railcar supply

Congressional leaders push for tax credit for scrapping older railcars

Boxcars whizzing by a blocked rail crossing.

A bipartisan group of congressional leaders is trying once again to push through legislation to provide a tax credit for companies seeking to replace or modernize “inefficient, outdated” freight railcars.

Reps. Bradley Scott Schneider, D-Ill.,and Darin LaHood, R-Ill., introduced the bill, H.R. 7902, the Freight Railcar Act, last Friday. 

It has 29 co-sponsors, all of whom have previously signed on to a similar bill in past legislative sessions.

An iteration of this bill was first introduced in the...

https://www.freightwaves.com/news/congressional-leaders-push-for-tax-credit-for-scrapping-older-railcars

How railcar backlogs reflect market dynamics

A photograph of a train passing by a rail crossing.

During earnings season, railcar manufacturers will discuss the size of their railcar backlog. What are backlogs and why are they important? This AskWaves article will look at this topic.

What is a railcar backlog?

A backlog is simply the orders for railcars that leasing companies, railroads and private businesses such as chemical companies and banks place with railcar manufacturers that have not yet been delivered by the manufacturers.

As a manufacturer delivers an order of railcars, the backlog...

https://www.freightwaves.com/news/how-railcar-backlogs-reflect-market-dynamics

Why is the number of railcars in storage important?

A photograph of railcars parked in a rail yard.

Rail equipment manufacturers, suppliers and industry observers will talk about the number of railcars in storage being up or down. But why is that figure important?

Knowing how many railcars are in storage is significant because that figure helps observers understand network capacity in relation to the broader economy. Industry participants also look at the number of railcars in storage by railcar type to gauge expectations for where railcar lease rates are heading and the volume of orders that...

https://www.freightwaves.com/news/why-is-the-number-of-railcars-in-storage-important

Global railcar market improving and poised for more growth: Greenbrier

A photograph of a tank car.

A focus on sustainability could be a boon for railcar manufacturers as European and North American customers pursue larger, higher-capacity railcars as a means to optimize rail shipments while reducing their carbon footprint by using rail, according to executives with railcar manufacturer Greenbrier.

“Already we’re seeing customers that are very interested in that environmental aspect. … It’s being driven by higher capacity, more efficient cars, fuel-efficient cars. And the current...

https://www.freightwaves.com/news/global-railcar-market-improving-and-poised-for-more-growth-greenbrier

GATX third-quarter net profit increases on international businesses

A photograph of a GATX tank car parked in a rail yard.

GATX’s (NYSE: GATX) net profit rose 6% in the third quarter despite revenue declines for its North American rail segment.

Net income was $47.9 million in the third quarter of 2020 for the railcar lessor, compared with $45.1 million in the third quarter of 2019. Net income from continuing operations was $48.2 million, or $1.36 in diluted earnings per share, in the third quarter, compared with $37.2 million, or $1.03 in diluted earnings per share, in the third quarter of 2019. 

The difference...

https://s29755.pcdn.co/news/gatx-third-quarter-net-profit-increases-on-international-businesses

Rail stakeholders consider pressing for tax subsidies to scrap railcars

A photograph of two tank cars in a rail yard.

Industry stakeholders are considering options to relieve the railcar supply glut amid the continued downward trend in U.S. carload volumes.

Those options include discussions on whether to push for federal tax incentives that would allow companies to receive tax subsidies for scrapping older and idled railcars, according to a July 29 research note from investment firm Cowen.

“A resuscitation of a long-futile push for railcar scrappage tax subsidies may be underway. While the effort is in its...

https://s29755.pcdn.co/news/rail-stakeholders-consider-pressing-for-tax-subsidies-to-scrap-railcars

Pandemic, economy and market oversupply weigh on GATX’s 2020 view

A photograph of a train consisting of tank cars imprinted with GATX's name.

As railcar lessor GATX (NYSE: GATX) looks at the second half of this year, there are three prominent factors that could put pressure on the company’s lease rates, renewal activity and asset utilization.

Those factors are a potential second wave of the coronavirus pandemic in the U.S., economic uncertainty both in the U.S. and abroad, and an overabundance of railcars currently in the market, executives said during the company’s second-quarter earnings call on Tuesday, July 21. 

“We need to see...

https://www.freightwaves.com/news/pandemic-economy-and-market-oversupply-weigh-on-gatxs-2020-view