Canadian Pacific reports that it has broken all-time records for grain shipments, moving 2.64 million metric tonnes (MMT) of Canadian grain and grain products in October, the railroad’s biggest month ever for this commodity. The previous record was set in September 2017. CP also set a new record for biofuel shipments.
Norfolk Southern made a key executive appointment as it took another step in its previously-announced plan to implement Precision Scheduled Railroading.
Surging shipments of crude-by-rail are fast putting other commodities in the rearview, while U.S. trade policy slows grain exports by domestic growers, according to the Association of American Railroads.
Carload commodity freight on U.S. railroads continued to slow but intermodal shipments set a brisker pace through the first 10 months of this year.
If the latest commodity carload data are any indication, there could be uncertainty ahead for the U.S. economic rally.
The math for North America railroads is simple: A surging economy plus Precision Scheduled Railroading equals record profits.
Commodity and intermodal rail traffic continued to finished in positive territory for the latest week, but at a much slower pace than earlier in the year.
With rail as a central piece, the Port of New Orleans saw its development plans honored as it transforms the busiest U.S. Gulf maritime gateway.
“We have no skepticism in Canadian Pacific’s post-Hunter world, said Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl in comments on Canadian Pacific’s Oct. 4 investor day and 3Q2018 preliminary results. “We are encouraged by CP’s opportunities in intermodal and grain, and believe that increased free cash flow will give management the option to raise the dividend or pay down high yielding debt. We raise our price target to $236.”
During its 2018 Investor Day, Canadian Pacific Railway on Oct. 4 reported preliminary third-quarter results, updated its 2018 guidance and unveiled the next phase of its long-term strategy, which it said is “focused on driving sustainable, profitable growth.”