U.S. rail traffic last week fell 8.9% year over year and was 17% lower than the same week in 2007. Thus while traffic is still down substantially, it appears to be getting better.
We’ll bet that Warren Buffett ends up picking up Burlington Northern (BNI) during one of rail’s darkest hours, and right before traffic starts to stabilise.
AAR: Canadian railroads reported volume of 71,802 cars for the week, up .9 per cent from last year, and 41,443 trailers or containers, down 10.9 per cent from 2008. For the first 45 weeks of 2009, Canadian railroads reported cumulative volume of 2,800,134 carloads, down 20.3 per cent from last year, and 1,848,189 trailers or containers, down 15.6 per cent.
Mexican railroads reported originated volume of 12,721 cars, up 1.3 per cent from the same week last year, and 6,775 trailers or containers, down 2.8 per cent. Cumulative volume on Mexican railroads for the first 45 weeks of 2009 was reported as 518,576 carloads, down 11.6 per cent from last year; and 244,943 trailers or containers, down 16.6 per cent.
The author owns shares of BNI.