(The Association of American Railroads issued the following on August 22.)
WASHINGTON — Service on the nation’s railroads is showing marked improvement over year-earlier levels, according to a recent survey of shippers by Bear Stearns.
“Our second-quarter survey results indicate that rail service levels improved on both a sequential and year-over-year basis,” the financial services company said in its quarterly research report.
It said that the survey results generally agreed with its own analysis of Class I metrics, which showed improvements year over year in both dwell time and velocity.
Shippers were also optimistic about rail services for the peak shipping season, with 72 percent expecting service levels to be stable or improved over the same period last year, according to the survey.
Bear Stearns added, “Unlike in past years when West Coast port congestion meaningfully slowed rail service during the peak demand season, we believe the railroads and the entire supply chain have done a better job of planning for the peak season.”
“These improvements are especially impressive considering the fact that railroads are moving more freight than ever before in their history,” said Association of American Railroads President and CEO Edward R. Hamberger. He noted that total volume is up 2.7 percent so far this year while intermodal — the industry’s most service-sensitive business segment — is up 6.4 percent from last year when previous records were set.
“Railroads have spent billions of dollars over the past few years — including a record $8.3 billion in capital improvements this year alone — in order to increase capacity and improve service,” Hamberger noted. “Railroads have also changed operating practices and entered into joint agreements that improve the flow of traffic across the rail network.”
He said that these actions “have left railroads in a good position to handle the upcoming peak shipping season efficiently and safely.”
Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode. This includes large volumes of consumer goods that are imported into the country from ports along the East, West and Gulf ports and move in rail intermodal service to inland markets. Railroads also move most of the coal which is used to generate more than half of the nation’s electricity. Other products and materials moving by trains include new automobiles, grain and other food products, lumber and chemicals.