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Shipping Scrap Metal by Rail
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Some observations: <br /> <br />1. I'm not trying to be facitious here, but it sounds like some of these scrap yards with the poor trackage are themselves engaged in deferred maintenance. It could be the same problem of low margins and inability to sufficiently recover their cost of capital as the railroads experience(d). <br /> <br />2. If and when China finally de-pegs it's currency and allows it to float freely, you will see a shift in the movement of scrap metal from gons going stateside to otherwise empty containers heading back to Asia. China will soon be the number one market for scrap metal, if it isn't already, and it is only the currency situation that is preventing more U.S. scrap metal from heading that direction. Assuming that the dollar will be devalued relative to China's currency if it is de-pegged, that will be a boon for scrap dealers. Of course, you will then have the problem of an overweighed container of scrap having a rod or something bust through the bottom of a container in a well car and causing a derailment. Anyway, it means the truckers will have to deal with the inherent danger of scrap yards instead of railroaders, as the container loaded with scrap metal will need to be drayed to the nearest rail terminal.
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