Commentary

Counting on Rail Congestion as a Rail Equipment Demand Driver is Not a Sustainable Long-Term Strategy

Written by Matt Elkott, Jason Seidl, Bhairav Manawat and Elliot Alper, TD Cowen
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Left to right: Panelists David Nahass, Kevin Cook and Bob Pickel.

Our July 12 rail equipment expert call takeaways are consistent with J.B. Hunt Transport’s (JBHT) recent comments on about sub-optimal 2Q22 rail service (below). This solidifies our expectation of an eighth consecutive lease rate improvement for GATX, which reports on July 21. We continue to favor the shares into the print as detailed in our July 7 machinery and transportation OEM preview, “Revisions Into the Print.”

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