For the week ending May 8, 2021, U.S. intermodal volume came in at 287,290 containers and trailers—climbing 26.3% from the same week last year and continuing a double-digit growth pace, reported the Association of American Railroads (AAR) on May 12.
Picture a customer who receives a hefty invoice from an auto repair shop with several additional charges and no details regarding the nature of these fees. The customer is left facing the question of whether to dispute the bill, and if so, how. Such has been the experience of U.S. rail shippers in recent decades when receiving invoices from the railroads for demurrage charges, which are applied by railroads for costs incurred when shipments are held up beyond a reasonable time.
Railway Age’s seventh annual Rail Insights Conference will be a three-hour virtual event on June 17 featuring top industry speakers, including BNSF President and CEO Katie Farmer.
Railcar demand is on the rise, but so is the price of steel, which Cowen and Company estimates has put a 15%-25% premium on newly built equipment.
CN reported May 7 it will purchase 1,000 high-capacity hopper cars from TrinityRail, a move that follows 14 consecutive months of record grain hauls as demand continues to grow in Canada and abroad.
The Surface Transportation Board on May 6 approved, by unanimous vote, a voting trust for Canadian Pacific’s proposed merger with Kansas City Southern. “The Board finds that formal Board review of the voting trust agreement proposed for use in connection with this transaction is warranted and determines that the proposed arrangement is acceptable with certain modifications,” STB wrote in Docket No. FD 36500.
At Union Pacific’s Investor Day, where achievements in operational efficiency, benefits of PSR implementation, shareholder returns and financial outlook were discussed, management predicted that the railroad will achieve a 55% OR (operating ratio) by 2022. As a result, Cowen and Company modestly adjusted its 2022 assumptions.
“A number of U.S. rail traffic categories have completely recovered ground lost during the pandemic or are very close to doing so,” AAR Senior Vice President John T. Gray noted in the AAR traffic report for April 2021 and the week ending May 1, 2021.
Utah-based global transportation and logistics company Savage has opened Savage Railport in Tooele, Utah, described as “a multi-commodity transload facility strategically located to serve Salt Lake City and surrounding markets.”
The May 2021 issue of Railway Age is available digitally, covering topics from carbon neutrality and cybersecurity to the rebirth of streetcars, and showcasing the honorees of our second-annual Readers’ Influential Leaders poll.