Two new studies released by ACC show that U.S. chemical shippers pay billions of dollars in freight rate premiums each year, and that the lack of rail competition harms U.S. producers.
Escalation Consultants Examined Surface Transportation Board (STB) Data and Found:
In 2010 alone, U.S. chemical shippers paid a $3.9 billion premium on freight rail shipments.
Between 2005 and 2010, the percent of chemical shipments moving under higher rates increased dramatically.
A Survey of U.S. Chemical Shippers and Receivers Shows:
Most chemical shippers and receivers do not have access to competitive rail service. Nearly three-quarters of inbound and two-thirds of outbound rail transportation is captive to a single major railroad.
Many chemical shippers report that captivity and high rail rates have hindered their company from making domestic investments or meeting their customers’ demands.
ACC’s Policy Position
While a strong rail industry is vital to the U.S. economy, excessive rates can be a burden on U.S. manufacturing and provide a competitive advantage to foreign producers. ACC and its members support policies that would unleash market forces in the rail industry and help ensure an efficient flow of commerce. » Learn more about ACC rail policy
Strengthening Rail Competition—A Key to Economic Growth
The development of shale gas is a “game changer” that can rejuvenate America’s chemistry industry, strengthen U.S. manufacturing, boost exports, and create jobs. Ensuring a competitive freight rail system can help maximize this advantage for the U.S. economy.
» Learn more about shale gas