(The following appeared on the Toronto Star website on March 20.)
TORONTO — Union Pacific Corp., the largest U.S. railroad, expects shipments of industrial materials to decline this year because of the slowing U.S. economy.
That’s a sentiment echoed by Burlington Northern Santa Fe Corp., the second-largest U.S. railroad, which is already seeing a drop in shipments as a declining U.S. dollar saps consumers’ confidence and spending.
Union Pacific’s chief financial officer Robert Knight said lumber loads are down 25 per cent this quarter and cement has fallen 10 per cent. Auto shipments will also be lower. The Omaha, Neb.-based company is “still comfortable” with its estimate for first-quarter earnings, Knight said.
Burlington Northern’s CEO Matt Rose said railroads are passing on their higher shipping rates to customers and “the impact will be people feeling uncertain about their jobs, the economy, foreclosures.”