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Re: Increased use of railroad shipping due to the high fuel cost crisis???
Author: Stevo del Applegato
Date: 04-03-2008 - 22:35
Consider that the current rise in fuel prices is being accompanied by a steep decline in home construction and sales, as well as a decline in the sales of durable goods. As a result, many shippers may be more inclined to move products by rail, but currently have less to ship.
Container traffic tends to generate minimal profits on a per unit basis, so any way to cut costs will be examined.
Some outfits will beat their chests and declare that they're moving the freight with fewer delays. Easy to do and say when carloadings are down. Fewer trains in the way...
As for reactivating old lines, remember, todays big railroads are run by lawyers and accountants, not railroaders. This is all about maximizing profits and earnings per share. Providing reliable, timely service to those pesky customers is just another cost of doing business.
sda
"We're all Bozos on this bus"
Container traffic tends to generate minimal profits on a per unit basis, so any way to cut costs will be examined.
Some outfits will beat their chests and declare that they're moving the freight with fewer delays. Easy to do and say when carloadings are down. Fewer trains in the way...
As for reactivating old lines, remember, todays big railroads are run by lawyers and accountants, not railroaders. This is all about maximizing profits and earnings per share. Providing reliable, timely service to those pesky customers is just another cost of doing business.
sda
"We're all Bozos on this bus"
