...We expect Union Pacific's (UP's) revenues to decline in 2020 on lower freight volumes. UP's, like other railroads', total carloads declined sharply as restrictions related to the coronavirus pandemic led to factory closures and reduced economic activity. Automotive volumes, in particular, declined steeply in the spring, with factory closures resulting in significantly fewer finished vehicles. Moreover, low natural gas prices have reduced demand for coal. Through the end of October, coal volumes declined approximately 23% from the prior year, continuing a 16% decline in 2019. Lower oil prices have also contributed to reduced demand for hydraulic fracturing (frac) sand, which had also already been declining since last year, when drilling companies shifted to using local sand supplies. Volumes started to recover in June, with certain carloads benefitting more than others. We expect automotive volumes to remain strong through the end of the year as factories reopen and light vehicle sales strengthen....
