Railcar lease rates expected to fall in autumn

摘要

Russian spot lease rates for open-top railcars decreased in June compared with May, in line with lower profitability for coal exports. Market participants expect a further decline in lease rates in autumn because of falling coal prices. The average open-top railcar lease rate in short-term agreements for coal transportation in Russia has fallen by Rbs25/d from May to Rbs1,950-2,200/d, excluding value- added tax (VAT), market participants say. Long-term rates also decreased by Rbs25/d this month, to Rbs1,750-1,900/d, excluding VAT.