Watch for this….
The naysayers are going to claim “the rate of increase is declining” and claim this means the recovery is stalling. I we back to 2005 to illustrate why this is wrong. The has historically always been a decline of the “baseline” number as we go from Q2 to Q3.
Intermodal and commodity shipments continue their upward surge and this “bottoms up” reading tells us demand is continuing to grow. Add to this earnings revision upward today from CAT and UPS, and the “double dip” scenario is becoming more remote (as we have been saying since January?).
Total US Rail Traffic:
