Struggling to Obtain the Railcars You Need?
You’re not alone.
Chances are high that you have outstanding and open needs for railcars. Existing and used railcars are hard to come by and, unless you’ve already penned a contract to secure the railcars you need to meet your transportation needs, you may be coming up empty in sourcing railcars. Tealinc is here to help. From working with you to source the railcars you need and ensuring that when railcars become available, you’re the first to know, we also focus on educating you on historic, recent, and upcoming railcar supply and demand trends. Additionally, if you have railcars you’re looking to sell, we advise you to connect with us to discuss the sale of your railcars.
In our Fall 2023 newsletter, Julie Mink, President of Tealinc, elaborated on why we’re experiencing such a tight railcar supply and demand situation in North America. For your convenience, we have repost this content here for easy reading. To learn more, we invite you to read the Fall 2023 newsletter and encourage your feedback. You can also contact @Julie Mink to discuss your specific railcar supply and demand needs.
Railcar Supply and Demand: A Delicate Balance.
In the dynamic world of railcar leasing and sales, one critical factor continually shapes the industry landscape: the delicate balance between supply and demand. Over the past few years, the railcar industry has experienced shifts in demand patterns influenced by various factors. Economic fluctuations, changes in trade dynamics, interest rates, a steep price for scrap steel and aluminum, and transportation dynamics have all played a role in shaping rail shipper needs and preferences that adversely have affect the supply and the demand of railcars. The fluctuating global demand for certain commodities, raw materials, and finished goods continues to create opportunities and challenges.
Railcar Supply Constraints.
The railcar industry continues to grapple with railcar supply constraints that affect market dynamics. When steel and aluminum scrap pricing were at and near record highs, railcars were destroyed and cut thus eliminating a segment of the railcar sector and reducing the number of railcars shippers had at their fingertips. To replace those railcars and railcars naturally retired/scrapped due to age and attrition, railcar manufacturers got busy building new railcars. The challenges railcar manufacturers faced included capacity limitations and higher costs. Railcar purchasers, banks, and railcar owners and lessors have been met with excessively high costs accentuated by rising interest rates thus impacting the ability to keep pace with rapidly changing demands. Additionally, shippers have seen higher lease rates and longer lease term requirements. Exacerbating the situation, all players are tending to see extended lead times for railcar deliveries, parts, and attention to service which has caused disruptions for companies looking to expand their fleets or replace aging assets. It goes without saying, we’re an industry full of gritty employees who are used to challenges and creative enough to develop opportunities. We certainly must be nimble and adaptable to cater to these evolving situations.
Time Is On Our Side… But We’ve Got a Ways To Go.
Time tends to heal all wounds but, in the meantime, it’s important to remember we’re all in this together. We can do a few things to improve railcar utilization and thus positively impact the railcar supply and demand disparity. As a recommendation, we suggest that shippers and receivers embrace digital technologies and data-driven insights that optimize railcar utilization, improve maintenance practices, and enhance overall fleet management efficiency. Implementing real-time tracking and predictive and preventative maintenance programs can lead to more reliable operations and better customer service. For railcars we own and manage, call Shannon Rodgers directly to discuss your plans. Additionally, we recommend alliances and partnerships where collaboration with key stakeholders, such as rail operators, shippers, receives, railcar leasing companies, and manufacturers, can create synergies that improve the overall industry ecosystem. Strategic alliances can facilitate capacity planning, streamline logistics, and ensure a more balanced supply and demand equilibrium. Reach out to Darell Luther for specific and detailed planning and implementation strategies.
Stay Attuned to Changing Demand.
As the railcar industry evolves, the delicate dance between supply and demand continues to be a driving force behind market dynamics. By staying attuned to changing demand patterns, aligning financial goals, addressing supply constraints, and embracing innovation and collaboration, we can all help navigate the challenges effectively and position ourselves for sustained growth and success in this dynamic marketplace. Reach out to Yvonne Lufborough to align your financial goals.
Thank You, Industry Partners!
From all of us at Tealinc, we are thankful to the industry as a whole for the synergistic balance we have. From the railcar manufacturers, railcar owners and railcar lessors who sell railcars to Tealinc to the railroads, rail shippers, and rail receivers who work with us as our valued clients to the railcar inspectors, railcar shops, and many mobile repair units who answer our calls for service, thank you! We look forward to a bright future together with you well into the future! As your railcar needs continue to change, we’re focused on listening to your very specific requirements. When we can buy, lease, sell, or trade railcars with you as your rail partner, we’ll absolutely enjoy creating value with you. When you we don’t have exactly what you need, we will collaborate with you or even one of our competitors to make success happen for you. We promise to continue to be overjoyed to put the puzzle pieces together. And worst case, if we don’t have or can’t find exactly what you need, we’ll add your specific railcar need to our internal database and keep our eyes on finding solutions with you when opportunities become available.