NEW YORK, June 12, 2018 (Wall Street Journal) -Railroads operate under a simple premise: share railcars and everyone wins. Pooled resources, even among competitors, mean more cars available to fill and fewer running empty along tracks.
That decades-old system buckled after CSX Corp. CSX 0.29% pulled hundreds of boxcars out of a nationwide pool about a year ago to improve its own operations. The move has put added strain on the shrinking fleet of boxcars in the U.S. and added costs and complexity for some large shippers, industry executives say.
At International Paper Co.’s IP 0.94% Savannah, Ga., plant, which produces rolls of containerboard used to make boxes, the paper giant spends extra time separating CSX boxcars from those of other companies that can still be shared. A mix-up can result in a $2,000 fee from CSX for each car sent on the wrong tracks. The problem occurs at other facilities that are served by two railroads.
RISI is not responsible for the reliability or availability of content on external websites.