Posted on by Curtis Chandler Posted in Railcar Report

“It does not matter how slowly you go as long as you do not stop.“ – Confucius

Jobs Update

  • Initial jobless claims seasonally adjusted for the week ending December 23rd, 2023 came in at 218,000, up 12,000 people week-over-week.
  • Continuing jobless claims came in at 1.875 million people, versus the adjusted number of 1.861 million people from the week prior, up 14,000 people week-over-week.

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

The DOW closed lower on Friday of last week, down -20.56 points (-0.06%), closing out the week at 37,689.54, up 303.57 points week-over-week. The S&P 500 closed lower on Friday of last week, down -13.52 points (-0.28%), and closed out the week at 4,769.83, up 15.20 points week-over-week. The NASDAQ closed lower on Friday of last week, down -83.78 points (-0.56%), and closed out the week at 15,011.35, up 18.38 points week-over-week.

In overnight trading, DOW futures traded lower and are expected to open at 37,995 this morning down 17 points.

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

WTI traded down $-0.12 per barrel (-17%) to close at $71.65 per barrel on Friday of last week, and down -$1.91 per barrel week-over-week. Brent traded down -US$0.11 per barrel (-0.14%) on Friday of last week, to close at US$77.04 per barrel, down -US$2.03 per barrel week-over-week.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 6.9 million barrels week-over-week. At 436.6 million barrels, U.S. crude oil inventories are 1% below the five-year average for this time of year.

Total motor gasoline inventories decreased by 600,000 barrels week-over-week and are 2% below the five-year average for this time of year.

Distillate fuel inventories increased by 800,000 barrels week-over-week and are 9% below the five-year average for this time of year.

Propane/propylene inventories decreased by 2.2 million barrels week-over-week and are 19% above the five-year average for this time of year.

Propane prices closed at 68 cents per gallon, up 1 cent week-over-week, flat year-over-year.

Overall, total commercial petroleum inventories decreased by 17.3 million barrels during the week ending December 22nd, 2023.

U.S. crude oil imports averaged 6.3 million barrels per day during the week ending December 22nd, 2023, a decrease of 415,000 barrels per day week-over-week. Over the past four weeks, crude oil imports averaged 6.7 million barrels per day, 8.2% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 521,000 barrels per day, and distillate fuel imports averaged 238,000 barrels per day during the week ending December 22nd, 2023.

U.S. crude oil exports averaged 3.915 million barrels per day for the week ending December 22nd, a decrease of 206,000 barrels per day week-over-week. Over the past four weeks, crude oil exports averaged 4.037 million barrels per day.

U.S. crude oil refinery inputs averaged 16.6 million barrels per day during the week ending December 22, 2023, which was 109,000 barrels per day more week-over-week.

WTI is poised to open at 73.39, up  1.74 per barrel from Friday’s close.

North American Rail Traffic

Week Ending December 27th, 2023.

Total North American weekly rail volumes were up (22.45%) in week 51, compared with the same week last year. Total carloads for the week ending on December 22nd, 2023 were 354,405, up (21.4%) compared with the same week in 2022, while weekly intermodal volume was 317,296, up (23.65%) compared to the same week in 2022. 11 of the AAR’s 11 major traffic categories posted year over year increases with the most significant increase from Motor Vehicles and Parts (+31.19%).

In the East, CSX’s total volumes were up (21.27%), with the largest increase coming from Motor Vehicles and Parts (+39.17%). NS’s volumes were up (+18.42%), with the largest increase coming from Motor Vehicles and Parts (+34.7%).

In the West, BN’s total volumes were up (+34.06%), with the largest increase coming from Coal (+61.28%). UP’s total rail volumes were up (+18.81%) with the largest increase coming from Petroleum and Petroleum Products (+32.75%).

In Canada, CN’s total rail volumes were up (18.66%) with the largest increase coming from Other (+52.33%) and the largest decrease coming from Grain (-34.28%). CP’s total rail volumes were up (40.25%) with the largest increase coming from Motor Vehicles and Parts (+89.37%).

KCS’s total rail volumes were down (-1.13%) with the largest decrease coming from Other (-37.31%) and the largest increase coming from Nonmetallic Minerals (+20.13%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -58 rigs week-over-week. U.S. rig count was up by +2 rigs week-over-week, but down by -157 rigs year-over-year. The U.S. currently has 622 active rigs. Canada’s rig count was down by -60 rigs week-over-week , flat year over year.  Canada’s overall rig count is 86 active rigs. Overall, year-over-year, we are down -157 rigs collectively.

North American Rig Count Summary

A few things we are watching:

We are Watching Canadian Crude by Rail

The Canadian Energy Regulator (“CER”) updated its monthly crude by rail numbers on December 28, 2023, (on their website it says December 18th , but we know it was a typo because we watch it like a hawk). For October 2023, Canada exported 145,881 barrels per day by rail (up by +1,267 barrels per day month over month) and continues to move higher.  This is now the sixth consecutive month-over-month increase and its highest reading since August of 2022.

We were expecting to see volumes continue to increase as producers continued to build inventory and are in need of a crude by rail outlet. Basis numbers continue to look favorable as Trans Mountain continues to get delayed.

 We are watching Class 1 Industry Headcount

Headcount at the Class 1’s was mostly higher in November while rail traffic was up dramatically in week 51 year over year – we, are starting to see increased levels of service. Hopefully, the trend continues as we head into 2024. Below is the latest and greatest:

We have been extremely busy at PFL with return-on-lease programs involving rail car storage instead of returning cars to a shop.  A quick turnaround is what we all want and need.   Railcar storage in general has been extremely active.  Please call PFL now at 239-390-2885 if you are looking for rail car storage, want to troubleshoot a return on lease scenario, or have storage availability.  Whether you are a car owner, lessor or lessee, or even a class 1 that wants to help out a customer we are here to “help you help your customer!”

Leasing and Subleasing has been brisk as economic activity picks up. Inquiries have continued to be brisk and strong Call PFL Today for all your rail car needs at 239-390-2885

Lease Bids

  • 50, Dot 111 Tanks needed off of UP or BN in Nevada or CA for 1 year. Cars are needed for use in Sulfuric Acid service. March or April
  • 8, 28-30K Any Tanks needed off of UP BN in Texas and Gulf for 5 years. Cars are needed for use in Chlorobenzene service. Need Magrods
  • 14, 23.5K Dot 111 Tanks needed off of UP in Morrilton, AR for 1 year. Cars are needed for use in Turpentine service.
  • 10, 30k any Tanks needed off of UP BN in Texas for 1 year plus. Cars are needed for use in Fuel Oil 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
  • 30-40, 28.3K 117R, 117J, DOT 111 Tanks needed off of UP in Iowa for 2-3 Years. Cars are needed for use in Feedstocks 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, 23.5-25.5 Dot 111 Tanks needed off of Any Class 1 in USA for 5 Years. Cars are needed for use in Asphalt service.
  • 75, 30K Any Tanks needed off of Any Class 1 in Chicago for December 23-May 24. Cars are needed for use in Gasoline service.
  • 25, 30K Any Tanks needed off of in Houston for December -June. Cars are needed for use in Diesel 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
  • 108, 28.3K Any Tanks needed off of CN in Canada for 1-3 Years. Cars are needed for use in Crude service.
  • 20-25, 30K 117 Tanks needed off of UP or BN in Illinois for 5 Years. Cars are needed for use in Ethanol service.
  • 100, 28.3K Any Tanks needed off of UP or BN in Midwest/Texas for 5 Years. Cars are needed for use in Veg Oils / Biodiesel service. Need to be Unlined
  • 50-100, 4550 Covered Hoppers needed off of UP or BN in Texas for 5 Years. Cars are needed for use in Grain service.
  • 10, 33K 340W Pressure Tanks needed off of CN in LA for 1 Year. Cars are needed for use in Butane service.
  • 25, 20.5K CPC1232 or 117J 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
  • 25-50, 25.5K 117J Tanks needed off of NS CSX in Northeast for 5 Years. Cars are needed for use in Asphalt / Heavy Fuel Oil service.
  • 15, 28.3K 117J Tanks needed off of any class 1 in any location for 3 years. Cars are needed for use in Glycerin & Palm Oil service.
  • 30, 17K-20K 117J Tanks needed off of UP or BN in the Midwest/West Coast for 3-5 Years. Cars are needed for use in Caustic service.
  • 150, 23.5K DOT 111 Tanks needed off of any class 1 in LA for 2-3 Years. Cars are needed for use in Fluid service. Needed July
  • 25-50, 32K 340W Pressure Tanks needed off of NS or CSX in Marcellus for 1-2 Years. Cars are needed for use in Propane service. Q1
  • 25-50, 30K DOT 111, 117, CPC 1232 Tanks needed off of CN or CP in WI, Sarnia for 1-2 Years. Cars are needed for use in Diesel service. Q2-Q3
  • 10, 28.3K DOT 111, 117, CPC 1232 Tanks needed off of UP or BN in Iowa for 2 Years. Cars are needed for use in Biodiesel 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

Sales Bids

  • 100, Plate F Boxcars needed off of BN or UP in Texas.
  • 10, 2770 Mill Gondolas needed off of any class 1 in St. Louis. Cars are needed for use in Cement service.
  • 20, 2770-3400 Mill Gondolas needed off of any class 1 in South Texas. Cars are needed for use in scrap metal service.
  • 20, 2770 Mill Gondolas needed off of CSX in the northeast. Cars are needed for use in non-haz soil service. 52-60 ft
  • 100-150, 3400CF Covered Hoppers needed off of UP BN in Texas. Cars are needed for use in Sand service.
  • 8, 5200 Covered Hoppers needed off of various class 1s in various locations. Cars are needed for use in Plastic Pellet service.
  • 20-30, 3000 – 3300 PDs Hoppers needed off of BN or UP preferred in West. Cars are needed for use in Cement service. C612
  • 10, 4000 Open Hoppers needed off of CSX in the northeast. Cars are needed for use in scrap metal service. Open top hopper
  • 10, 6400 Open Hoppers needed off of CSX in the northeast. Cars are needed for use in wood chip service. Open top hopper, flat bottom
  • 45, 3000 cf PD Hoppers needed off of any class 1 in Texas. Negotiable
  • 200+, 5000cf Covered Hoppers needed off of any class 1 in various locations.
  • 5, 3400CF Closed Hoppers needed off of any class 1 in Ohio. Cars are needed for use in Sand service.
  • 20, 17K DOT 111 Tanks needed off of various class 1s in various locations. Cars are needed for use in corn syrup service.
  • 100, 15.7K DOT 111 Tanks needed off of CSX or NS in the east. Cars are needed for use in Molten Sulfur service.
  • 30, 17K-20K DOT 111 Tanks needed off of UP or BN in Texas. Cars are needed for use in UAN service.
  • 20-25, 25.5K 117, DOT-111, CPC 1232 Tanks needed off of UP or BN in Texas. Cars are needed for use in Veg Oil service. Coiled and insulated
  • 15, 30K 117, DOT-111, CPC 1232 Tanks needed off of UP or BN in Texas. Cars are needed for use in Veg Oil service.
  • 1-2, Any DOT 111, 117, CPC 1232 Tanks needed off of any class 1 in Texas. Coiled and Insulated
  • 2-4, 28K DOT 111 Tanks needed off of BNSF Preferred in Minnesota. Cars are needed for use in Biodiesel service. Coiled and insulated

Lease Offers

  • 15, Plate E and F Boxs located off of NS in New Orleans. Cars are clean Double Sliding Doors
  • 10, 28.3K, 117R Tanks located off of All Class Ones in St Louis. Cars are clean Call 239-390-2885 for more information
  • 10, 21.9K, Tanks located off of UP in Longview, TX. Cars are clean Brand New. 2-5 Year Lease
  • 38, 4750 plus, 3-4 Hatch Gravity Covered Hopperss located off of CSX/CN/CP in Florida. Sub-lease 12-18 months

Sales Offers

  • 20, Refer, Box Boxcars located off of UP in ID.
  • 100-200, 31.8K, CPC 1232 Tanks located off of BN in Chicago. Mix of dirty and clean cars
  • 100, 28.3K, 117J Tanks located off of various class 1s in multiple locations.
  • 100, 17K, DOT-111 Tanks located off of various class 1s in multiple locations.
  • 100, 19K, DOT-111 Tanks located off of various class 1s in multiple locations.
  • 120, 31.8K, CPC 1232 Tanks located off of various class 1s in multiple locations.
  • 300-500, 3250s, Covered Hoppers located off of various class 1s in multiple locations.
  • 140, 60ft, Boxcars located off of various class 1s in multiple locations.
  • 150, 29.2K, 117R Tanks located off of various class 1s in multiple locations.
  • 100-300, 3400, Covered Hoppers located off of various class 1s in multiple locations.

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

PFL offers turn-key solutions to maximize your profitability. Our goal is to provide a win/win scenario for all and we can handle virtually all of your railcar needs. Whether it’s loaded storage, empty storage, subleasing or leasing excess cars, filling orders for cars wanted, mobile railcar cleaning, blasting, mobile railcar repair, or scrapping at strategic partner sites, PFL will do its best to assist you. PFL also assists fleets and lessors with leases and sales and offers Total Fleet Evaluation Services. We will analyze your current leases, storage, and company objectives to draw up a plan of action. We will save Lessor and Lessee the headache and aggravation of navigating through this rapidly changing landscape.

PFL IS READY TO CLEAN CARS TODAY ON A MOBILE BASIS WE ARE CURRENTLY IN EAST TEXAS

Live Railcar Markets

Lease Offers
Lease Bids
Sales Offers
Sales Bids
CAT Type Capacity GRL QTY LOC Class Prev. Use Clean Offer Note