-9.04
FTR’s Shipping Conditions Index (SCI) for November remained in deeply negative territory at -9.04 although improved from the October reading of -11.6. “The improvement was primarily due to some stabilization in capacity utilization, but utilization and rates remained very elevated, a negative for shippers,” FTR officials said on Feb 2. “Shippers market conditions were further challenged with strong freight volumes and fuel costs continuing to rise. The outlook for 2021 is better but still resulting in negative SCI readings through the year.”
-6%
New business volume of surveyed member companies representing the nearly $1 trillion equipment finance industry was down 6% year-over-year, albeit up 66% month-to-month, and down nearly 6% at year end, the Equipment Leasing and Finance Association announced Jan. 26 when releasing its Monthly Leasing and Finance Index for December.
2°
Kansas City Southern submitted a commitment letter to the Science Based Targets Initiative pledging to set a science-based greenhouse gas emissions reduction target. KCS’ science-based target will align with what climate scientists say is needed to meet the Paris Agreement goal of limiting global warming to “well below 2°C above pre-industrial levels,” the Class I said on Jan. 19.
4 to 5%
“When the pandemic clears economists think GDP could grow 4 to 5% or more,” noted RESIDCO officials in a Jan. 14 message titled “Expect the Unexpected — A Closer Look at 2021.” RESIDCO is a transportation equipment lessor and asset management company that operates and manages a freight-car and locomotive fleet. They added: “The recovery will be uneven, and available facts suggest 2021 will be challenging.”
9%
“The [Norfolk Southern Corp.] 2021 outlook for 9% revenue growth Y/Y underscores momentum in intermodal merchandise groups,” wrote Baird Equity Research Senior Research Analyst Garrett Holland in a Jan. 28 report. “The OR should reach 60% by 2H21, and the company’s improving execution should bolster confidence in NSC’s ability to close the performance gap vs. peers.”
11
For the 11th consecutive month, CN set a new record by shipping more than 2.95 million metric tons (MMT) of Canadian grain and processed grain products via carload in January, the Class I announced on Feb. 2. The January 2021 total exceeds the previous January record set in 2019 of 2.33 MMT by 27%, as well the three-year average of 2.24 MMT by 32%.
19
On Feb. 2, the United States Senate confirmed Pete Buttigieg as the 19th U.S. Secretary of Transportation.
55%
“As displayed in 2020, execution [at Union Pacific Corp.] remains strong and the trajectory to a 55% OR (or better) over time remains intact as does the freight share gain opportunity following PSR performance improvements,” wrote Baird Equity Research Senior Research Analyst Garrett Holland in a Jan. 22 report. “We think the initial 2021 outlook may prove conservative, and management likely provides more detail on longer-term operating potential at the May investor day.”
300
CSX Corp’s. Q4 2020 results “topped expectations with ~300 bps of OR improvement Y/Y, and volumes are expected to outpace GDP growth in 2021,” wrote Baird Equity Research Senior Research Analyst Garrett Holland in a Jan. 22 report. “We continue to like the intermediate-term growth opportunity, return profile, and cash flow generation CSX offers, and remain buyers of shares.”
700
On Jan. 28, logistics and global supply chain management group Horizontal International Cargo Ltd. posted the following message on its website: “Due to a sharp rise in COVID-19 cases amongst workers at Los Angeles and Long Beach Ports (close to 700 are currently affected, with many more self-isolating), there is a realistic threat of closure of both facilities. The Ports are still suffering major challenges as a result of severe port congestion, so this threat of closure would have serious consequences to inbound and outbound services.”
64,000
On the fuel theft front: Last month, Guardia Nacional “detained the driver of a tractor-trailer that was transporting about 64,000 liters of hydrocarbon without the necessary documentation” in the Mexico state of Tabasco, the Mexican federal security agency tweeted on Jan. 21.
54,995
In 2020, the Drug and Alcohol Clearinghouse issued 54,995 truck driver drug violations, reaching a “new high,” according to trucking company Schneider National Inc.’s Transportation Market Update, issued Jan. 22.
$1.55 billion
Canadian Pacific has set aside CA$1.55 billion for capital expenditures this year, the Class I announced on Jan. 26.
$2.41 billion
The maintenance component of BNSF Railway Inc.’s $2.99 billion capex plan is $2.41 billion, the Class I announced on Jan. 20. Projects include replacing and upgrading rail, ballast and ties, and maintaining rolling stock. The plan includes nearly 11,000 miles of track surfacing and/or undercutting work and the replacement of 428 miles of rail and approximately 2.6 million rail ties, BNSF said.
$3.0 billion
“We are also pleased to be announcing our plans for C$3.0 billion of capital investments to stay ahead of the demand and keep meeting our customers' needs through safe and efficient operations.” CN President and CEO JJ Ruest, in announcing the Class I’s Q4 2020 financial results on Jan. 26.
4.68 million
The Georgia Ports Authority (GPA) moved more than 4.68 million 20-foot equivalent container units (TEUs) in 2020, up 1.8% over its 2019 total of 4.59 million, the agency reported on Jan. 25. Total cargo crossing all docks in 2020 reached 38.4 million tons. Memphis customers accounted for 178,000 TEUs of loaded rail cargo for the Port of Savannah, an increase of 3% or more than 4,800 TEUs. Memphis is GPA’s second busiest inland rail market after Atlanta. With Phase I of the Mason Mega Rail Terminal operational, CSX and Norfolk Southern Railway are able to make cargo available for pickup in Memphis within three days of being offloaded from a vessel. Major Memphis exports crossing GPA docks include cotton, logs, chemicals and machinery, while major imports include auto parts, electronics, furniture and apparel.
38 million
Nearly 38 million tons of cargo “transited” the St. Lawrence Seaway during its 2020 navigation season, which “closely matched” the 2019 season’s total, the St. Lawrence Seaway Management Corp. announced on Jan. 19. “While the volatility from COVID-19 impacted the marine industry, the Seaway worked with carriers and shippers to maximize cargo opportunities and confirm its competitive position in North America’s transportation system,” said President and CEO Terence Bowles. “The Seaway’s resiliency and agility in operating allowed it to handle numerous steel slab movements and a record grain crop in 2020.”
$14.6 billion
In issuing its preliminary 2020 results on Jan. 27, global liner shipping company Hapag-Lloyd said revenues increased in the 2020 financial year by roughly 3%, to $14.6 billion. “This is caused by an improved average freight rate of $1,115/20-foot equivalent units (2019: 1,072 USD/TEU), whereas transport volumes were slightly below the level of the previous year at 11.8 million TEU (2019: 12 million TEU) or -1.6%,” the company said.
$84.6 billion
UPS recorded a 14.2% revenue increase in 2020, to $84.6 billion. The revenue total was the highest in company history, the package delivery company said in revealing its 2020 earnings on Feb. 2. As we look past 2020 into the new year, we are optimistic,” said UPS Chief Executive Officer Carol Tomé. “During the fourth quarter, we began transporting COVID-19 vaccines and we stand ready to deliver hope and health to people around the world.”
