17 Apr 2014
An article at JOC.com was posted recently regarding the return of US rail traffic to normal after this cold winter.
The harsh winter has slowed down rail traffic. Coupled with the high demand for rail cars in the Dakotas from shale oil production, this has caused major bottlenecks at the gateways (cars waiting to switch), especially in places like Chicago. It will take months to get the system up and moving at its regular pace.
The bottom line — when there are less cars for hire (supply), costs increase. The higher the cost, the bigger the potential mistakes. More importantly, anytime there are problems with fluidity of rail traffic, mistakes are made. Shippers are forced to reroute shipments along different lanes for which — from a rate perspective — they are not prepared, causing them to be billed or to pay too much.
American Truck & Rail has the knowledge to understand these irregularities and make sure the shipper does not pay too much.