Another example of the commodity inflation fallout and the ensuing economic distortions. Does the US make rail cars any more, or is this one going to be another WalMartization situation: no real US benefit from the hyper-stimulation, the fire on the roof analogy.
Message 19509493
And what if there's a build of cars, and we bust. How can anybody plan business activities in thise witches brew environment?
Record Grain Crop Causes Railcar Shortage
Published: November 18, 2003
Bloomberg News
Grain suppliers like Cargill Inc. and railroads like Union Pacific Corporation face rising costs and shipment delays because of a railcar shortage caused by a record corn harvest and rising demand in Europe and Asia for wheat and soybeans.
The monthly lease rate for a 120-ton grain hopper railcar, capable of carrying 5,150 cubic feet of grain, is about $270 to $325, up from $200 a year ago, according to leasing companies like CIT Group and RailSolutions Inc., a railroad consulting company. Some shippers have had to wait almost three weeks for cars.
"We've leased up everything we could lease," the Union Pacific's chief executive, Richard Davidson, said in an interview with Bloomberg News.
Some farmers and exporters have had to stockpile crops to await railcars as demand for wheat, soybeans and corn has surged because drought reduced supplies from Europe and Australia.
"This happens every harvest, but it feels a bit more severe this year," said Frank Sims, a vice president at Cargill, the world's biggest agricultural company. |
