Rail options still on hold
Despite recent actions taken by the National Industrial Transportation League (NITL) to address an onerous situation, “captive shippers” will continue to pay a monopoly tax on their rail shipments
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Despite recent actions taken by the National Industrial Transportation League (NITL) to address an onerous situation, “captive shippers” will continue to pay a monopoly tax on their rail shipments.
NITL President Bruce Carlton has rightfully objected to foot-dragging done by the U.S. Surface Transportation Board (STB) when it comes to addressing the issue of making competitive switching rules between the Class 1 railroads.
Late last week, the STB announced its decision to defer consideration of the League’s Petition for Rulemaking to Adopt Revised Competitive Switching Rules, until the Board completes its review of the lengthy record developed in the separate and broader Ex Parte 705 proceeding on rail competition.
Manufacturers who may have planned to add to their workforces or invest in other assets now have less incentive to do so, since they remain uncertain about the regulatory climate for some time to come.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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Transportation of freight in containers was first recorded around 1780 to move coal along England’s Bridgewater Canal. However, "modern" intermodal rail service by a major U.S. railroad only dates back to 1936. Malcom McLean’s Sea-Land Service significantly advanced intermodalism, showing how freight could be loaded into a “container” and moved by two or more modes economically and conveniently. As with all new technologies, there were problems that slowed the growth, which influenced many potential customers to shy away from moving intermodal.
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