Why US Railroads' Operating Ratios Are Safe From Freight Woes
Zacks Investment Research | Sep 24, 2019 08:44AM ET
The soft freight scenario in the United States is a major headwind to railroad operators as a bulk of its revenues is derived from freight. The dismal scenario with respect to rail freight traffic in the United States is highlighted by the Association of American Railroads’ (“AAR”) data.
Notably, AAR refers to the industry trade group representing mainly the major freight railroads of Canada, Mexico and the United States. Per AAR, U.S. rail traffic (including carloads and intermodal units) has declined 3.7% this year through Sep 14.
The slowdown in global trade due to the Sino-U.S. trade tensions apart from inclement weather has hurt volumes this year. In fact, according to the latest Zacks Investment Research
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