David Hannon, News and Transportation Editor -- Purchasing, 9/16/2004 2:00:00 AM
The rail industry is facing what could be its biggest test in recent memory. With volumes climbing, capacity is dwindling and shippers report service levels suffering. According to the Intermodal Association of North America, U.S. railway container volumes were up 9.1% for the first half of 2004 and carload volumes were up 3.7%.
The peak season this fall looks to produce even higher volumes and transportation analyst Anthony Hatch says shippers can expect some delays and prioritizing of what business carriers take, based perhaps on the margins during peak season.
With that kind of demand, rail carriers including Burlington Northern Santa Fe and Union Pacific have instituted peak season surcharges for shipments originating on the West Coast. BNSF and UP's surcharges are structured similarly, ranging from $45 to $170, depending on origin and destination.
At press time, the American Association of Railroads was gearing up for its conference where Class I railroads were expected to outline their plans for handling the peak season crunch. For updates, check Purchasing's logistics channel page at www.purchasing.com/logistics.
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