Rail Traffic Signals Continued Recovery

It’s been a few weeks since I updated railroad data posts here so let’s take a look. Total N. American rail traffic came in a 689k cars last week, a 30K car YOY increase.

Here is the chart:
Capture

Now the common push back I get from those who doubt the rail data is signaling economic strength is “oil shipments from Bakken are the reason for the increase”. Lets look at the numbers. It is true, the “oil/chemical” category was up 7k carloads(56k-63k) last week, about a 12% increase over last year. BUT, that was wholly offset by the continued decline in coal shipments of 6k carloads (127k-121k) as utilities continue to switch to nat gas for generation. So, net/net the “energy effect” of coal to nat gas and increased Bakken oil production for the railroads has been negligible.

Here is that chart:
Capture1

So that leaves us with only one scenario…… the economy continues to grow. In fact continued strength is seen in auto, metal, and stone & related products categories (think manufacturing and construction) which bodes very well going forward.




To see more posts on any of the companies mentioned in this article, enter their stock ticker symbol in the search box.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Value Plays Blog
  • Todd Sullivan

    Todd's investing strategy is essentially long with the rare short. He seeks to buy undervalued issues with an upcoming catalyst that will help them realized.... More »

  • StockTwits Follow Todd Sullivan on StockTwits Follow Todd Sullivan on Twitter Follow StockTwits on Facebook Subscribe to ValuePlays RSS via Email Subscribe to ValuePlays RSS
  • Value Investment conference
  • Archives

  • Tag Cloud

  • Recent Comments

  • Join StockTwits