Covered Hoppers and the Future of Rail Leasing with Bryan Vaughan

At the 2025 FTR Transportation Conference, Eric Starks sat down with Bryan Vaughan, Vice President of Sales, Marketing & Business Development at Modern Rail Capital (MRC), for a wide-ranging conversation about covered hopper markets, the shifting grain economy, and how MRC is positioning itself for growth.

Key Takeaways from the Discussion

• Covered hoppers reflect the commodities inside them. Rather than viewing the car type as a whole, Vaughan emphasized that each covered hopper’s outlook depends on the underlying commodity. Bright spots emerge when you break the market down.

• Fleet transitions are reshaping the market. Small cubes continue their wind-down, 4,000–5,100 cubic foot cars remain stable in fertilizer markets, and the aging 4,750 fleet is being replaced by new 5,100–5,400 cubic foot cars.

• Grain remains a critical driver. Year-over-year grain shipments are up, with record corn and soybean crops boosting supply. Demand—particularly from China—remains a question mark, but renewable diesel and ethanol tax credits are creating new opportunities.

• Innovation in car design. MRC has partnered with builders to develop a new 5,600–5,800 cubic foot prototype car optimized for oil and soybean meal, investing heavily despite being a smaller company.

• Growth through both new and secondary markets. MRC is targeting a doubling of size in five years, acquiring new builds while also bidding on portfolios in the secondary market that come with leases attached.

Why It Matters

Grain flows, commodity markets, and car type evolution aren’t just technical details—they’re a macro snapshot of the U.S. economy. Vaughan noted that FTR’s data and forecasts provide a critical check on strategy, helping companies like MRC navigate uncertainty around tariffs, demand shifts, and global trade.

As he put it: “We use the data constructively. It helps us rationalize if our heads are on straight.”

The Conference Experience

For Vaughan, the conference is both an information hub and a relationship builder. From tariff discussions to networking opportunities, it’s a chance to stay connected in a fast-moving industry. And for a Chicago-based team, the short drive makes it an easy decision.

👉 Watch the full conversation with Bryan Vaughan

Thanks for watching! We’ve really enjoyed these conversations with industry leaders and attendees throughout the conference. To catch all of the 10 Minute Takes podcasts from the event, visit www.ftrintel.com/connection.