courtesy: Steve Jurvetson
Inside This Issue
· Earnings Season Awaits: Q2 Reporting Coming Soon
· Last Laugh in the First Half: RRs Grew, Despite Coal Crunch
· Teamster Tension: Canada Rail Union Still Talking Tough
· Here We Go Again: New Round of U.S. Labor Negotiations Begin Soon
· That’s My Business: UP Unveils New Biz Development Moves
· Ills of the Mills: More Signs of Manufacturing Weakness
Track Talk
“Workers are on the defensive in these negotiations, with both companies [CN and CPKC] demanding a wide range of concessions on issues pertaining to crew scheduling, hours of work, and fatigue management. The stumbling blocks are company demands, not union proposals.”
-Statement from the Teamsters Canada Rail Conference (TCRC) union
The Latest
· At the halfway point of 2024, through week 26, North America’s railroads can at least say they’ve grown business so far this year. AAR figures show first half carload volumes up 2% y/y across the continent, even with coal plummeting 16%. Coal is a
concern, for sure. “However,” AAR chief economist Rand Ghayad said in a statement, “this [coal] decline is balanced by growth in other sectors, including chemicals, motor vehicles, and intermodal shipments.” The positive vehicle and intermodal trends, he added, reflects ongoing strength in U.S. consumer spending.
· Railroads will begin reporting their second quarter financial results later this month. Canadian National will go on July 23rd. Union Pacific and Norfolk Southern will go on July 25th. Others haven’t yet announced their dates but probably will this week. Industry suppliers, partners, and customers will report this month as well, starting with railcar supplier Greenbrier this week (Monday, July 8th); Greenbrier’s report will detail its fiscal third quarter covering the months of March, April, and May. Also early on the reporting calendar is J.B. Hunt, which goes next week (on July 16th).
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