The number of cars in storage declined again for the 8th consecutive month. As of March 1, 2021, there was a total of 392,511 cars in storage, a decline of 4,336 cars (-1.11%) month over month. The number of cars in storage is now pretty much in line with where we were this time last year. At these levels this represents 23.73% of the total North American rail fleet in storage, down from 23.97% last month. The number of cars in service declined 2,191cars or .13%. A majority of that decline came from Tanks (down 2,509 cars) and Gondolas (down 2,215 cars), while hoppers, intermodal, flats, and vehicle cars increased.
Extreme weather slowed traffic across the US especially in the states that aren’t accustomed to it. Traffic rates for the third week of February were the lowest on AAR record dating back to 1988. Traffic bounced back quickly in the following week and we are not expecting any long term storage implications as a result. Grain shipments continue to be strong, and the Canadian railroads continue to post record grain traffic.
Class one headcount is nearing a decade low. Railroads are trying to do more with less as they put locomotives in storage and implement PSR. Now that they have taken their first steps towards PSR, NS is looking to put in place in longer/heavier train to help optimize the network. “Now that these measures have largely been completed, the company has started to increase train lengths and train weights, which resulted in record fuel efficiency in the fourth quarter, Cindy Sanborn said. These measures were taken while deploying a trimmed workforce, she said. NS train lengths and weights increased by 10% over the fourth quarter of 2019, while fuel efficiency rose 3%. “PSR is really about simplifying things and having very good asset turns” and absorbing volume growth into existing trains, Sanborn said.
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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.