Odd Lots This Is What the Pandemic Did to the U.S. Rail System
Sep 27, 2021
Ian Jefferies, President and CEO of the Association of American Railroads, sheds light on the seismic shifts the U.S. rail system experienced during the pandemic. He discusses the ongoing challenges of congestion, labor shortages, and logistics disruptions impacting the supply chain. Jefferies dives into innovative strategies rail companies are adopting to optimize capacity and tackle extreme weather challenges. He also shares insights on the industry's resilience and its commitment to sustainability while navigating a complex global transportation landscape.
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Rail's Role in Supply Chain
- Rail plays a crucial role in moving goods across the US, handling various products like industrial goods, agricultural products, chemicals, and automobiles.
- Rail traffic flows through key gateways like Chicago, Memphis, and New Orleans, designed for efficient sorting and distribution.
Private Investment in Rail
- The US freight rail system is privately owned and invests $25 billion annually, making it efficient and advanced.
- Rail seeks infrastructure investment to leverage its environmental and safety advantages while enabling innovation and expansion.
Rail Capacity Allocation
- Rail companies prioritize moving the most traffic with emphasis on premium, just-in-time service.
- Factors like customer type and product urgency influence capacity allocation, with industrial products often moving slower than, say, UPS packages.