While a Department of Transportation (DOT) phase-out program requires that DOT-111 tank cars no longer be used to carry crude oil in the U.S., there hasn’t been a huge rush to scrap the old tank cars. It appears some in the rail industry may be making inquiries about pricing and biding their time until the moment is right for such activity. And some may be thinking about upgrading them to DOT-117s, given the strength in the crude oil market.
The focus on crude by rail -- again -- has disrupted the tank car market. The ripples are washing into the pressure car market.
The dynamics impacting the tank car market include:
• a surge in crude by rail shipments driven by soaring cr...