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2. Rail transport can be cost-effective. Shippers who convert long-haul freight from road to rail, can save 10-40%. Rail has lower fuel costs compared to road transport, especially when shipping a high volume of freight. Rail also has fewer costs associated with drivers and typically has better costs for drop trailer programs.
Shipping via train is more environmentally friendly. Trains burn less fuel per ton-mile than trucks. According to the Association of American Railroads (AAR), freight railroads can move one ton of freight an average of 479 miles on a single gallon of fuel. On top of that, using rail transport over road transport can lower greenhouse gas emissions by 75%.
Trains are capable of hauling large loads. Trains can handle high volumes of freight. In fact, one double-stacked train can hold approximately the same amount as 280 trucks. This can be very beneficial for shippers with large loads.
Railways are reliable. Railways have standardized transit schedules and don’t share their tracks with the public as trucks do with the road. For that reason, trains aren’t hindered by traffic and weather in the same way trucks are.
Rail freight can be efficient. For many types of loads, the average transit time is comparable to that of road transport. While rail shouldn’t be used for time-sensitive shipments, it can provide very similar transit times for longer hauls.
Rail options provide you with access to capacity. OTR capacity is tight. The driver shortage, HOS restrictions, and current market demand can make it hard for shippers to find a truck when they need it without paying an arm and a leg. Since rail transport can be more efficient and doesn’t have the same kind of limitations, this is a great way for shippers to find capacity.
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