Wednesday, May 7, 2025

Latest

Increase in Rail Shipments Suggests Canadian Economy Beginning to Rebound

Much of Canada’s economy came to a stand-still as the coronavirus pandemic brought about lockdowns, mandatory social distancing measures, and temporary shutdowns of non-essential production. As a result, the Canadian National Railway Co. saw a significant reduction in rail volume during the pandemic’s peak. In response to the demand decrease, CN had no choice but to lay off over 4,000 employees and place 20,000 of its rail cars and 710 of its locomotives into storage.

Now with the Canadian economy slowly moving towards a recovery, CN rail is beginning to see a rebound in shipments. At the end of May, volumes increased by 4% as a result of construction and manufacturing industries re-opening. Automotive shipments increased by 60% compared to the week before, meanwhile shipments of lumber rose by 20%. Although a slow start, CN has a bullish outlook on the coal and grain shipments as the economy begins to open up even more. However, frack-sand and crude shipments are most likely going to remain volatile given the corresponding low prices.

Nonetheless, CN Rail is taking a slow and cautious approach towards pre-pandemic utilization of its inputs. Although volumes are projected to be better in June compared to May, they are still far from last year’s levels. As such, the railway will gradually begin putting its locomotives and crews on the track.

Source: CN Rail’s Key Weekly Metrics

Information for this briefing was found via Bloomberg, Trading Economics, and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

US Fed Is Running Into Significant Hurdles With Main Street Lending Program

The Federal Reserve had previously announced it will be providing loans for middle-sized businesses via...

Wednesday, May 20, 2020, 12:47:57 PM

Market Movers: Canadian Small Cap COVID-19 Stocks Take A Beating

COVID-19 related stocks are all the rage this morning, however it appears to be for...

Monday, November 9, 2020, 10:56:07 AM

Record Day for the Dow, Surges 11.4% as $2 Trillion Dollar Stimulus Package Looms

The markets rejoiced today as the Dow Jones Industrial Average increased nearly 11.4%, the most...

Tuesday, March 24, 2020, 06:08:19 PM

Revive Files Clinical Trial Application With Health Canada, Releases Phase 3 FDA Study Design For Potential Treatment Of COVID-19

Revive Therapeutics (CSE: RVV) continues to advance its clinical trial efforts. The company announced this...

Wednesday, June 3, 2020, 11:30:38 AM

Mnuchin: Fed to Make $4 Trillion Dollars of Loans Available to Small Businesses, Plus $3k Cheque to Families

Sweet Jesus! This morning US Treasury Secretary Steven Mnuchin was on Fox Business and said...

Sunday, March 22, 2020, 11:41:32 AM