The number of cars in storage continued to decline and is getting closer to pre-pandemic levels as the economy begins to recovers and cars are retired. As of January 1, 2021 there were a total of 409,289 cars in storage, a decline of 19,255 cars (-4.49%) month over month. This was the largest decline since August. 24.7% of the total fleet is now in storage, compared to 25.79% last month. A majority of that decline came from tanks (down 7,711 cars) and covered hoppers (down 9,583 cars). The total number of stored cars is now only 15,045 cars, or 3.8%, higher than pre-pandemic levels last seen March 1st.
The number of cars in service continued to decline, at its fastest pace all year, down 4340 cars. Railcar manufacturers and leasing companies are setting their sights on the second half of this year for an expected demand recovery. “Greenbrier’s operating footprint is well suited for the market recovery, expected in the second half of calendar 2021” CEO Bill Furman said. He continued, “Overall we’re cautiously optimistic about the U.S. economy and the world during the next 12 months. The recently enacted federal stimulus package, mass vaccine distribution, steady consumer spending and the promise of a robust infrastructure package emerging from a new Congress and administration in Washington are all favorable developments,” Furman said. It will be interesting to see how long the above trends continue to decline if in fact we do have a big demand recovery in the second half 2021. Stay tuned to PFL for the latest and greatest.
The tax incentive to make infrastructure improvements to short-lines could become permanent as a 2021 appropriations bill, recently passed by congress, includes a provision to make to do just that. The credit, also known as the 45G tax credit, was established on a temporary basis despite broad industry support. This provides short lines with a tax credit of up to $3,500 per mile for infrastructure investments. There has already been more than $5 billion of investment since the credit was introduced in 2005.
“We applaud Congress for their bi-partisan bi-cameral action to make the effective and popular Short Line Tax Credit permanent,” said Chuck Baker, president of the American Short Line and Regional Railroads (ASLRRA), in a statement. “With the passage of this bill, our mission to connect rural and small town America to larger domestic and global markets in a safe, efficient, and environmentally friendly way is set to receive a significant boost. Creating long-term tax certainty will enable small business railroads to meet customer needs throughout the country, particularly in the energy, agriculture and manufacturing industries, immediately and far into the future.”
Call PFL For All Your Railcar Storage Needs Today – We have spaces to offer you North America Wide 239-390-2885
If you are need of or have storage available or if you need maintenance, the cleaning of cars or are looking to reposition cars in a cost effective manner, call PFL today! We can trouble shoot your situation and work diligently to find a solution for you!
If you are a short line operator and you have questions about the 45G tax credit please call PFL today 239-390-2885.
Live Railcar Storage Availability
As a storage operator or a user of storage, PFL can help maximize your profitability. PFL offers turn-key solutions to operators and users alike. PFL Field Services LLC is preforming work inside many storage operations and short lines. PFL Field Services will clean railcars, service railcars cars and scrap cars on a mobile basis with a PFL Guarantee and has crews available ready to serve you today no matter where you are at in the country. We have acquired top rated, brand new equipment to service you the customers. PFL Field Services also offers inspection services from top rated qualified inspectors now full time at PFL. Call us today to book a time! Our goal is to provide a win/win scenario for all and we can handle virtually all of your railcar needs onsite at a storage facility. Saving a user empty moves to a shop. Not only is it more efficient saving time and money for the car owner or lessee and lessor but retains the short lines storage customer at the facility over the long term. PFL handles loaded storage, empty storage mobile railcar cleaning, blasting, mobile railcar repair and scrapping of all railcars at storage facilities across the country. If you are an operator and have cars onsite that your customers need to have work done let them know you can do it via PFL Field Services. We can assist on return on lease scenarios saving Lessor and Lessee thousands of dollars. Call the desk today 239-390-2885.