IHS Chemical Week

Services :: Transportation

Survey: High Rail Costs Force Some Shippers to Switch to Other Modes

9:55 AM MDT | March 16, 2009 | Esther D'Amico

Railroads lost business last year from chemical shippers and others due to large rail cost increases, according to a new survey of 170 shippers by energy and rail shipper advisory firm Escalation Consultants (Gaithersburg, MD). “The economy is not the only reason for the large drop in rail traffic,” says Escalation Consultants. “Companies overwhelmingly believe that railroads abuse their market power.” Shipper groups from several industries, including chemicals, sponsored the survey. Only 6% of survey respondents believe that railroads do...

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