Posted on by Curtis Chandler Posted in Railcar Report

“To improve is to change; to be perfect is to change often.”-Winston Churchill

Jobs Update

  • Initial jobless claims for the week ending April 15th, 2023 came in at 245,000, up 5,000 people week-over-week.
  • Continuing jobless claims came in at 1.865 million people, versus the adjusted number of 1.804 million people from the week prior, up +61,000 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 22.34 points (+0.07%), closing out the week at 33,808.96, down -220.73 points week over week. The S&P 500 closed higher on Friday of last week, up 3.73 points (+0.09%), and closed out the week at 4,133.52, down -4.12 points week over week. The NASDAQ closed higher on Friday of last week, up +12.90 points (+0.11%), and closed the week at 12,072.46, down -51.01 points week over week.

In overnight trading, DOW futures traded lower and are expected to open at 33,865 this morning down -85 points.

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

WTI traded up $0.50 per barrel (0.65%) to close at $77.87 per barrel on Friday of last week, and down -$4.65 per barrel week over week. Brent traded up $0.56 per barrel (0.69%) on Friday of last week, to close at US$81.66 per barrel, down -US$4.65 per barrel week over week.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.6 million barrels week over week. At 466.0 million barrels, U.S. crude oil inventories are 2% above the five-year average for this time of year.

Total motor gasoline inventories increased by 1.3 million barrels week over week and are 6% below the five-year average for this time of year.

Distillate fuel inventories decreased by 400,000 barrels week over week and are 11% below the five-year average for this time of year. 

Propane/propylene inventories decreased by 700,000 barrels week over week and are 27% above the five-year average for this time of year.

Propane is an interesting one, folks.  While we are well above the five-year average for this time of year, the level of inventory that we are above the five-year average keeps falling (on 3/20/2023 we were 42% above the five-year average).  There are new plastic facilities coming online that may suck up any projected supply surplus that comes online.  In Canada, we are seeing that happen now.  According to the energy regulator in Canada, propane stocks fell to 1.7 million barrels at the end of March, a 500,000 barrel month-over-month decrease.  This drop is from regional demand increases namely IPL commissioned its 525,000 t/year propane dehydrogenation and polypropylene Heartland Complex in Alberta.   The industry expects propane prices to fall as they have been but time will tell, stay tuned to PFL we are watching this one.

Propane prices were flat week over week closing at 83 cents per gallon, but down 48 cents per gallon year over year.

Overall, total commercial petroleum inventories decreased by 400,000 barrels during the week ending April 14th, 2023.

U.S. crude oil imports averaged 6.3 million barrels per day during the week ending April 14th, 2023, an increase of 101,000 barrels per day week over week. Over the past four weeks, crude oil imports averaged 6.2 million barrels per day, 2.3% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) averaged 700,000 barrels per day, and distillate fuel imports averaged 113,000 barrels per day during the week ending April 14th, 2023.

U.S. crude oil exports averaged 4.571 million barrels per day for the week ending April 15th, 2023, an increase of 1.844 million barrels per day week over week. Over the past four weeks, crude oil exports averaged 4.280 million barrels per day.

U.S. crude oil refinery inputs averaged 15.8 million barrels per day during the week ending April 14, 2023 which was 260,000 barrels per day more week over week.

As of the writing of this report, WTI is poised to open at $77.74 down -$0.13 per barrel from Monday’s close.

North American Rail Traffic

Week Ending April 19th, 2023.

Total North American weekly rail volumes were down (-5.9%) in week 15 compared with the same week last year. Total carloads for the week ending on April 19th were 350,674, up (2.79%) compared with the same week in 2022, while weekly intermodal volume was 291,666, down (-14.57%) compared to the same week  in 2022. 7 of the AAR’s 11 major traffic categories posted year-over-year increases with the most significant decrease coming from Intermodal (-14.57%). The largest increase came from Motor Vehicles and parts (+11.75%).

In the east, CSX’s total volumes were down (-3.97%), with the largest decrease coming from Intermodal (-12.7%) and the largest increase from Grain(+17.79%).  NS’s volumes were down (-7.92%), with the largest decrease coming from Coal (-16.06%) and the largest increase from Motor Vehicles and Parts (+11.03%).

In the West, BN’s total volumes were down (-8.49%), with the largest decrease coming from Intermodal (-18.86%), and the largest increase coming from Motor Vehicles and Parts (+21.55%). UP’s total rail volumes were down (-1.14%) with the largest decrease coming from Other (-24.54%) and the largest increase coming from Nonmetallic Minerals (+25.34%).

In Canada, CN’s total rail volumes were down (-8.88%) with the largest increase coming from Farm Products (+19.07%) and the largest decreases coming from Grain (-30.69%) and Intermodal which was a close second, down (-29.19%). CP’s total rail volumes were down (-1.53%) with the largest decrease coming from Intermodal (-35.78%) and the largest increase coming from Other (+137.50%).

KCS’s total rail volumes were down (-8.78%) with the largest decrease coming from Metallic Ores and Metals (-25.93%) and the largest increase coming from Nonmetallic Minerals (+72.91%).

Source Data: AAR – PFL Analytics

Rig Count

North American rig count was down by -1 rig week over week. U.S. rig count was up by 5 rigs week over week and up by +58 rigs year over year. The U.S. currently has 793 active rigs. Canada’s rig count was down by -6 rigs week-over-week and up by +4 rigs year over year. Canada’s overall rig count is 105 active rigs.  Overall, year over year, we are up +62 rigs collectively.

North American Rig Count Summary

A few things we are keeping an eye on

We are watching Petroleum Carloads

The four-week rolling average of petroleum carloads carried on the six largest North American railroads fell to 23,460 from 23,489, which was a loss of -29 rail cars fell week-over-week. Canadian volumes fell week over week; CP’s shipments decreased by -16.8% week over week, and CN’s volumes were lower by -0.3% week-over-week. U.S. shipments were mixed. The NS had the largest percentage increase and was up by +21.0% week-over-week.  The BN had the largest percentage decrease and was down by 4.9%.

 

We were at the Tank Car Committee Meeting in Denver

The tank car committee meeting is hosted by the Association of American Railroads which supports Agriculture Automotive and Energy, amongst other industries.  The meeting is free to attend and lasts a couple of days, PFL was there in full force:

 The tank car committee meeting this go around was a very well-attended function.  It is an industry gathering at a different level.  It is where you really dig in and try to get an edge on what is going to happen with the various tank cars in the American fleet.  It is a great meeting for engineers, part manufacturers, and service companies in the rail industry.  As usual in the rail industry, there were quite a few functions to meet new people or catch up with old friends.  In last week’s meeting, we went over a number of dockets.  New regulations are on the way: no one really knows the final outcome, but change is on the way.  For more information on last week’s tank car committee meeting please contact PFL today.

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 239-390-2885

Lease Bids

  • 25, 30K 117 Tanks needed off of CN in Canada for 1 year. Cars are needed for use in Refined Products service.
  • 30, 17K-20K 117J Tanks needed off of UP or BN in Midwest/West Coast for 3-5 Years. Cars are needed for use in Cuastic service.
  • 13-15, Any Flat Botttom Gondolas needed off of any class 1 in Texas for 1-3 Years. For lease or purchase
  • 20, 28.3K DOT 111, 117, CPC 1232 Tanks needed off of any class 1 in Bakersfield, CA for Month to Month. Cars are needed for use in Biodiesel service.
  • 10, 286K 15.7K Tanks needed off of KCS in Texas for 1 Year. Cars are needed for use in Sulfuric Acid service. Needed Next few months
  • 150, 23.5K DOT 111 Tanks needed off of any class 1 in LA for 2-3 Year. 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.
  • 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.
  • 25-50, 30K DOT 111, 117, CPC 1232 Tanks needed off of any class 1 in Chicago for 1-2 Months. Cars are needed for use in Diesel service.
  • 100, 30K DOT 111, 117, CPC 1232 Tanks needed off of any class 1 in Texas for 1 Year. Cars are needed for use in West Texas Sour service.
  • 25-50, 25.5K CPC1232 or 117J Tanks needed off of UP or BN in any location for 3-5 Years. Cars are needed for use in Heavy Fuel Oil service.
  • 40, 30K 117R or 117J Tanks needed off of CP in MN for 2 Years. Cars are needed for use in Ethanol 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
  • 30-40, 286K DOT 113 Tanks needed off of CN or CP/ UP in Canada/MM for 5 Years. Cars are needed for use in CO2 service.
  • 70, 32K 340W Pressure Tanks needed off of CP or CN in Edmonton for 3 Years. Cars are needed for use in Propane service.
  • 200-300, 28.3K 117R or 117J Tanks needed off of CP or CN in Sarnia for 3 Years. Cars are needed for use in Fuel Oil service.
  • 30, 30K DOT 111 Tanks needed off of UP in Texas for 1-3 Years. Cars are needed for use in Diesel service.
  • 5-7, 28.3K 117R Tanks needed off of NS or CSX in NC for 1 Year. Cars are needed for use in UCO service.
  • 25-50, 5000CF-5100CF Lined 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
  • 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.
  • 10-20, 20K-25K CPC 1232 or 117J Tanks needed off of UP CN in Illinois for 3-5 years. Cars are needed for use in Liquid feed service.
  • 100-150, 4000CF Covered Hoppers needed off of UP BN in Texas for Purchase or 5 years. Cars are needed for use in Aggregate service.
  • 10, any capacity Stainless Steel Tanks needed off of any class 1 in Canada for 5-10 years. Cars are needed for use in Alcohol service.
  • 50-100, 25.5K CPC1232 or 117J Tanks needed off of any class 1 in any location for 5 Years. Cars are needed for use in Veg Oil service. Unlined
  • 30-50, 30K 117 Tanks needed off of any class 1 in Northeast or Midwest for 1 Year. Cars are needed for use in C5 service. Must have Magrods
  • 10-12, 340W Pressure Tanks needed off of UP in Utah to Cali for 1 year. Cars are needed for use in propane service. Needs them in April 2023
  • 10-20, 340W Pressure Tanks needed off of CN or CP in Canada for 6 months to 1 year. Cars are needed for use in Propylene service. Immediate
  • 100, 33K 340W Pressure Tanks needed off of CN in Canada for 3-5 Years. Cars are needed for use in Propane service.
  • 25, 20.5K CPC1232 or 117J Tanks needed off of BNSF or UP in the west for 1-3 years. Cars are needed for use in magnesium chloride service. SDS onhand
  • 10-100, 20K CPC1232 or 117J Tanks needed off of BNSF, CN or UP in the south or midwest for 5 years. Cars are needed for use in Urea Ammonium Nitrate service. CN Miss, BN Oklahoma, UP LA and Iowa- Must be lined
  • 10, 50-60 footers Plate F Boxcars needed off of CN and UP or BNSF in Texas in Tennessee & Houston for 1 year. Cars are needed for use in Barium Sulfate service. Requires double door boxcars.
  • Up to 60, 5150cf Covered Hoppers needed off of CN, CSX, NS in the east or midwest for 3 years. Cars are needed for use in Fertilizer service. 3-4 hatch gravity dumps
  • 40, 2400cf Gondolas needed off of various class 1s in Indiana for 6 Months. Cars are needed for use in Rock service. Call for details
  • 20-30, 14k Any Tanks needed off of BNSF, UP in Texas for 1-3 Years. Cars are needed for use in HCl service. Call for details

Sales Bids

  • 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.
  • 2-4, 28K DOT 111 Tanks needed off of BNSF Preferred in Minnesota. Cars are needed for use in Biodiesel service. Coiled and insulated
  • 100, Plate F Boxcars needed off of BN or UP in Texas.
  • 20, 2770 Mill Gondolas needed off of CSX in the northeast. Cars are needed for use in non-haz soil service. 52-60 ft
  • 8, 5200 Covered Hoppers needed off of various class 1s in various locations. Cars are needed for use in Plastic Pellet service.
  • 10, 4000 Open Hoppers are needed off of CSX in the northeast. Cars are needed for use in scrap metal service. Open top hopper
  • 20-30, 3000 – 3300 PDs Hoppers needed off of BN or UP preferred in any location, but prefers the west. Cars are needed for use in Cement service. C612
  • 20, 17K DOT 111 Tanks are 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.
  • 30-40, 30K 117, DOT-111, CPC 1232 Tanks needed off of UP or BN in Iowa. Cars are needed for use in CO2 & Ethanol service.

Lease Offers

  • 100-200, 31.8, 1232 Tanks located off of BN in Chicago. Cars are clean Sale or Lease
  • 70, 25.5K, 117J Tanks located off of UP in Texas. Cars are clean Call for information
  • 150, 30K, DOT111 Tanks located off of various class 1s in various locations. Cars were last used in Ethanol. Call for information
  • 30, 23.5K, DOT 111 Tanks located off of UP or BN in Texas. Cars were last used in Clean / UAN.
  • 25-100, 17.6K, Dot 111 Tanks located off of UP or BN in Midwest. Cars were last used in Fertilizer / Corn syrup. Free Move
  • 20, 20k, Dot 111 Tanks located off of CSX in GA. Cars are clean
  • 2, 20K, Dot 111 Tanks located off of UP in TX. Cars are clean
  • 5, 20K, Dot 111 Tanks located off of UP in TX. Cars were last used in Sulfuirc Acid. Free Move
  • 108, 28.3K, 117R Tanks located off of CN in Canada. Cars were last used in Crude. Free Move, Dirty to Dirty

Sales Offers

  • 100, 28.3K, 117J Tanks located off of various class 1s in multiple locations. Clean
  • 100, 30K, DOT 111 Tanks located off of various class 1s in multiple locations. Clean
  • 100-200, 31.8K, CPC 1232` Tanks located off of BN in Chicago. Sale or Lease

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