Today's Wall Street Journal noted that Argentine wheat is showing up n U.S. and Singapore since Macri eliminated the export tariff. This should bring in the U.S. dollars that Argentina needs to pay off the dollar denominated bonds that has caused such a ruckus.
The good is that I am still seeing empty coal trains going back to Kentucky - not many, but some. Someone was complaining to me about the very low price for scrap iron and if scrap is moving, it must be coming from somewhere else in the country.
There are still occasional shipments of pipe for gas pipelines, it has a green coating on it. But coiled steel shipments are way down.
What are they using to build the new tank cats and covered hoppers?
The plywood plant near here is ramping up production, however they are still turning out only 5 or 6 boxcars a day.
The container port near here has acquired more land to store empty containers because there is nothing to backhaul. Anybody want to buy some slightly used containers to turn them into housing?
The fact also is true - if you buy products at Walmart, it gets shipped in by container, usually utilizing rail. If you buy from Amazon MOST of the products come UPS, utilizing planes.
The country needs to lower the minimum wage to a) bring more production back into this country b) reduce the rate of exchange so that Asians and Europeans can afford what we produce.
Do you really think that there would not be anti-trust issues with BNSF and NS or CSX?
Do you really think that BNSF trains do not come east of the Mississippi?
Do you know what a pool train is?
BNSF goes as far east as Birmingham
There are 2 BNSF container trains from Los Angeles and Long Beach to Fairburn, Georgia daily on CSX. There are daily pool trains of coal on NS from Powder River Basin to Plant Scherer, Georgia because PRB is almost one fourth the price of Appalachian coal
Google "EIA coal prices"
Bloomberg - Canadian Pacific Railway Ltd. surged the most in more than two years as speculation mounted that the company may drop its attempt to purchase Norfolk Southern Corp.
Keep something in mind: When a fuel surcharge is in place, the cattle processors and the chicken processors will spend a lot more effort to purchase feed grains locally, giving a significant reduction to the number of 100+ grain trains that you see.
Google "Cleveland 1944 gas explosion". This was a turning point in storing natural gas above ground.
Maybe 2 weeks, but futures are climbing for later in the year and oil exploration is being cut back.
What about all those coal fired power plants sitting out there? Some can be converted to gas- if there is a 36 iNG pipeline near at hand and it has extra supply. Georgia power ran a 36 inch line about 40 miles from a hub near here to convert one plant, but one of the biggest coal fired plants in the Easti s too far from any pipeline.
The Obama administration on Friday brought a temporary halt to new coal mining leases on federal lands while it conducts a three-year review meant to bring coal leasing in line with U.S. climate policy.
The moratorium comes just days after Obama said in his State of the Union Address that he would push to change the way the government manages its oil and coal resources to reflect the costs they impose on both taxpayers and the planet. The moratorium takes place immediately, but does not halt coal mining and production currently underway.
Ward is good, but don't forget Clarence Gooden impresses me, too.. But both of these men are over 65. Who would have guessed that Oscar would a) leave b)have major health problems.
I just hope that they have people on the second string ready to take their places. Do you really think that they will stay around for 10 more years. I don't.
The mood is set by the Chinese Market. After yesterday's U.S. market everything should be rosey today . BUT Shanghai is down over 3% today. watch for a rough ride.
Do you REALLY want a merger? Elect Bernie Sanders as president and he will nationalize all the railroads. Right now CSX is not in the #3 and #4 ranked major metropolitan areas in Georgia, Columbus and Macon. Bernie will fix that, just do not expect .to get your money back. Has everybody read up on US Railway Administration during World War 1? The railroads were not bought up by Washington, they just ran them for several years and they did not plan for track maintenance and they raised the pay of railroad workers far above what they had been paid. After the war was over and the corporations got their track and all the workers went out on strike because they were expected to their old pay levels back, many of the railroads went bankrupt. Larry Goolsby's book: "The Atlanta, Birmingham and Coast Railroad" shows best what happened in the South. Morris Cafky's book "The Colorado Midland Railroad" is the definitive book on how to destroy the shortest route across the Colorado Rockies.
I wrote a system for feeding chickens corn and soy from hatching until they were ready for market You better believe that we hedged our corn and soy futures on that system. Of course we did not hedge 100%, but I sanded some of the rough edges off of price swings. The airlines do the same thing with fuel.
When we were able to hedge our futures on whole birds, we did that, too.
All right , the customer has to bear the burden for an increase in fuel costs. But from what I see, the operation is not smooth.
Why would I care? If the dividend remains I would not. You need to read a biography on Warren Buffett and his remarks at the Berkshire-Hathaway annual meets.
When you know that fuel is at a low, CSX should be a) buying oil futures b) Like Delta Airlines, buy a refinery. Share buybacks are foolish, it just makes the shareholders feel better, so they will approve the board of directors . Reducing fixed costs by calling bonds is the wise thing to do, it reduces fixed costs for years to come.
You must have lived your life in the south. Oil is still used for heating in New England. There is nothing like walking the length a train of 100 50 foot tank cars to couple cars together in sub zero weather to make you want to move south. I did it until I could get an indoor job.