0.2
“… economic indicators pertinent to railroads remain subpar. U.S. industrial output in August 2023, for example, was up just 0.2% over August 2022, while the Manufacturing PMI® (a gauge of the direction of manufacturing) was in ‘contraction’ range in September for the 11th straight month.” — the Oct. 6 edition of Rail Time Indicators, published by the Association of American Railroads
2
“I’m still buzzing from the Intermodal Expo, even though there was no conclusive evidence of an inflection, just a lot of faith. … IANA’s latest numbers seemed to confirm the general floor consensus that “things weren’t getting worse anymore” — for August, the total of a 7.5% overall decline hides the fact that domestic container traffic actually increased just under 2%.” — Independent transportation analyst Tony Hatch in a Sept. 21 message to his clients
10
Waabi and Uber Freight have entered a strategic partnership to “accelerate the safe deployment of AI-powered autonomous trucks at scale,” Waabi officials announced on Sept. 21. The agreement pairs Waabi’s core technology—the Waabi Driver—with Uber Freight’s logistics platform and marketplace technology. Over the next 10 years, Waabi and Uber Freight plan to deploy “billions of miles of Waabi Driver capacity” alongside carrier partners on the Uber Freight network — “ensuring the technology will have a meaningful impact for shippers and carriers over the long term,” Waabi officials said.
15.2
For the fifth consecutive month, motor vehicles and parts had the biggest carload gains for U.S. railroads. Averaging 15,801 per week in September, U.S. motor vehicles and parts carloads were up 15.2 % in September compared with the same 2022 month, according to the Oct. 6 edition of the Association of American Railroads’ Rail Time Indicators. Through September, U.S. motor vehicles and parts carloads were up 13.7% compared with the same 2022 period, AAR reported.
18
“The expenditures component of the Cass Freight Index, which measures the total amount spent on freight, fell 2.8% m/m and 24.4% y/y in July. … The expenditures component of the Cass Freight Index rose 23% in 2022, after a record 38% increase in 2021, but is set to decline about 18% in 2023, assuming normal seasonal patterns from here.” — Cass Information Systems Inc. report issued Sept. 18
20
Canadian Pacific Kansas City (CPKC) has set aside more than $20 million for industrial development projects over the next 18 to 24 months, said CPKC Vice President of Sales and Marketing Coby Bullard in his Oct. 2 keynote at Railway Interchange in Indianapolis. “And this is just for our carload business,” he said. “These are carload customers investing in big, heavy assets.”
42
“Updated estimates reflect Q3 EPS down a median 42% Y/Y (-2% vs. consensus), but pressure should moderate in Q4 as comparisons ease. … Earnings growth should still be less bad in 2024, but a sharper recovery in earnings and normalized profitability looks more like a 2025 timeframe.” — Baird Equity Research’s Garrett Holland in an Oct. 6 Transportation/Logistics report titled “Q3 Preview: Still Waiting for the Cycle Inflection”
53.6
In September, the Institute for Supply Management’s (ISM®) Services PMI® fell to 53.6%, from August’s 54.5%, according to the Oct. 6 edition of the Association of American Railroads’ Rail Time Indicators. “One potential worrying sign: the new orders index fell to 51.8% in September from 57.5% in August,” AAR officials said.
73
After voting by 73% to reject a tentative agreement, nearly 4,000 United Auto Workers members at Mack Trucks in Pennsylvania, Maryland, and Florida walked out on Oct. 9, according to a post on UAW’s website. Issues include wage increases, cost of living allowances, job security, wage progression, skilled trades, shift premium, holiday schedules, work schedules, health and safety, seniority, pension, 401(k), health care and prescription drug coverage, and overtime, according to UAW. The Mack Trucks strikers bring the total number of striking UAW members to over 30,000 workers across 22 states, UAW officials said.
100, 275 and 300
Key Canadian Pacific Kansas City investments in the near term include: $100 million at Laredo International Bridge in 2024, more than doubling the capacity, said CPKC Vice President of Sales and Marketing Coby Bullard in his Oct. 2 keynote at Railway Interchange in Indianapolis; $275 million to extend or build 26 sidings along the north-south corridor (“It’s all about hardening the infrastructure,” he said); and $300 million at Bensenville Yard in Chicago, with work to be completed in 2026.
103.0
The Conference Board Consumer Confidence Index® declined again in September to 103.0, down from an upwardly revised 108.7 in August, The Conference Board announced on Sept. 16. “Consumer confidence fell again in September 2023, marking two consecutive months of decline,” said Dana Peterson, The Conference Board’s chief economist. “September’s disappointing headline number reflected another decline in the Expectations Index, as the Present Situation Index was little changed. Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular. Consumers also expressed concerns about the political situation and higher interest rates.” Consumer fears of an impending recession also “ticked back up, consistent with the short and shallow economic contraction we anticipate for the first half of 2024,” Conference Board officials said.
150
The Montreal Port Authority (MPA) has officially received the $150 million allocated to a container terminal project in Contrecœur through the National Trade Corridors Fund, MPA officials said on Oct. 10. The MPA will issue a request for proposals in early 2024 to select a private partner to build the terminal, including the container yard, buildings, facilities and rail connection. With support from the Canada Infrastructure Bank and the government of Quebec, the Port of Montreal and its partners plan to develop a state-of-the-art container terminal able to handle up to 1.15 million 20-foot equivalent units, MPA officials said.
