Volume 91 Issue 5 | p. 20 | Concentrates
Issue Date: February 4, 2013

Report Finds Lack Of Rail Competition

Department: Government & Policy
Keywords: freight railroads, captive shippers, competition

Rising rail freight rates driven by a lack of access to competitive rail service are hurting the chemical industry’s ability to meet the needs of its customers, according to a study commissioned by the American Chemistry Council (ACC), a trade group. About 70% of U.S. chemical facilities are “captive”—meaning they are served by a single railroad—and have to pay the carrier’s rate, according to a survey of 82 chemical shippers conducted . . .

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