Tallies, totals and other trend data in the freight transportation realm
4/18/2023
-5.17
In February, FTR’s Trucking Conditions Index declined to -5.17 from January’s -1.71 reading, reflecting weaker freight rates and volume, FTR officials said on April 17. The headwinds for trucking companies “more than offset slight improvements in utilization and fuel costs,” they said, adding that they forecast the index to “remain in negative territory until well into 2024.”
1.0
In March, the shipments component of the Cass Freight Index fell 1.0% month over month as freight markets “continue to work through an extended soft patch,” Cass Information Systems Inc. officials said on April 14. In seasonally adjusted terms, the index was 3.8% lower in March, after dropping lower by 0.3% in February. “Mild weather this winter and Omicron a year ago both supported volume comparisons in January and February, so the lower result in March was not a surprise,” Cass officials said. Year over year, the March index declined 4.0% after declining 0.3% year over year in February.
0.3
“Total U.S. freight carloads were down 1.2% in March 2023 from March 2022, their fourth year-over-year decline in the past five months. In 2023’s first quarter, total carloads were down 0.3% from last year. Excluding coal, carloads were down 2.1% in March and down 0.4% in the first quarter. In March, 10 of the 20 carload categories we track had carload gains, led by motor vehicles, petroleum products, and coal. In the first quarter, nine of the 20 categories had gains, led by crushed stone and sand and motor vehicles. Chemicals and grain had the biggest carload declines.” — the April 7 edition of AAR Rail Time Indicators, issued by Association American Railroads
7
On a consolidated GAAP basis, J.B. Hunt Transport Services Inc.’s first-quarter revenue declined 7% year over year, operating income declined 17% and diluted earnings per share decreased 18%, J.B. Hunt CFO John Kuhlow said April 17 during the company’s Q1 earnings call. “These declines were primarily driven by lower freight volumes moderating pricing trends and inflationary cost pressures, particularly in the areas of salaries and wages, insurance and claims, and parts and maintenance related expenses,” he said. Added J.B. Hunt President Shelley Simpson: “We're in a challenging freight environment where there is deflationary price pressure for an industry that continues to face inflationary cost pressures. Simply stated, we're in a freight recession.”
7.2
“Canadian carloads rose 7.2% in March 2023 and year-to-date carloads were up 11.2%, thanks to much higher carloads of grain and other farm products. Canadian intermodal was down 11.7% in March and down 8.3% in the first quarter.” — the April 7 edition of AAR Rail Time Indicators, issued by Association American Railroads
11.0
“Mexican carloads were up 11.0% in March 2023; intermodal was down 0.9%. In the first quarter, Mexican carloads and intermodal were up 3.3% and down 1.4%, respectively.” — the April 7 edition of AAR Rail Time Indicators, issued by Association American Railroads
12.0
The expenditures component of the Cass Freight Index fell 1.5% month over month (m/m) in March, and 12.0% year over year (y/y) after a 9.7% y/y decline in February, Cass Information Systems Inc. officials said on April 14. “With shipments down 1.0% m/m in March, we infer rates were down 0.4% m/m,” Cass officials said. On a seasonally adjusted basis, expenditures fell 2.8% m/m in March, with shipments down 3.8% and rates up 1.1%. The expenditures component rose 23% in 2022, after a record 38% increase in 2021.
13.3
“U.S. intermodal volume fell 13.3% in March 2023, its 13th straight year-over-year decline and 19th in the past 20 months. In the first quarter, volume was 3.024 million containers and trailers, down 10.3% from last year and the lowest first-quarter total for intermodal since 2012.” — the April 7 edition of AAR Rail Time Indicators, issued by Association American Railroads
20,000
“While remaining the smallest of six U.S. Class 1 railroads by revenue, the new combined [Canadian Pacific Kansas City Southern] has a much larger and more competitive network, operating approximately 20,000 miles of rail, and employing close to 20,000 people. Full integration of CP and KCS is expected to take place over the next three years, unlocking the benefits of the combination.” — an April 14 press release announcing the formal combination of CPKC
64,000
When the Surface Transportation Board last month approved the Canadian Pacific-Kansas City Southern merger, the board said it “expects that this new single-line service will foster growth in rail traffic, shifting approximately 64,000 truckloads annually from North America’s roads to rail, and will support investment in infrastructure, service, quality, and safety. And even though growth prospects for rail freight are mixed, rising interest rates make equipment leasing more attractive as both shippers and Class Is opt to maintain liquidity. That same dynamic will also influence Commercial Air Carriers as they face the same market conditions.” — April 14 newsletter from RESIDCO titled “Aero and Rail Leasing Opportunities Improve.” RESIDCO is a transportation equipment lessor and asset management company that operates and manages a freight-car and locomotive fleet.
1 million
The Federal Aviation Administration (FAA) awarded Merlin a $1 million contract to demonstrate a “highly automated” flight control system with a safety pilot, Merlin announced on April 12. In partnership with the FAA-designated University of Alaska Fairbanks UAS Test Site and Everts Air Cargo, the pilot will be the first air cargo system flown by a non-human pilot in the National Airspace System, Merlin officials said. Trials are scheduled to begin in the second quarter; Merlin will use crewed aircraft augmented with the Merlin Pilot, the company’s integrated hardware and software solution, to serve rural cargo destinations. During the initial test phase, safety pilots will monitor the experimental flight control system.
13.3 billion
Brookfield Infrastructure Corp. and its institutional partners plans to acquire Triton International Ltd. for $13.3 billion, the companies announced on April 12. Triton is “the world’s largest owner and lessor of intermodal containers,” the companies said. Brookfield owns and operates assets in the utilities, transport, midstream and data sectors in North and South America, Asia and Europe.
