AAR Points Me To Jobs Potential In Metals
Rail freight figures struggle forward. Jobs alert: Metallic ores triple. Metals are up. (And, by the way,will Congress drive rail freight rates higher?)
Time to check the rail reports:
AAR continues to report mushy progress as rail freight struggles to recover. Each category was up 4% – 5%, year over year, and down 16% – 20% from 2008.
Interestingly, Canadian and Mexican rail freight is faring much better.
Looking for the strength, metallic ores are running triple last year’s activity. Metals and metal products are up 69.8%.
Will Clean Energy Clean Out Clean Shipping?
On a side note, AAR reminds us that 25% of railroad revenue comes from carrying coal.
May 25, AAR CEO Edward R. Hamberger met with the Congressional Coal Caucus, where he shared the significance of that statistic.
Using more elegant terms than mine, Mr. Hamberger explained that when the government sets out to destroy the coal industry, it is also damaging the single most cost effective form of freight transportation we have.
Ironically, the administration’s announced reason for killing off coal is to achieve environmental benefits. Without a doubt, the most environmentally friendly way to transport goods is by rail.
Congress seems to be in a conflicted position.
The gentleman has a point.
Again and again, we’re seeing the metals world coming around. Watch this theme. Jobs will follow.