Posted on by Curtis Chandler Posted in Railcar Report

“It’s better to walk alone than with a crowd going in the wrong direction.”
– Diane Grant

NO PODCAST TODAY DUE TO TECHNICAL DIFFICULTIES

Weekly Jobless Down Week over Week Unexpectedly

  • New weekly jobless claims fell back below the 400,000 level for the first time in three weeks, resuming improvements after a brief bump higher in initial filings.
  • The Department of Labor released its weekly report on new jobless claims Thursday of last week at 8:30 a.m. ET.  Initial jobless claims, week ended June 26 was  364,000 vs. 388,000 expected.
  • Continuing claims, week ended June 19 was 3.469 million vs. 3.340 million expected and an upwardly revised 3.413 million during prior week.
  • At 364,000, new filings reached the lowest level since March 2020 with new claims coming in at about half their total from the beginning of 2021. New claims were coming in at just over 200,000 per week on average throughout 2019.
  • Many economists are looking for further improvement in the coming months. This would coincide with school reopening’s to help alleviate the burden of finding childcare, an increase in consumer mobility and demand over the summer, and a phase-out of federal enhanced unemployment benefits.

Stocks up on Friday of last week and up week over week

The Dow closed higher on Friday of last week, up 152.82 (+0.44%) points closing out the week at 34,786.35 +352.51 points week over week.  The S&P 500 closed higher on Friday of last week, up 32.40 points (+.75%) and closing out the week at 4,352.34, up +71.64 points week over week.   The Nasdaq closed higher on Friday of last week, up +116.95 points (+0.81%) and closing out the week at 14,639.33, up +278.94 points week over week. 

In overnight trading, DOW futures traded lower and are expected to open down this morning 20 points

Oil Rises for the Sixth Straight Week, however OPEC+ seem to be in disagreement.   

Oil prices steadied on Friday of last week after OPEC+ ministers resumed talks on raising oil output the day after the United Arab Emirates blocked a deal, which could delay plans to pump more oil through the end of the year.  OPEC+ are meeting again after UAE opposed the proposals, saying it wanted its quota to be higher, sources said. The long rally in prices could be undermined if OPEC+ nations go their separate ways and add to supply as they see fit.

WTI crude oil closed lower on Friday of last week -$0.07 cents a barrel to settle at $75.16 a barrel, up $1.11 a barrel week over week.   Brent crude oil for August delivery closed higher on Friday of last week gaining +$0.33 a barrel, and closing at $76.17, down $0.01 a barrel week over week.

U.S. commercial crude oil inventories decreased by 6.7 million barrels week over week. At 452.3 million barrels, U.S. crude oil inventories are 6% below the five year average for this time of year.

Total motor gasoline inventories increased by 1.5 million barrels week over week and are at par with the five year average for this time of year. Finished gasoline and blending components inventories both increased last week.

Distillate fuel inventories decreased by 900,000 barrels week over week and are 5% below the five year average for this time of year.

Propane/propylene inventories increased by 1.2 million barrels week over week and are 17% below the five year average for this time of year.

Total commercial petroleum inventories decreased by 4.6 million barrels last week.

U.S. crude oil imports averaged 6.4 million barrels per day last week, a decrease by 500,000 barrels per day week over week. Over the past four weeks, crude oil imports averaged 6.7 million barrels per day, 2.8% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 790,000 barrels per day, and distillate fuel imports averaged 245,000 barrels per day

U.S. crude oil refinery inputs averaged 16.3 million barrels per day during the week ending June 25, 2021 which was 187,000 barrels per day more than the previous week’s average. Refineries operated at 92.9% of their operable capacity last week. Gasoline production decreased last week, averaging 9.6 million barrels per day. Distillate fuel production decreased last week, averaging 5.0 million barrels per day.

Oil is higher in overnight trading and, as of the writing of this report, WTI is poised to open at $76.07, up $.91 per barrel from Friday’s close.

North American Rail Traffic

Total North American rail volumes were up 11.4% year over year in week 25 (U.S. +12.4%, Canada +10.0%, Mexico +4.6%) resulting in quarter to date volumes that are up 20.6% year over year and year to date volumes that are up 12.1% year over year (U.S. +13.6%, Canada +9.0%, Mexico +4.3%). 9 of the AAR’s 11 major traffic categories posted year over year increases with the largest increases coming from intermodal (+8.8%), coal (+27.9%), metallic ores & metals (+36.9%) and nonmetallic minerals (+12.4%).

In the East, CSX’s total volumes were up 13.9%, with the largest increases coming from intermodal (+13.1%), coal (+52.0%) and metals & products (+94.0%). NS’s total volumes were up 7.9%, with the largest increases coming from intermodal (+3.6%), coal (+24.4%), metals & products (+52.0%) and petroleum (+71.8%).

In the West, BN’s total volumes were up 15.5%, with the largest increases coming from intermodal (+13.6%), coal (+21.5%) and metallic ores (+336.1%). UP’s total volumes were up 12.4%, with the largest increases coming from intermodal (+8.1%), coal (+24.1%), chemicals (+13.3%), grain (+38.7%), stone sand & gravel (+32.5%) and petroleum (+44.8%).

In Canada, CN’s total volumes were up 14.3%, with the largest increases coming from intermodal (+12.1%), coal (+71.0%) and metallic ores (+16.3%). RTMs were up 14.7%. CP’s total volumes were up 8.8%, with the largest increases coming from intermodal (+12.7%), petroleum (+68.1%) and coal (+29.5%). RTMs were up 0.5%.

KCS’s total volumes were up 12.9%, with the largest increases coming from coal (+66.4%), intermodal (+6.6%) and metals & products (+98.0%).

Source: Stephens

Rig Count

North American rig count is up by 15 rigs week over week.  The U.S. rig count was up 5 rigs week over week and up by 212 rigs year over year. The U.S. currently has 475 active rigs. Canada’s rig count was up by 10 rigs week over week, and up by 118 rigs year over year and Canada’s overall rig count is 136 active rigs.  Year over year we are up 330 rigs collectively.  International rig count that comes out at the beginning of each month was up by 8 rigs month over month but down 23 rigs you over year.  International rig count stands at 758 active rigs.

North American Rig Count Summary

Source : Baker Hughes

Things We are Keeping an Eye on

  1. Petroleum by Rail – The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 23,642, from 23,307 a gain of 335 rail cars week over week.  Canadian volumes were mixed – CN shipments declined by 1.8% while CP shipments were up by 0.8%.  U.S. were mostly higher.  The UP had the largest percentage increase, up by 14.3% and the NS had the largest percentage decrease down by 3.0%.

  2. Just when you thought we heard the last on the Keystone XL pipeline by TC Energy – Well it is far from over folks – TC Energy plans on filing a claim under the US- Mexico- Canada free trade agreement known as the USMCA agreement related to the cancelled Key Stone XL pipeline project.  The company filed a notice of intent to do so on Friday of last week.  A similar suit was filed under the Obama administration but was dropped when Trump signed the necessary Presidential permit as needed.  TC Energy is seeking $15.2 billion in damages against the U.S. government for its actions.

  3. Folks this weekend we have not been keeping an eye on too much else –  We tried to give everyone off as much time as possible this 4th of July weekend at PFL and celebrated this great country with our own PFL Fireworks show.  Hope you had a great one we sure did!

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!”

Railcar Markets

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:

  • 125 non coiled Rs or Js clean or last in Jet Fuel needed in Houston
  • 100 31.8k CPC 1232’s for the Use in Gas or Diesel service in Texas for 1 Year.
  • 100 30K 117R or J’s for the Use in Gas or Diesel service in Texas for 1 Year.
  • 110 117 J’s 28.3 for dirty to dirty service in Alberta for crude.
  • 20 19,000 Gal Stainless cars in Louisiana UP for nitric acid 1-3 years negotiable
  • 90-110 Pressure Cars 340s in Alberta on the CN 2-4 years Butane/Propane
  • 10-15 Stainless 23.5 cars coiled and insulated in the East 1-2 years
  • 5 Gondolas for Sale for aggregate in Texas any line
  • 8 Hoppers for plastic pellets wanted to purchase
  • 15-25 3915 CF PD Hoppers in Chicago any class one 3 year lease – negotiable
  • 50-100 117Rs 30.3 gallon for refined products UP and BN Texas negotiable
  • 18-25 5,200CF or greater covered hoppers needed in Illinois off the CN or NS.
  • 20-25 30K 117Rs for the use in ethanol in the Midwest. Dirty to dirty service/
  • 10 6,300CF or greater covered hoppers needed in the Midwest.
  • 8 plastic pellet hoppers for purchase.
  • 10 PD cars for cement service for purchase.
  • 20 17K tank cars for purchase. Must be food grade.
  • 50-100 C/I food grade tank cars needed for veg oil in the Midwest for 1 year

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!
  • 50 29,188 US GAL EC&I CPC 1232s with Magnetic gage rods for up to 1 year starting ASAP
  • 200 4300 Hoppers in Canada – Lined and dirty Negotiable
  • 20 117R 30K plus tanks for ethanol in Wisconsin off the CN Negotiable
  • 80 6350 Grain Hoppers in Nebraska on the BN Clean Negotiable
  • 90 117Rs 30K located in Alberta CN or CP Refined Products Dirty – negotiable
  • 37 BRAND NEW 5161 Sugar Hoppers in Arkansas UP – negotiable
  • 205 117Js 29K BRAND NEW in Colo and Iowa off the UP, BNSF – price negotiable
  • 99 340W Pressure Cars various locations Butane and Propane dirty negotiable
  • 100 340W Pressure Cars Montana or Kansas LPG last in – negotiable
  • 218 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
  • 30 CPC 1232 25.5K Pennsylvania NS clean negotiable
  • 20-30 29K C/I 117J cars for lease up to 1 year. Dirty in Biodiesel and can be returned dirty.
  • 100-150 29K C/I 117J cars for lease. Dirty in Bakken crude and can be returned dirty.
  • 100 29K C/I 117J cars for lease. Dirty in Heavy Crude and can be returned dirty.
  • 100-200 LPG Tanks dirty to dirty up to 5 years – various locations – negotiable
  • 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

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 scraping 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

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