Jim Blaze: EXTENDING my observations ...

Jim Blaze

EXTENDING my observations, I’d expect Commtrex members should prudently revise both this year’s remaining three-quarters of the year corporate business plans.

  • Expect a surge in cars seeking places to be stored.
  • Cars in technical storage by June/July might increase to mathematically about 28% or higher range.     
  • That approaches the great recession years of 2009.
  • There is a possibility that the cash-flush PSR rail carriers “might” drop their rates in an attempt to induce further traffic and thereby more directly compete for truck highway share.

 

That’s a hypothesis. Not a corporate stated fact.


While ocean vessels leaving China and other overseas ports are increasing their container goods movements towards the USA — thus increasing likelihood soon of more intermodal rail freight train moves into April — THE DANGER is that few supply chain orders are currently being placed to keep that flow increasing into ships that would normally arrive in May through July.

US buyers are preserving cash. Hunkered down in survival mode for right now. Their strategic plan might now be fear-driven. No markets like uncertainty.

I believe that rail freight can increase its relevance service role. Even during troubled times. That will take some changes in selling and pricing tactics.

FOR CUSTOMERS, what do you need to push for?
How might you adjust your strategic plan?
Because “it hasn’t survived initial contact with this new enemy.” 

Cheers!
Jim Blaze