Monday, May 10, 2010

Centerbeam Supply Tightens

Class A railroads are reporting increased demand for Centerbeam cars. The western class A railroads have reported pulling centerbeams out of storage to meet increased demand. In addition the the rising demand for Centerbeams, flatbed truck supply is now tight as well. It appears there is some inventory replenishment and inventory building in industries that utilize centerbeam type cars. Truck rates are beginning to increase in selected lanes and industry in the Pacific Northwest is reporting flat beds becoming increasingly difficult to fine. While there is no indication that rail rates will increase there does appear to be a return in interest of shipping by rail from lanes that have been dominated by trucks in the last couple of years.