Logistics Investing: Rail Shipments Lock In Second Best First Quarter Ever
The Association of American Railroads says rail shipments are charging down the tracks. Although Oil (NYSE:USO) should dampen the economic recovery, for the moment stats are very positive. According to Bloomberg:
“Total rail volumes excluding grain and coal shipments rose 7.9 percent to 4.6 million carloads in the quarter ended March 31. It was the second-highest increase in a first quarter, following last year’s 9.3 percent rise.”
That’s almost twice the growth rate from the last economic recovery between 2003 and 2006.
Rail stocks are mixed on the news. Winners include Union Pacific Corporation (NYSE:UNP) and Norfolk Southern Corp. (NYSE:NSC), while losers include CSX Corporation (NYSE:CSX), Kansas City Southern (NYSE:KSU) and Canadian National Railway (NYSE:CNI).