A previous near consensus 86,000 car forecast earlier for this year is dropping.
80,000 to 84,000 level may now be more more likely. Or lower?
Tank cars, frack sand cars, and coal cars most likely to fall off the pace based on current spring railroad traffic reports.
From Bloomberg, 16 June
The agency reports that Greenbrier Cos. fell the most in almost seven months after Stifel Financial Corp. analysts estimated that railcar demand will be hurt by a decline in oil prices.
To read the entire article, go to http://bloom.bg/1FkFoDo
Stifel estimated production will be 84,000 railcars this year, less than transportation consultant FTR Associates’s outlook of 86,000.
History shows us how volatile the year to year North American rail car market can be as this SUPPLY SIDE changes to reflect DEMAND SIDE economics.