Posted on by Curtis Chandler Posted in Railcar Report

“Packaged inside of every mistake there lays a great lesson. And while I don’t want to take the mistake into the New Year, I most certainly want to take the lesson that’s packaged inside of it”.

Craig D. Lounsbrough

Jobs Update

Initial and Continuing Jobless Claims

  • Initial jobless claims for the week ending December 25th came in at 198,000, down 8,000 people week over week.
  • Continuing claims came in at 1.716 million people versus the adjusted number of 1.856 million people from the week prior, down -140,000 people week over week.

Stocks closed lower on Thursday of last week mostly higher week over week

The DOW closed lower on Thursday of last week, down -59.78 points (-.16%), closing out the week at 36,338.30 points, up +387.70  points week over week. The S&P 500 closed lower on Thursday of last week, down -12.6  points  (-.26 %) and closed out the week at 4,766.18, up +40.39 points week over week. The Nasdaq closed lower on Thursday of last week, down -96.59 points (-.61%) and closed out the week at 15,653.40, down -8.43 points week over week.

In overnight trading, DOW futures traded higher and are expected to open at 36,410 this morning up 184 points.

Oil closed up on Thursday of last week and up week over week

West Texas Intermediate (WTI) crude closed up +43 cents a barrel on Thursday of last week to settle at  $76.99 per barrel up +$3.20 a barrel week over week, while Brent futures closed up +9 cents  per barrel to settle at $79.32  per barrel, up $2.47 per barrel week over week.U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.6 million barrels from the previous week. At 420.0 million barrels, U.S. crude oil inventories are 7% 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 6% below the five year average for this time of year.

Distillate fuel inventories decreased by 1.7 million barrels week over week and are 14% below the five year average for this time of year.

Propane/propylene inventories decreased by 3.6 million barrels week over week and are 10% below the five year average for this time of year.

Propane Prices – fell marginally week over week closing at $1.01 per gallon hitting the top end of the 5 year high for this time of year.

Overall, total commercial petroleum inventories decreased by 18.9 million barrels week over week.

U.S. crude oil imports averaged 6.8 million barrels per day for the week ending December 24, 2021 an increase of 600,000 barrels per day week over week. Over the past four weeks, crude oil imports averaged 6.5 million barrels per day, 13.7% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 432,000 barrels per day, and distillate fuel imports averaged 162,000 barrels per day for the week ending December 24th.

U.S. crude oil refinery inputs averaged 15.7 million barrels per day during the week ending December 24, 2021 which was 115,000 barrels per day less than the previous week’s average. Refineries operated at 89.7% of their operable capacity.

As of the writing of this report, WTI is poised to open at $76.15 , up 94 cents per barrel from Thursday’s contract close.

North American Rail Traffic

Total North American rail volumes were up 3.2% year over year in week 51 (U.S. +3.7%, Canada +0.4%, Mexico +8.7%) resulting in quarter to date volumes that are down 4.8% and year to date volumes that are up 4.7% year over year (U.S. +5.9%, Canada +1.0%, Mexico +4.4%). 6 of the AAR’s 11 major traffic categories posted year over year increases with the largest increases coming from coal (+15.2%) and nonmetallic minerals (+21.9%). The largest decrease came from grain (-8.2%).

In the East, CSX’s total volumes were up 5.4%, with the largest increases coming from intermodal (+6.9%) and coal (+15.7%). NS’s total volumes were up 4.0%, with the largest increases coming from coal (+19.3%) and chemicals (+16.4%). The largest decrease came from intermodal (-2.4%).

In the West, BN’s total volumes were up 2.3%, with the largest increase coming from coal (+12.7%). The largest decrease came from grain (-11.1%). UP’s total volumes were up 5.5%, with the largest increases coming from coal (+21.1%), stone sand & gravel (+62.2%) and chemicals (+11.3%). The largest decrease came from grain (-26.1%).

In Canada, CN’s total volumes were up 2.7%, with the largest increases coming from coal (+70.6%) and metallic ores (+23.3%). The largest decrease came from intermodal (-4.5%). RTMs were down 0.2%. CP’s total volumes were up 2.0%, with the largest increase coming from intermodal (+14.4%). RTMs were down 6.9%.

KCS’s total volumes were up 3.7%, with the largest increase coming from intermodal (+6.0%). The largest decrease came from petroleum (-30.8%).

Source Data: Stephens

Rig Count

North American rig count is down by 43 rigs week over week.  The U.S. rig count was flat week over week and up by 235 rigs year over year. The U.S. currently has 586  active rigs. Canada’s rig count was down by 43 rigs week over week but up by 31 rigs year over year and Canada’s overall rig count is 90 active rigs.  Overall, year over year, we are up 266 rigs collectively.

North American Rig Count Summary

A few things we are keeping an eye on:

Happy New Year Fireworks that was it for This Weekend

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 trouble shoot 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 239-390-2885

PFL is seeking:

  • 50 25.5 Tanks C&I for heavy fuel oil in Texas dirty to dirty 1-2 years negotiable
  • 50 29K C&I Tanks for veg oil to purchase – Immediate need
  • 20 pressure cars 340’s in SE clean or last in butane or propane 1-2 years Immediate Need
  • 20 5200-6200 PD hoppers in the south for 1-2 years lined non-food grade negotiable
  • 30 5800 and 6250 covered gons for sale
  • 100 117Js  Coiled and Insulated dirty to dirty service BNSF CN or CP
  • 50, 5800cuft or larger Covered Hopper for the use in DDG needed in the Midwest for 3-4 years. Immediate need.
  • 10 25-28K C&I tanks for veg oil needed in the south for 2 years negotiable
  • 10-20 Covered hopper grain cars in the midwest 5200-5500 2-3 years
  • 20-30, 19K Tank Cars for Caustic Soda needed in Texas off the UP or BN.
  • Unit Train of 28.3K 117Js for use in Crude service off the CN or BN in MT, ND, or Alberta.
  • 100-150 340 pressure cars for LPG service in Texas
  • 70-90 Biodiesel cars C&I any type car in the midwest or TX 1-2 years
  • 15-25, 23.5K cars for chem needed in the South for 1 Year.
  • 50 117R 30K+ for gasoline in the midwest CSX or NS for 6 months negotiable
  • 100 Moulton Sulfur cars for purchase – any location – negotiable
  • 10 DOT111 or 1232 25.5K 286 GRL for Crude Glycerin anywhere in US 1 year lease
  • 12 Plate F 286 GRL Boxcars 12’ plug doors midwest preferred for 1 year lease
  • 30-50 Log Flats with stanchions 286K GRL in the midwest/east CSX NS 1-3 years negotiable
  • 50 Ag Gons 2500-2800cuft 286k GRL in the east CSX for 5 years negotiable
  • 25 Covered wood chip Gons 6000CF 286 GRL any location for 1-3 years negotiable
  • 25 Boxcars for paper 6000CF 286 GRL 1-3 years anywhere
  • 10-20 propane cars needed for a short term lease in ND off the CP.
  • 100 15K Tanks 286 for Molten Sulfur in the Northeast CSX/NS for 6 months negotiable
  • 200 117Js 28.3 C&I 286 in the North on the CN for 1 year Crude dirty to dirty Negotiable
  • 20 5650 PD Hoppers 286s needed in Montana for talc BNSF for 3-5 years
  • 100 Open Top Hoppers needed in the Midwest for coal BNSF 1 year
  • 100, 5800 Covered Hoppers 286 can be West or East for Plastic 3-5 years
  • 50-100, 4750 Covered Hoppers needed for Pet-coke. Can take in the South.
  • 70, 117R or J needed for Ethanol for 3 years.  Can take in the South.
  • 30, 25.5’s or greater food grade Kosher veg oil cars for 6-12 months
  • 50, 6500+ cu-ft Mill Gon or Open Top Hopper for wood chips in the Southeast for 5 Years.
  • 25 bulkhead flats 286 any class one for up to 5 years Negotiable
  • 10 open top hoppers 2400 C FT in Texas needed for stone on the UP 3-5 years
  • 20, 19,000 Gal Stainless cars in Louisiana UP for nitric acid 1-3 years – Oct negotiable
  • 10, 6,300CF or greater covered hoppers are needed in the Midwest.
  • 2, 89’ Flat cars for purchase or lease – needed in TX off the BNSF

PFL is offering:

  • Various tank cars for lease with dirty to dirty service including, nitric acid, gasoline, diesel, crude oil, Lease terms negotiable, clean service also available in various tanks and locations including Rs 111s, and Js – Selection is Dwindling. Call Today!
  • 200 Clean C/I 25.5K 117J in Texas. Brand New Cars!
  • 150 117R’s 31.8 clean for lease in Texas – negotiable
  • 31.8K Tank Cars last in Diesel. Dirty to dirty in Texas
  • 34 Clean C/I 25.5K CPC 1232’s located in PA.
  • 200 117Js 29K OK and TX Clean and brand new – Lined- lease negotiable
  • 142 111’s Clean last in gasoline in Texas for lease off the UP – negotiable
  • 100 117Rs dirty last in Gasoline in Texas for lease Negotiable
  • 90 117Rs 30K located in Alberta CN or CP Refined Products Dirty – negotiable
  • 25 BRAND NEW 5161 Sugar Hoppers in Arkansas UP – negotiable
  • 99 340W Pressure Cars various locations Butane and Propane dirty negotiable
  • 100 73 ft 286 GRL riser less deck, center part for sale,
  • 19 auto-max II automobile carrier racks – tri-49 for sale – negotiable
  • 10 food grade stainless steel cars
  • 20 20K Stainless cars in 3 locations in the south – negotiable
  • 30 CPC 1232 25.5K C/I Pennsylvania NS clean negotiable
  • 100-150 29K C/I 117J cars for lease. Dirty in Bakken crude and can be returned dirty.
  • 100 29K C/I 1232 cars for lease. Dirty in Heavy Crude and can be returned dirty.
  • 100 117Rs 29K clean last used in crude Washington State – price negotiable sale or lease
  • 21 111s 29K tanks last in alcohol dirty on the CN in Wisconsin for lease price negotiable
  • 100 111s of various volumes and locations last in fuel oil dirty price negotiable
  • Various Hoppers for sale and lease 3000-5800 CF 263 and 286 multiple locations negotiable
  •  45 Boxcars 60ft Plate F’s Located in Tenn CSX – Lease Negotiable
  •  28 20K Veg oil cars for lease in Arkansas – Negotiable
  • 100 3200 Covered Hoppers for sale price negotiable
  • 100 Center beam Flats with risers 73ft in SD and Iowa for sale negotiable

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