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6/20/2013



Rail News: Rail Industry Trends

Rail revenue climbed in 2012, supply chain group says


The Council of Supply Chain Management Professionals (CSCMP) yesterday released its 24th annual "State of Logistics Report®," which shows that total U.S. business logistics costs rose to $1.33 trillion in 2012, a 3.4 percent increase compared with 2011.

Presented by Penske Logistics and authored by transportation consultant Rosalyn Wilson of R. Wilson Inc., the report has tracked and measured all costs associated with moving freight through the U.S. supply chain since 1988.

The 2012 report shows rail costs rose 4.9 percent in 2012, down from more than 16 percent in 2011, helping to boost rail revenue per ton-mile 5.3 percent to 3.96 cents.

In addition, capital spending on rail infrastructure and equipment climbed 16.1 percent to $13 billion and total carloads declined 3.1 percent in 2012, the report states.

"Competitive pressure from trucks in the intermodal market held rates down for the railroad industry," CSCMP and Penske Logistics officials said in a press release. "Intermodal volume was the second-highest on record, benefiting rail. The railroad industry has continued to remain strong, despite the recession, and this particular industry is poised to take business from struggling transportation sectors, including trucks and ocean carriers."



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