(Source: The Regulatory Review opinion column by Martha Moore, June 24, 2019)
WASHINGTON, D.C. — At a recent Congressional hearing, the Association of American Railroads (AAR) declared that rail rates after adjustment for inflation are 46 percent lower now than in 1981. If this is truly the case, why are so many rail customers voicing their concerns about the rising cost to ship by rail? The answer is simple. Although rates did decline dramatically after 1980, this trend has long since reversed. AAR’s data show that from 2000 to 2017, real rates jumped 30 percent. The positive news from decades ago has little to do with the current reality and provides little relief to farmers, manufacturers, and energy producers facing rising costs today.
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