(BRK.A), (BRK.B)
Back in 2016, BNSF Railway had a shipping slump that saw it idling over a thousand locomotives,
Now, as shipping numbers continue to climb for the second year, the freight railroad is not only back on track, but the locomotives are back on the track.
At the nadir, BNSF had some 1,200 locomotives in storage. It was a highly visible sign of a lower shipping volumes for coal, petroleum, and metals.
In Gillette, Wyoming alone there were 150 locomotives and rail engines sitting idle.
Now, the 1,200 locomotives in storage has been halved to 600, as combined intermodal and carloads numbers are up a solid 4.87% in the aggregate from the same period in 2017.
Of particular note are higher grain shipments, which as of the week ending April 28, 2018, are up 7.78% over the same period last year.
Back in 2016, BNSF also furloughed roughly ten-percent of its workforce. Now, it is offering bonuses up to $25,000 for new hires.
Just another sign that this is shaping up to be a very good year for BNSF.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.