We’ve seen that the storage market in the first half of 2021 remained very similar to what we experienced in the second half of 2020. Cars remained in storage in near-record numbers.
Now in the second half of 2021, as the economy is beginning to open back up and demand for goods is increasing, cars in many industries are being pulled out of storage and placed into circulation. In recent months, we’ve seen more and more industries rebounding, but Class I velocity is down, and dwell times are up from pre-Covid levels due to labor shortages. As a result, customers are pulling more cars out of storage in an attempt to keep up with demand. This influx of railcars is adding to the strain already imposed on the Class I rail network.
Looking into 2022, I’d say the markets outlooks remains very similar to what we are seeing today.
