“Leaders in the railroad market pointed to mixed conditions across the railroad and intermodal network,” according to TD Cowen’s latest Railroad Happy Hour report. “Improved operations are aiding service offerings for merchandise
Our Fourth-Quarter 2023 Rail and Rail Equipment Surveys generated a positive read-through for the rail group, albeit with a mild negative for railcar manufacturing. 4Q23 Rail Survey Expected rate increases were +3.4%,
Railcar demand showed some resilience against a tough macro backdrop, although we view the results of our third-quarter 2023 Rail Equipment Survey as a slight incremental negative for manufacturing and possibly a slight positive for leasing. Our third-quarter 2023 Rail Survey showed that expected rate increases were +3.2%, declining sequentially and sitting below the survey’s long-term average. Business growth expectations remain unchanged, and economic confidence worsened.
