“…a professional is someone who can do his best work when he doesn’t feel like it.” – Alistair Cooke
Railcars in Storage
As of September 1st, the total number of railcars in storage was 476,572, accelerating the downtrend for a month over month decline of 27,451 (-5.45%); still 128,972 (37.1%) higher than this time last year. At these levels this currently represents 28.57% of the total North American fleet in storage. This would be below the July high of 31.55%, but still well above historical averages. Looking at pre-pandemic levels, we are still 82,722 cars above (21%) where we were March 1,2020.
Things May be Starting to Normalize.
Every category we track saw month over month decreases of cars in storage. This is a good indication that things may be starting to normalize. The number of tanks and covered hoppers in storage still remains the most elevated from pre-pandemic levels, with most other categories back around normal levels. As we highlighted in our previous storage report, intermodal traffic continues to be strong and the number of intermodal cars in storage is at levels not seen since this time last year.
August was the fifth-best month for intermodal loadings ever
August’s intermodal loadings were the best since late 2018. It was also the fifth-best month for intermodal loadings ever in the U.S., according to AAR Senior Vice President John T. Gray.
“Despite the pandemic and the associated economic dislocations, an enormous amount of freight continues to move on railroads and other transportation modes. …Much of what’s inside the trailers and containers on an intermodal train ends up on the shelves of stores, or finds its way to consumers’ doors via e-commerce merchants. Railroads help ensure that consumers get what they want, when they want it…”
– John T Gray
Looking at the charts below storage it is clear that storage is on a downtrend.
Now May Be the Best Time to Scrap
PFL is seeing more and more inquires for scrapping every single day as the number of cars in storage remains high. PFL is capable of scrapping on a mobile basis. Last month’s storage report we mentioned the potential for a credit being discussed. There is a new bipartisan act that was introduced that would enable a tax credit for car owners looking to purchase or refurbish existing equipment that “will incentive safer, greener freight railcar manufacturing in the United States.”
If the new or refurbished equipment will improve capacity or reduce fuel consumption by at least 8%, the bill would give car owners a time limited 50% tax credit. This credit, in tandem with an incentive to scrap cars as mentioned last month, could lead towards big changes in modernizing the existing rail fleet. Stay tuned to PFL for more details.
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 leasing company and having cars being returned on lease call PFL today to secure a return on lease location.
Live Railcar Storage Availability
As a storage operator or a user of storage, PFL can help maximize you 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.