Less Freight but Revenue Growth Great

Railroad Weekly Aug. 8, 2022

Inside This Issue

·   BNSF: Less Freight but Revenue Growth Great  

·   Disorder South of the Border: Intermodal Frustrations for Ferromex

·   Recession? What Recession? U.S. Job Market Still Red Hot

·   Fuel’s Fall: Has Inflation peaked?

·   Railing Against the Railroads: More Customer Complaints

·   Those Intermodal Frustrations: When Will the Bottlenecks End?

Track Talk

“Union Pacific is right now investing about $600m into the intermodal product. Their on-time performance is under where we would want, and certainly where they would want. But they certainly are making a lot of investments in personnel [and] adding locomotives.”

-  Hub Group CEO Dave Yeager

The Latest

·   Berkshire Hathaway’s BNSF and Grupo Mexico’s Ferromex—the latter 26% owned by Union Pacific—became the last of North America’s publicly traded railroad giants to post their second quarter financial results. Both companies are highly profitable, but somewhat less profitable than their peers, at least last quarter.

·   Recession? What recession? A super-strong jobs report suggested the U.S. economy