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Rails and their assumed strength - not so real.

|Includes: CSX Corporation (CSX)

I will let the data, where available, speak for me.

AAR Weekly Rail TrafficWASHINGTON, D.C. - July 8, 2010

Canadian railroads reported volume of 68,956 cars for the week, up 21.3 percent from last year, and 44,110 trailers or containers, up 22.2 percent from 2009. For the first 26 weeks of 2010, Canadian railroads reported cumulative volume of 1,880,555 carloads, up 21.4 percent from last year, and 1,184,555 trailers or containers, up 13.8 percent from last year.

 

Mexican railroads reported originated volume of 13,949 cars, up 21.9 percent from the same week last year, and 5,666 trailers or containers, up 21.3 percent. Cumulative volume on Mexican railroads for the first 26 weeks of 2010 was reported as 360,456 carloads, up 22.9 percent from last year; and 169,717 trailers or containers, up 37.2 percent.


AAR Weekly Rail Traffic WASHINGTON, D.C. – June 24, 2010

Canadian railroads reported volume of 73,788 cars for the week, up 22.3 percent from last year, and 49,749 trailers or containers, up 25.9 percent from 2009. For the first 24 weeks of 2010, Canadian railroads reported cumulative volume of 1,740,750 carloads, up 21.5 percent from last year, and 1,093,534 trailers or containers, up 13.2 percent from last year.

 

Mexican railroads reported originated volume of 15,410 cars, up 15.3 percent from the same week last year, and 7,157 trailers or containers, up 49.2 percent. Cumulative volume on Mexican railroads for the first 24 weeks of 2010 was reported as 329,045 carloads, up 22.4 percent from last year; and 155,918 trailers or containers, up 36.1 percent.

Translated this means a 9.3% decline in Candian railcars for these two weeks and an 11% decline in containers.  The numbers for Mexico are just as alarming.

www.aar.org/newsandevents/news.aspx



Disclosure: Disclosure: No position in stocks mentioned but now very short the market in general & there are better shorts out there.