FTR Associates, Nashville IN, has sharply reduced its expectations for railcar orders in 2009, in response to the fast-deteriorating condition of the general economy. “Without freight to haul, demand for transportation equipment has already begun to wane," said Eric Starks, FTR president. "We are forecasting a severe downturn in 2009.”
The transportation and equipment forecasting firm released an interim revised rail equipment forecast for 2009 as a supplement to their North American Railroad Equipment and Deliveries Outlook. The expected fall-off in freight over the next year will push the equipment market into a further decline. Third quarter orders in 2008 came in at an annual rate of 30,800 units and orders are expected to fall further over the next several quarters.
FTR expects deliveries for 2009 not to exceed 29,000 units.