Global freight traffic flows are recovering. U.S. and German manufacturers surveyed in late August reported a ‘jump’ in export orders, “Container traffic is approaching the level reached before the corona crisis”. In the U.S. seasonally adjusted imports (inbound TEU’s) are up significantly on the West Coast, and Domestic North American Intermodal container volumes have fully […]
Second Quarter year over year comparisons are down but sequential growth is evident in the third quarter. A timeline towards recovery is beginning to take shape. Manufacturing is expanding (but from a lower base). Factories across the U.S., Europe, and Asia increased production in July but were held back by weak global trade (export orders […]
The Global economy is projected to contract 4.9% in 2020, with World merchandise traffic falling 13 to 32% and a 50 to 60% decline in air passenger revenue miles. In response, more than two-thirds of governments across the world have scaled up fiscal support with budget measures now standing at 6% of GDP on average. […]
Liquidity buffers, loans, restructuring operations, cost savings. As the pandemic lingers it continues to depress economic activity. The drop in passenger traffic is driving air carriers to constantly adjust network flight schedules and evaluate equipment needs and workforce reductions. United is exploring the possibility of a fall workforce reduction and American is considering similar plans. […]
Aviation and rail equipment lease rates and equipment values are stressed as operators adjust equipment capacity to meet current levels of demand (and adjust to the Class One Roads implementation of Precision-scheduled railroading “PSR”). In the near term, lessees are focused on ensuring the sustainability of their business by attempting to defer new delivery commitments […]
As the U.S. economy began to reopen, investors looked past the pandemic and optimism drove financial markets to within 4.5% of their all-time high. Lockdowns eased and a stronger than expected jobs report (2.5 million new jobs added in May) indicated the U.S. economy was impatient to reopen. American and Delta reported progress in summer […]
Domestic economies are beginning to reopen as evidenced by the number of TSA airport security screening checks. They totaled 87,534 April 14th and by May 25th had tripled to 257,451. “We’re past the trough in terms of peak damage”. Much of the pickup reflects the states’ decisions to open parts of their economies. While global […]
With economies ‘locked down’ and travel restricted, the pandemic has disrupted U.S. industrial production and impacted derived domestic rail freight traffic negatively. The Federal Reserve reported manufacturing output fell by 13.7% in April, its largest monthly decline dating back to 1919. Record declines in spending and employment are creating State budget disasters. Furloughs caused by […]
The past aviation super cycle was driven by growing demand from Asia’s emerging middle class (China) as well as the expansion of no-frills carriers. With much of the world now subject to air travel restrictions more than two-thirds of the world’s passenger aircraft are parked. The reality is that most of these aircraft will be […]
As the coronavirus spread across the world, the recession we were unable to predict arrived.
RESIDCO’s size and wholesale capability is a competitive advantage. We respond quickly and creatively to ever-changing market conditions.
70 W Madison St, Suite 2200
Chicago IL 60602 – 4275
Growing Aero and Rail InvestmentsMarch 19, 2025 - 8:09 amBoeing delivered 45 jets in January[1]. That’s 19 more than Airbus’ January deliveries. COMAC and Embraer each delivered three aircraft in January 2025. Airbus plans to deliver 820 commercial aircraft in 2025, 7% more than in 2024 (Boeing delivered 348 in 2024). Boeing’s 737 deliveries remain capped at 38 aircraft per month. The newly appointed […]
2025 Core Themes for Aero and Rail InvestmentFebruary 5, 2025 - 9:27 pmStrong GDP growth, sticky inflation, and a soft landing–core themes for aero and rail investment. The economy’s performance in 2025 will drive the Fed’s future interest rate decisions. Higher ticket revenues and lower energy prices (jet fuel is expected to be less expensive in 2025) will benefit air carriers. The International Air Transport Association estimates the […]
Looking Forward to 2025 Aero and Rail InvestmentJanuary 7, 2025 - 7:37 pmNovember’s jobs report exceeded expectations (payrolls increased by 227,000[1]) yet the Fed lowered its benchmark interest rate December 18th by a quarter of a percentage point (to between 4.25% and 4.5%). Fed Chairman Powell’s recap: “I think we’re in a good place, but I think from here it’s a new phase and we’re going to […]