Burlington Northern Intermodal Drops 10%
Burlington Northern Santa Fe Corp., the second-largest U.S. railroad,
is seeing a drop in shipments as a declining U.S. dollar saps consumers' confidence and spending.
The weak currency raises the cost of imports and has contributed to record prices for oil, which is priced in dollars.
Railroads are passing on their higher shipping rates to customers.
CEO Matt Rose: "The impact will be people feeling uncertain about their jobs, the economy, foreclosures.
They are buying less of the stuff we transport intermodally, or in combination with trucks or ships."
According to the Association of American Railroads. Burlington Northern's intermodal shipments, primarily consumer products,
fell 10% in the first 10 weeks of 2008, That's second to the 21% plunge in the railroad's lumber and paper shipments.
Hattip to Bloomberg.
is seeing a drop in shipments as a declining U.S. dollar saps consumers' confidence and spending.
The weak currency raises the cost of imports and has contributed to record prices for oil, which is priced in dollars.
Railroads are passing on their higher shipping rates to customers.
CEO Matt Rose: "The impact will be people feeling uncertain about their jobs, the economy, foreclosures.
They are buying less of the stuff we transport intermodally, or in combination with trucks or ships."
According to the Association of American Railroads. Burlington Northern's intermodal shipments, primarily consumer products,
fell 10% in the first 10 weeks of 2008, That's second to the 21% plunge in the railroad's lumber and paper shipments.
Hattip to Bloomberg.
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