BN in Texas. Cars are needed for use in UAN service.
• 5, 30K DOT 111 Tanks needed off of in US. Cars are needed for use in Fuels service.
• 4, 25.5K DOT 111 Tanks needed off of any class 1 in Texas. Negotiable
• 10, 30K DOT 111 Tanks needed off of any class 1 in Texas. Cars are needed for use in UCO service. Negotiable
• 10, 5600CF PD Hoppers needed off of any class 1 in Texas.
• 50, 4750CF Covered Hoppers needed off of any class 1 in Texas. Cars are needed for use in Grain service.

Lease Offers

• 50, 5400, Covered Hoppers located off of NS, IORY in MI. Cars were last used in bean meal. 1 year+
• 45, 33K, 340W Pressure Tanks located off of All Class Ones in North America. Cars were last used in Propane/Butane. Free move on CN or CP
• 50, 30K, DOT 117J Tanks located off of BN in Texas. Cars were last used in Ethanol. 1-2 Year Term.

Sales Offers

• 24, 5300CF, Plate C Boxcars located off of NS or CSX in Southeast.
• 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations. Sand Cars
• 19, 4400, Rotary Gondolas located off of UP and BN in California and Wyoming.
• 150, 28.3K, DOT117J Tanks located off of various class 1s in multiple locations. Will take 90K
• 300, 31.8K, CPC 1232 Tanks located off of BN in Texas.
• 7, 30K, DOT-111 Tanks located off of UP in CA and TX.

Call PFL today to discuss your needs and our availability and market reach. Whether you are looking to lease cars, lease out cars, buy cars, or sell cars call PFL today at 239-390-2885

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