Tuesday, December 22, 2009

Rail Shipments Down with less Paper Demand

North American Rail freight volume of pulp and paper decreased and YTD carloads were down 20% through November. Last week, the Senate Commerce Committee passed comprehensive freight railroad reform legislation designed to increase competition and improve federal regulation of railroads. It is estimated that 30% of US paper, packaging and wood product manufacturing sites have access to only a single rail carrier. This monopoly status has led to high costs with poor customer service.

4 comments:

Anonymous said...

Mr. Vallely
You stated earlier you thought truck prices might increase for full truckload orders.
Any thoughts for rail pricing?

Anonymous said...

With so many plants running low inventories - I have to think trucking will continue to grow and Rail not as fast; regardless of price. Truckers can get product to plant so much faster.

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