“Yesterday, December 7, 1941 — a date which will live in infamy”
– Franklin D Roosevelt Dec 8, 1941
As of December 1st, the total number of cars in storage continued to decline for the fifth consecutive month to 428,544 cars, granted at a slower pace as car storage numbers begin to normalize. This represented a month over month decline of 11,013 stored cars or -2.51% month over month. The number of cars in storage is 32,316 cars higher (8.2%) than this time last year, but almost back to where we were in May. Despite total cars in service declining at an increased pace, the percentage of the total fleet in storage declined to 25.79% from 26.42% month over month; we still have a ways to go as this time last year 23.63% of the total fleet was in storage. Finally, looking at pre-pandemic levels, we are 34,694 cars (8.81%) higher than where we were on March 1st 2020.
There has been a 15,000 car reduction in the total North American rail fleet since the high in December of last year. Many think we have further to go as many cars are being scrapped and taken out of service. On a percentage basis this accounts for less than a 1% reduction of the total fleet. Even prior to the pandemic we had nearly 25% of the total fleet in storage; much more than what is needed to cover steady growth and reasonable surge capacity. A lot of these cars may never be used again, either due to regulation or lack of alternative uses for specialty-built car types that serve declining markets. One thing for certain, a bigger reduction in the fleet size is needed help right size the storage numbers.
Most of the categories we track saw a 4th consecutive month over month declines. The two categories that had increased storage numbers this month were Open Top Hoppers and Flats. The number of Vehicle cars declined again this month to a pandemic era low after reversing the downtrend and increasing last month. The number of intermodal cars in storage is also continuing to decline steadily as retail demand strengthens. The number of tank cars in storage is still the hardest hit in the pandemic era by far, still up by nearly 30% since March. It is also important to note that while the number of cars in service has been declining in every other category of cars we track, the number of tank cars in service is actually still increasing. We talked last month about following the trends of petroleum supplied as a good indication for tank cars in storage and if crude prices continue to be become more favorable for producers these numbers should decline accordingly.
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!
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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.