|
Today’s U.S. freight railroads operate
in an extremely competitive marketplace. To compete
effectively against each other and against other
transportation modes, railroads must provide high-quality
service at the lowest possible price. Measured
in ton-miles (the movement of one ton of freight
one mile), railroads move 42% of intercity ton-miles,
more than any other transportation mode. The rail
share of intercity ton-miles has been trending
slightly upward over the past 15 years, after
falling steadily for decades (in part because
railroads’ rates are so low compared to
their competitors, their 42% of ton-mile traffic
generates less than 10% of intercity freight revenues).
Railroads’ share of intercity freight revenue
has been trending down for decades, a reflection
of the intensity of the competition for intercity
freight transportation in the U.S. and the significant
rate reductions railroads have passed through
to their customers.
Coal is the most important single commodity carried
by rail. In 2003, it accounted for 44% of tonnage
and 21% of revenue for Class I railroads. Coal
accounts for about 50% of all U.S. electricity
generation, far more than other fuel sources,
and railroads handle approximately two-thirds
of all U.S. coal shipments.
Other commodities carried by rail include:
- Chemicals, including massive amounts of industrial
chemicals, plastic resins, and fertilizers
- Grain and other agricultural products
- Non-metallic minerals such as phosphate rock,
sand, and crushed stone and gravel
- Food and food products
- Steel and other primary metal products
- Forest products, including lumber, paper, and
pulp
- Motor vehicles and motor vehicle parts
- Waste and scrap materials, including scrap iron
and scrap paper.
Over the past 10 years, intermodal traffic (the
movement of truck trailers or containers by rail
and at least one other mode of transportation,
usually trucks) has been the fastest growing rail
traffic segment. Intermodal combines the door-to-door
convenience of trucks with the long-haul economy
of railroads. Rail intermodal traffic has more
than tripled in just 20 years, rising from 3.1
million trailers and containers in 1980 to nearly
10 million units in 2003. Intermodal today accounts
for approximately 22% of rail revenue. Rail intermodal
transports a wide range of goods, from bicycles,
automotive parts, and lawn mowers to glassware,
greeting cards, bottled water, toys, and computers.
As manufacturing has become more global and supply
chains have become longer and more complex, intermodal
has come to play a critical role in making supply
chains far more efficient.
> Back to Rail/Intermodal
|
