(The following story by Adam Ledlow appeared on the Canadian Transportation & Logistics website on March 26.)
OMAHA, Neb. — Union Pacific is forecasting a decline in industrial materials shipments in 2008 because of the slowing US economy, the Toronto Star reports.
The largest US railroad’s chief financial officer Robert Knight said lumber loads are down 25% this quarter and cement has fallen 10%. Knight said that auto shipments will also be lower.
The US’s second-largest railroad, Burlington Northern Santa Fe, agrees with UP reps, saying they have already seen a drop in shipments.
Burlington Northern’s CEO Matt Rose said railroads are passing on their higher shipping rates to customers, the Star reported.