Re: loose cars
Author: J
Date: 10-13-2010 - 04:44
A couple of years ago intermodal traffic eclipsed coal to become the largest source of revenue. (Coal has since regained the title for the time being). Intermodal trains are more expensive to run (higher horsepower/ton, expensive terminals, etc.) but motor carriers have been challenged by higher fuel prices and significant driver turnover while shippers are willing to trade slightly slower service for lower rates. Large truck carriers such as JB Hunt, Schneider and UPS ship considerable traffic by rail and use their truck fleets for local handling.
Individual car railroading will continue for shipments that are not as time-sensitive and for products that cannot be shipped economically by truck. Examples of the former include lumber or bulk paper shipments and the latter include some long-distance perishables, chemicals and large, heavy flows such as coal or steel. So-called flexi-flow terminals are the modern equivalents of the old team track while less-than-carload business (remember REA Express) is now UPS.
Long term public policy (emissions, energy use, land use) favor freight rail. One hopes government policies don't forget that.