News / 'Challenging' time for N American railroads as Q2 numbers disappoint

© Jessica Kirsh

Continued destocking appears to be behind the collapse in rates that has seen second-quarter intermodal financial performances of North American railroad operators hit the buffers.

Revenues for the three months to July at Canadian National fell 26%, to C$983m (US$746m), with CSX reporting an 18% fall, to $492m, and Union Pacific a 20% drop, to $1.1bn, leaving UP CEO Lance Fritz hesitant on full-year prospects.

He said: “We expect challenges in the intermodal market from continued inventory destocking, inflationary pressures and ongoing ...