Ok guys, this is reality. Only the strong will survive in the railroad industry. Hard recession is coming like a runaway freight train. In the railroad industry, the east coast will get hit first. The west will see a lagging effect. Something called stagflation is in the works. Recession with inflation. A double whammy.
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Low oil cost is good for trucking and rail. Recession will hit the trucking industry harder than rail because it’s more expensive to ship via trucks than rail. In the long run, rail will have more business during a recession due to the low cost in shipping.
Tell me more about how low oil prices drives volume away from trucks and towards railroads...
(Cue Wi--y Wonka meme...)
Oil price crashes today due to low demand forecast. Great news for railroads. Once again bad news for the general economy. Oil is forecasted to drop to $55 gallons per barrel. Around the same cost as the 2008 recession. China is currently the #1 consumer of petroleum oil. With the China economic in financial stress, they may drop to #2. The petroleum oil producing OPEC nations will feel the crash. Perhaps this oil price crash will derail their attack on the petro US dollar.
Read more latest news for a colapse in the trucking industry due to the low cost in rail. This will hurt the tracking industry but create jobs in rail.
OMAHA, Neb. – Union Pacific will expand its international intermodal service from Port Houston to four additional markets beginning Dec. 1.
The service will link the on-dock Barbours Cut Container Terminal with UP terminals in Chicago; Kansas City; Marion, Ark.; and Port Laredo, Texas, UP announced Tuesday (Nov. 28).
The addition of the four lanes brings the total to nine that UP serves from Port Houston.
UP launched service in May from Barbours Cut to Denver; Salt Lake City; Oakland, Calif.; Los Angeles; and El Paso, Texas.
The on-dock service eliminates the need for containers to be trucked approximately 30 miles from the port to the Settegast terminal for loading onto rail cars, reducing highway congestion in the Houston area.
Do to the upcoming recession in 2024. Business are crossing over into rail due to the low cost vs trucking. Read the latest news about Phoenix Arizona.
UP says it will begin daily service between Phoenix and the ports of Los Angeles, Long Beach, and its Intermodal Container Transfer Facility in Long Beach during the first quarter of 2024.
The railroad estimates that converting tens of thousands of truckloads per year to intermodal will allow shippers to avoid 25,214 metric tons of greenhouse gas emissions annually. UP would not disclose the terminal’s annual lift capacity.
The terminal will open with the ability to handle 20-foot and 40-foot international containers. UP says it will evaluate expansion of the terminal and its service offerings in the future.
The Phoenix facility follows the “pop-up” intermodal terminal strategy that UP has used to test the market before committing the capital required to build larger, permanent terminals. The others are at West Colton, Calif., in the Inland Empire transload district, and in the Twin Cities.
Fed will slash rates in first quarter to avoid ‘hard landing’: Bill Ackman
The problem is that inflation is not controlled yet. Cutting the feds interest rate to early to avoid a hard landing recession is that it will create hyper inflation and in response the devaluation of the US dollar.
What do you prefer. Hard recession vs hyperinflation with the devaluation of the money supply ?
GDP expectations for 2024 is much much lower than 2023. National debt is going to surpass 33 trillion by the end of this year. The national debt ($33.83 T) is the total amount of outstanding borrowing by the U.S. Federal Government accumulated over the nation's history. US treasury will have to borrow tons of money from investors by issuing more treasury bonds at high interest rate. The U.S. Federal Reserve controls the supply of money in the U.S. When it expands the money supply using monetary policy tools, it is often described as printing money. Uncle Sam keeps spending money like a drunken sailor. The Feds keep printing money like lunatics, to supply Uncle Sam drinking habits. The outcome is inflation with a touch of recession. Stagflation in 2024.
@OP They’ve been predicting a recession pretty much everyday since the beginning of 2021.
Still waiting…..
Oh yeah, just got back from mall…totally looks like a miserable recession is on the horizon…Keep drinking the MSM kool aid, I’ll keep living in real life
Two more weeks guys I promise!
@1OOA+. I do believe your correct with your assessment of the economy but you listed high unemployment rate, I have to disagree on that point. It’s currently 3.9% one of the lowest unemployment rates ever, now I do believe that will rise next year, and I do believe we are headed for a recession as well. Hard not to have a recession when big companies squeezed every dime out of the American citizen over the last 3 years by raising their prices and calling it (inflation) magically all big companies reported historic record profits the last couple years, some doubled and tripled their profit margins. Good thing they made so much because they won’t make much the next couple of years so fu-k em!!
@1ooa OK so what are your sources again? The sources you listed say nothing about potential layoffs. Instead of posting your opinions, try posting actual facts about your "writing on the wall"
I believe railroads do good in recessions due to low cost shipping compared to trucking. We will see.
Trainstradamus dropping truth bo--s.
Source: Trust me bro
Like the run away train in Mojave?
Sources are the current economic indexes, private company quarterly reports, bond yields reports, Fortune 500 company CEO forecasts, low fuel demand, high unemployment rate, consumer price index, geopolitical events, high US national Debt, current freight recession, current comercial and residential real estate recession, high federal interest rate, high automotive loan defaults, high consumer credit card loan defaults, high 401K withdrawal rate and others are all flashing red lights for 2024. Writing is on the wall. 2023 Recession is here. Will increase in 2024. The feds cannot stop a runaway freight train recession. Not much anyone can do really to stop it but prepare for the worst.
Are you the HQ guy? What are your sources for such information? The present reality is that it's not happening right now, so I'll worry about it when it happens. Just know that there isn't sh-t I can do to stop it from happening either. It's time for you to move on from the fear mongering tactic. Just a thought.