Captive rail customers are shippers who must rely on a single railroad to deliver their products. These customers usually move bulk commodities such as coal, grain or lumber, or certain materials that, due to size or characteristics, cannot be moved on our nation's highways.
Historically, 20-30 percent of the nation’s rail movements have been “captive,” with many of these movements covering rural America. Today, in a capacity-constrained rail system, a majority of rail movements may lack competition.
With no competitive options, no antitrust protection, and a passive STB that is failing to provide effective oversight, freight rail customers face unrestrained shipping costs and unreliable service. The resulting cost increases are passed on to consumers who buy their products and use their services.
While the major railroad companies log record profits and stock prices on Wall Street, delays in coal deliveries have caused higher electricity prices on Main Street. Skyrocketing transportation costs are forcing chemical and paper companies to consider moving American jobs overseas. Already a handful of utilities are importing coal from Columbia and Indonesia in order to meet consumer demand because the railroads are not delivering adequate supplies of U.S. coal.
U.S. taxpayers helped build the rail routes and the companies who operate them. A reliable and reasonably priced freight rail system is critical to the American economy and infrastructure. While railroads are enjoying record profits, rail customers are paying more and getting less.
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