At STB, rail shippers reveal preference for trucks
More business will shift to highways if railroads can’t improve service and rates, customers tell regulators
More regulatory oversight is needed to keep rail volumes from shifting to trucks and limiting the railroads’ growth potential, rail customers have told the Surface Transportation Board.
“The deteriorating rail service members have experienced for decades makes it exceedingly difficult for shippers to do business with railroads as they are at risk of losing customers if they cannot provide them with reliable shipments,” said Richard Erstad, VP and general counsel for chemical manufacturer Hawkins Inc., in comments filed on behalf of the Alliance for Chemical Distribution. “This is even more impactful for small rail customers who can have their entire operation disrupted if just one car is severely delayed.”
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