Contact: Tom White
(202) 639-2556
FOR IMMEDIATE RELEASE
Shippers Say Rail Service Improving
WASHINGTON, August 22, 2006 – 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 railr