• The Gathering Storm

  • For topics on Class I and II passenger and freight operations more general in nature and not specifically related to a specific railroad with its own forum.
For topics on Class I and II passenger and freight operations more general in nature and not specifically related to a specific railroad with its own forum.

Moderator: Jeff Smith

  by Gilbert B Norman
 
Nobel laureate and Times columnist Paul Krugman foresees a bad economic storm ahead, and while not explicitly stated in his "macro" views, the railroad industry can only be looking at "hurts":

Fair Use - as if effects two major classes of traffic:

Building materials:
Higher interest rates lead to reduced demand for houses, which leads to a fall in construction; as incomes earned in housing construction slide, this leads to reduced demand for other goods, and the effects spill over to the economy at large.

But all of this takes a while. The Fed’s rate hikes have indeed led to a sharp fall in applications for building permits. .
And with less household appliances coming from overseas, think of the effect upon Containers:
Oh, and remember all those supply-chain problems that disrupted the economy and raised inflation some months back? Well, the cost of shipping a container across the Pacific, which was $20,586 in September 2021, is now $2,265
OK, agriculture gets a pass; the world still must eat. And coal? Well that already, save an "uptick" owing to the War, that's already the biggest looser.

Atlanta, Jax, Ft. Worth, Omaha, Calgary, and Montreal; are you reading?
  by eolesen
 
Something tells me that the service level problems over the last year are suddenly going away.

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