Re: Making the coal trains great again- Another coal train held up for pay didn't really happen..?
Date: 01-14-2020 - 08:50
Western low sulfur power coal has not suffered as much of a decline in usage as eastern higher sulfur coal production has, Hutch... So there is still some good coal train action in places like Wyoming. But, it is in a long term slow decline, too.
Of course, we have the rail news published right here on AP, every week, with the AAR year over year carload and TEU data for North American, year over year, for all to read. And coal, is by far the biggest factor in declining year over year RR carloadings. Which are continuing a long downward trend, due to much slower electricity demand growth (from efficiency and new technology), coal being replaced by much cheaper and 2/3rds less CO2 "cleaner" natural gas, and in places from Texas to Southern Oregon, with more and more wind and solar that have come on-line, making coal increasingly "inefficient" and "unprofitable" to use.
The TEU drops are more troubling, as they are from the effects of the trade war and weak consumer demand, due to slow wage and productivity growth in the US economy.
Politicians of all stripes promise lots of things...from those promising some you fools free steak and pussy, to those who promise some of you others free college and health care.... Free competitive markets don't make promises, they set prices, based on supply and demand, and consumers decide....