Why Rail/Intermodal Transportation Won't Replace Truck Driving

There has been a lot of talk lately, especially when diesel fuel prices top the $3 mark, that rail-based intermodal shipping will outpace truck driving as the favored mode of transportation in the future. Some have even speculated that rail shipping is the wave of the future.

In my opinion, that couldn’t be further from the truth. I believe trucking will continue to be the preferred mode of transportation for most logistics companies & shippers.

Shipping by rail, or train, has been touted as the “greener” way to ship due to the savings in fuel. It's also plugged as eco-friendly, for the supposedly reduced pollution trains cause. Trains can indeed carry a substantial amount of freight a long way and shipping by rail works in cities like Dallas or Chicago, where there are established railways. However, many cities no longer have railways that make frequent stops, and most small towns don’t even have train stops at all. The 90% of freight shippers who ship exclusively by truck don’t have the option to ship by rail. If they do ship by rail, they still have to use a truck to deliver the freight from the rail station to its final destination.

Railways are hard-pressed to compete with the flexibility of shipment by truck. Trucking companies work with distributors to ensure that the delivery is made at a convenient time for all involved. Trains are on a fixed schedule and simply don’t have the ability to make adjustments. When shipping by train, the freight must wait until someone comes along and picks it up, most likely in a truck.

While there aren’t many, there are occasional railway accidents. If a train derails or is otherwise delayed, the whole shipment is delayed; not just one container, but all of them. It’s possible that hundreds of containers cannot reach their destination on time because of a railway accident. Conversely, if a truck is stalled, has an accident, or a flat tire, only that truck and its shipment is delayed.

There was a time when the railways ruled shipping, a time before we had highways, freeways, and interstates. However, that time has passed and trucking has proved it is the winner in the transportation industry. Rail transportation simply can’t compete with the flexibility that trucking has to offer. Even the railway is dependent on trucks to ensure that the freight they are carrying makes it to its destination.

Do you think the railway industry still has a chance of taking over trucking in the future? If so, why?

Comments for Why Rail/Intermodal Transportation Won't Replace Truck Driving

blog comments powered by Disqus

Monday, December 14, 2009 by CM Evans:: Although I would agree rail will not take over completely; my opinion is that intermodal will gain significant market share in the coming years. CSA 2010 will have effects on driver availability as will other issues, and as the rates begin to rise shippers will shift they're focus to rail as much as possible. We saw this first hand a few years ago when fuel jumped to nearly five dollars, just like everyone else in the current environment the railroads too are prepapring for new opportunities.
Monday, January 25, 2010 by N Garcia:: If the argument is that flexibility prevents rails from replacing trucking, then there will certainly be advances in rails in the coming years. Both private and governmental investment have yielded significant planning for more railway hubs. While it is true that distribution from railway hubs will still require trucks to make subsequent deliveries, the impact on long-haul trucking will still be significant. Aside from the levels of investment and development into freight rails, the volatility of oil markets have been awfully rough on the trucking industry. Spikes in oil prices have led to the demise of entire trucking companies, fueling further appeal of a transportation system that is less susceptible to price fluctuations in oil.
Sunday, May 2, 2010 by rst:: i saw tv shows plugging trains as a greener option. but i dont believe that means much really...causing any serious effect on the earth or atmosphere. i was wondering from a future investment point of view if adding more rails would reduce shipping costs for many goods. such as having many businesses (ones that ship lots of goods) relocate to newly formed or rehabbed rail lines instead of as many long haul trucks. or has long haul trucking undergone advancements in reducing downtimes and cost reductions so as to reduce the need for more rail additions.