There are multiple contrasting intermodal market outlooks for 2020. Intermodal volume growth is illusive in 2020. One thing is certain: Fewer new intermodal cars are needed.
Rail Equipment Finance 2020
Cowen and Co. analyst Matt Elkott participated in the 2020 Rail Equipment Finance Conference (REF) in La Quinta, Calif., the largest annual gathering dedicated to North American freight railcars and locomotives. He offers the following observations:
RAILWAY AGE AT RAIL EQUIPMENT FINANCE 2020, LA QUINTA, CALIF: Did anyone “get it right” on 2019 intermodal traffic? What can be said about 2020? The industry needs to understand how the events of 2019 affected traffic volumes, and then consider the uncertainties of 2020—for example, the impact of the Coronavirus on world trade—to try and forecast what will happen this year. RSE Consulting President Ron Sucik, who retired from TTX following a long and distinguished career, offered his observations at REF 2020.
RAILWAY AGE AT REF 2020, LA QUINTA, CALIFORNIA: Lee Ohanian, Professor of Economics at UCLA, gave a cautiously optimistic keynote address to the 350-plus attendees at the 34th annual Rail Equipment Finance Conference. Following are several key takeaways: