NEW YORK The CEO of Union Pacific said Friday that shipments carried by the nation's biggest railroad are stronger than expected this year, but are still a long way from full recovery, the Associated Press reports.
In an interview with The Associated Press, Union Pacific's Jim Young said some key segments, including agricultural, automotive and intermodal shipments show signs of strength. Railroads are indicators of the nation's broader economic health because many things consumers and businesses use every day are shipped by rail.
"I'm not willing to say the challenges are over, but some areas are pretty strong," Young said.
Young said automotive shipments are up 60 percent from a year ago, but far from their peak three years ago. Intermodal shipments, or transfers between trucks and trains, are up about 20 percent, he said. Intermodal shipments can be closely tied to consumer spending because many retail goods, like electronics, clothes and toys, are transported that way.
"It's too early to tell if the consumer has really got some sustained buying power," Young cautioned.
Shipments of industrial products - including cement, lumber, steel and newsprint - are up about 4 percent compared with last year. But Young said volume is only about half of what it was before the recession.
Union Pacific's total shipping volume is up about 11 percent compared with last year.
Young said the real sign of Union Pacific's confidence in the economy will appear when the railroad starts hiring again. But that's not happening yet. Some furloughed employees have been called back to work, but about 3,500 remain on leave.
(This item was distributed March 15, 2010, by the Associated Press.)
