Pulling Up a Seat to America’s Kitchen Table

RAILCARS IN THE GRAIN MARKET

The U.S. produces nearly 600 million tons of grain every year, 25% of which is transported by railroad.

Because grain is a commodity of medium density and weight, it is typically shipped in covered hoppers ranging in size from 4,700 to 5,400 cubic feet. Historically, the grain market has relied on 4,750 cu ft covered hoppers to move the majority of its grain. Improvements in railcar design have led to expanding usage of larger 5,200 – 5,400 cu ft cars.

Grain shippers prefer the larger capacity cars, because they are able to move more grain per car, saving time and money. This change in capacity preference has led to a divergence in the age profile of the North American grain car fleet. The average age of the smaller capacity 4,700 and 4,750 cu ft cars has increased, while investment has been made to expand the larger 5,200 cu ft fleet, keeping the age profile more in line with the rest of the covered hopper sizes.

AITX understands this dynamic and has a strong commitment to providing the ideal cars for our customers. That is why we work to help transition customers’ older existing 4,700s and 4,750s out of their supply chains and replace them with the larger more efficient 5,200s. By targeting the most desirable car sizes when deploying capital, AITX continues to bolster our offerings as we seek to maintain our status as a leading railcar lessor for grain shippers.