Rail has linked businesses and consumers to one another for centuries and still plays a critical role in the economic development of America. According to the International Energy Agency, the demand for freight activity is going to more than double by the year 2050. This growth means that supply chains all over the world will have a heavier reliance on rail to meet their needs. Currently, 7% of global freight is shipped by rail, however it only represents 2% of the total energy demand. Railroads also use 80% less energy than trucking per ton of freight carried.
Businesses are benefitting from the cost-effective nature of rail shipping, especially intermodal freight which allows a wide variety of consumer goods to be transported. Truck transportation is usually limited by cargo size and weight restrictions; however, those issues are relatively nonexistent in respect to rail transport. And while trucks carry most goods that are shipped less than 750 miles, rail is the most common form of shipping goods 750 to 2,000 miles. With today’s transportation costs being approximately 20% to 30% of the entire cost of goods sold, companies are better utilizing rail to solve their supply chain issues. Companies can save on fuel surcharges and oil price instabilities because most railroads are powered by electricity. In addition, railroads are extremely time-efficient because they are not negatively affected by highways, roads, or inclement weather.
America’s freight railroads are owned, built, and maintained by themselves and are consistently invested in. Due to this, rail is the most sustainable means of freight transportation and can provide non-stop utilization to power businesses and help manufacturers extend into new markets. These standards allow rail transport to save businesses and consumers billions of dollars by lowering energy consumption, CO2 emissions, & taxpayer maintenance costs.