CSX service issues pose ‘unique risk’ in Q3 for producers: analyst

摘要

CSX railroad’s “reduced rail reliability andtimeliness poses a unique risk” to coal producers’ third-quarter resultseven as the demand for metallurgical coal has resulted in strongprices, one analyst said.Lucas Pipes of FBR & Co. said in a Monday update that Arch Coal isthe most exposed to adverse rail conditions in the third quarterbecause it ships 100% of its metallurgical coal volumes via CSX. Anexecutive said in Arch’s second-quarter earnings call that the problemsstarted at the end of the second quarter and worsened in late July,causing a delay in the shipment of about 300,000 st.