Call PFL For All Your Railcar Storage Needs Today – We have spaces to offer you North America Wide 239-390-2885
The number of cars in storage declined further last month, marking the 10th consecutive month of declining total storage numbers. As of May 1, 2021, there was a total of 365,379 cars in storage, a decline of 12,862 cars (-3.4%) month over month. The last time storage numbers were this low was October of 2019. There are now 52,740 (-12.6%) fewer cars in storage then this time last year, and the numbers are now well below pre-pandemic levels. At these levels this represents 22.17% of the total North American rail fleet in storage, down from 22.92% last month. The number of cars in service also continues to decline, falling by 2,336 cars to 1,648,237.
Every category of cars we track saw MoM declines as far as the number of cars in storage. The largest declines came from Hoppers, down 5,038 cars or -12.79%. The smallest decline was Tanks, down 160 cars or .13%. The number of tanks in storage still remains well above pre-pandemic levels and is the only category where this is still the case.
New Railcar orders are beginning to pick up, rising 80% in the 1Q to 6,227 from 3,397 in the fourth quarter of last year. These numbers still remain below pre-pandemic levels and the backlog has been mostly declining.
One challenge manufacturers will have to contend with is the rising costs of inputs, namely Steel, which Cowen and Company estimates have put a 15%-25% premium on newly built equipment. Cowen predicts that these inflationary costs will hurt manufacturing in the short term to the benefit of lease prices. Longer term they expect orders will pick up as the inventory in storage continues to dwindle. Rising Steel prices are a double-edged sword, however, because this also encourages increased scrapping, which will dwindle down the storage inventory that much quicker.
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 troubleshoot your situation and work diligently to find a solution for you!
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.