Page 98 - RusRPTJul19

reduction in global supply. Overall, metals cargos rose 1% y/y in May.
Railcars. The gondola fleet, which increased by 2,609 cars in April, and has gained 9,591 YTD, now stands at 539,959 cars, up 7% y/y.
The oil tanker market saw write-offs of only 294 cars: the total fleet is currently 176,046 cars.
Prices on the gondolas and oil tanks market were flat m/m in May, remaining high.
Outlook. Although total cargo volumes started to decrease, we believe that turnover growth might hold throughout 2019, supporting freight operators’ revenues. However, we see coal weakness and the fluctuation in gondola leasing rates as a downside risk for the gondola market that has not yet been priced in by the investment community.
98 RUSSIA Country Report July 2019 www.intellinews.com