Logistics Mac

Railway Transport: Pullback Fears May Be Over

Rails have a ever growing moat over highway transport due to the run up in fuel. Combined with the green initiatives of most European companies which always moves to our shores, the advantage of rail vs highway in certain lanes has companies exploring options they scoffed at when fuel was lower. I recently calculated saving over 800 tons of CO 2 for a large shipper utilizing intermodal vs his long standing use of trucks. IM service is within 48 hours of truck service and averages 20% less in costs. Inventory adjustments are not accounted for yet, but the point is well served..rails will gain vs highway for long haul business.