What types of freight are subject to rail monopoly power?
Coal, agriculture, paper and paper products, logging and construction products, steel and other manufacturing supplies, chemicals, plastics and many other items that cannot be shipped by truck or, in some cases, cannot by law move on the nation’s highways. According to a recent study commissioned by the Surface Transportation Board, 44 percent of all tonnage shipped by freight rail is “captive” (routes served by only one rail carrier line). back to top Q: Isn’t there data showing that shipping rates have dropped over the last 20 years, not increased? A: The railroad industry statistics do not address “captive rail rates,” which indeed have increased significantly. A 2008 study commissioned by the Surface Transportation Board shows the percentage of traffic that is captive has increased since 2001and the percentage of captive traffic paying more than 300 percent of railroad’s direct costs has increased from 12 percent in 2001 to 17 percent in 2006. Moreover, the rail industry statistics
