Per a PFL report:
Earnings are out for all the Class ones – bottom line, across the board, is not good. Traffic is down and so is revenue. People looking for cars hit an all-time low last week. With the arb officially closed in Mexico, propane demand delivered there has subsided. This is due to Pemex lowering their price for product sold within. What continues to be active is cars headed for storage as more cars continue to roll off the line without a home. There is also demand for short term loaded cars. Canada is phasing out DOT 111 for crude use now earlier than the United States and has targeted the date to be
Canada is phasing out DOT 111 for crude use now earlier than the United States and has targeted the date to be November 1. This is 16 months earlier than anticipated. This directive should have little impact on the market mainly due to so many crude cars in storage. A new proposed rule for box cars would be a welcome relief for lessors. In effect, the rule would extend the life of a box car by 15 years to 65 years. Box cars are in high demand and are costly to build relative to lease rates users are willing to pay.