We attended the NEARS (Northeast Association of Rail Shippers) City Series event in New York City and hosted a call with a Farrukh Bezar, Chair of STG Logistics. Following are our takeaways.
We hosted an investor dinner with CSX in New York City. Near-term risks to costs remain, pricing outlook appears competitive while end markets remain mixed for the near term. Regulatory environment should
We hosted a call with industry executives on the rail equipment outlook, as a strong start to 2025 is overlooked due to pull-forward and causing shippers to delay large asset purchases. Coal
We adjust our models ahead of a first quarter that came with severe weather, pull forward, and growing macro uncertainties that could limit upside over the near term. We broadly lower estimates
Rate hike expectations fell 20bps sequentially, trending below the survey’s LT average. Business growth fell sharply to levels not seen since COVID. Economic confidence fell back to pre-election levels as optimism fades. 44% of shippers pulled freight forward ahead of tariffs as uncertainties grow. We are cautious on the rail group ahead of earnings, and favor Union Pacific (UP) for U.S. rail exposure.
We attended the Southwest Association of Rail Shippers 2025 Annual Meeting in Dallas, March 18-19. Macro uncertainty was a clear theme across multiple presentations. Class I’s and short lines attested to tariff-related
Equipment industry panelists expect muted 2025 railcar demand amid elevated interest rates and trade uncertainty affecting carloads as well as input prices. Disruptions are likely to benefit secondary market valuations. Labor and
Rate hike expectations +30bps sequentially, though still below survey average. Biz growth & confidence stepped up significantly in first survey post-election. 26% of shippers have pulled freight in anticipation of tariffs, and
At its Nov. 6-7, 2024 Investor Day, CSX outlined a long-term vision for growth. Management, led by President and CEO and Railway Age 2025 Railroader of the Year Joe Hinrichs, focused on
We hosted a call with Farrukh Bezar, Chairman of the Board at STG Logistics, the fourth-largest asset-based intermodal marketing company (IMC), on the state of the rail network, intermodal into 2025, and