There Is No Shortage of Freight Cars--Railroads Must Make Better Use of What They Have

摘要

Railroads cannot satisfy the demand for freight cars because they do not use the existing car fleet efficiently. Enough cars are available, but they are not in the right place at the right time. Federal agencies can do little to substantially improve utilization. Federally financed research does point the way to improve car utilization techniques, but only railroad managers can make the operating improvements which will largely eliminate the illusive freight car shortage. To supplement improved utilization, railroads could use greater pricing freedom to defer peak demand for cars. The recently approved rail deregulation act permits greater pricing freedom but it is too early to evaluate this legislation's effects.