The lower cost of fuel for natural gas-powered highway tractors compared to their diesel-fired brethren could make it more profitable for trucking companies to engage in longer lengths of haul for intermodal shipments.
Matt Harding, principal in the Freight Market Intelligence Consortium of Chainalytics, offers a snapshot of the current transportation environment, looking at rates, regulation and other major factors.
When TransCanada first proposed the Keystone XL pipeline in 2008, the company hoped it would be done by 2012 and begin carrying heavy crude from the Alberta oil sands in Western Canada down to the U.S. Gulf Coast. Six years later the pipeline remains in limbo, stymied by Department of State reviews, route adjustments, lawsuits, environmental and economic studies, and (most important) an Obama administration that appears truly divided on the issue. Last month the State Department announced that no decision would come until after November's midterm elections.
The benefits of rail freight are being highlighted in an industry report, which claims that businesses are saving $4.5m (£2.7m) a day by using trains to transport their goods.
Wayne Zorn, vice president of customer solutions with Solvoyo, lays out the tradeoffs that sellers must make between satisfying customer demands and calculating cost to serve.
America's trucking companies and railroads quite literally are the lifeblood of this economy; connecting farms to the dinner table, warehouses to stores and American businesses to consumers at home and across the globe. Without the hard work of millions of drivers, train crews and employees all across our industries, this economy would simply stop.