The hunt for cheaper sources of fuel and the food shortage seems to be benefiting the railroads. U.S. rail companies recently posted another weekly carload gain because of more demand for coal, grain and metallic ore.
The week ending May 10, carloads were up 5% compared with the same period the previous year, reports Progressive Railroading. Metallic ores traffic rose 27.8%, grain carloads rose 18.2% and coal volume jumped 11.9%.
Year-to-date, IYT is up 18.2%.
For full disclosure, some of Tom Lydon’s clients own shares of IYT.