Railcar manufacturer FreightCar America estimates there were 16,500 coal cars in storage at the end of 2013, the lowest level since early 2012, the company said Wednesday.
Reporting its quarterly earnings, the Chicago-based company said the 21.4% drop in coal car storage -- from 21,000 at the end of third-quarter 2012 -- was likely due to the impact of severe weather, which increased coal burn at coal-fired plants.
Despite the quarterly drop in coal car storage, the coal market continues to show mixed results, said Ted Baun, the company's senior vice president of sales and marketing.
Baun said that while utility stockpiles decreased to 153 million st at the end of 2013, down 17% from 2012, total US coal production and exports in 2013 were down compared with 2012, and electricity demand where coal competes as a generating fuel was flat compared with 2012.
Company President Joe McNeely said that due to a difficult market environment for coal, demand for new, Western-style coal cars will be soft for some time. However, continued efforts by the Eastern railroads to rebuild their coal car fleets is a bullish trend for the company, he said.
The company reported Wednesday a backlog of nearly 3,700 coal car rebuild orders at the end of Q4 2013.
