Why Genesee & Wyoming’s North American Volumes Fell in August
North American shipments
Genesee & Wyoming (GWR) operates in the United States, Canada, the UK, parts of Europe, and parts of Australia. The company is the largest short-line operator in the US.
In August 2017, GWR posted a marginal fall of 1.6% in its North American shipments YoY (year-over-year). Genesee & Wyoming hauled 136,000-plus railcars in August 2017 compared with nearly 139,000 units in the corresponding period in 2016. Its shipments other than coal and coke fell 1.1%.
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In GWR’s North American operations, its carloads of coal (ANR) and coke fell on a YoY basis. In August 2017, it reported 21,000 carloads, down 4.3% from 22,000 in August 2016. Lower shipments in company’s Central and Midwest regions led the decline in coal volumes.
GWR’s North American carloads include volumes from the Providence and Worcester Railroad acquisition in late 2016 and the Heart of Georgia Railroad acquisition in mid-2017. On a same-railroad basis, GWR’s North American shipments fell 1.6%, which was due to weaker-than-expected agricultural products traffic.
Investors should pay particular attention to the same-railroad operations. GWR’s trend of lower YoY volumes could be a matter of concern.
Agricultural products (ADM) volumes fell 7.1%. Other commodities with lower volumes in August 2017 on a YoY basis were lumber, metallic ores, and petroleum products (UNG). On the other hand, commodities with higher volumes were autos and auto parts (TSLA), metals, minerals and stones, and waste.
In the final part of this weekly series, we’ll discuss GWR’s European freight traffic in August 2017.