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Why might macroeconomic data on the volume of trucking shipments diverge greatly from that of rail shipments?

Economics Dec 15, 2020

Why might macroeconomic data on the volume of trucking shipments diverge greatly from that of rail shipments?

Expert Solution

Some of the various reasons that have promoted the use of the railway include cost-effectiveness. There are statistical reports that transporters can save 10-40% through the use of rail due to reduced costs compared to road transport as well as the high volume of goods transported per turn. The use of trains is environmentally friendly due to reduced pollution through greenhouse gases emissions which is a prevalent factor in road transport.

Trains can carry high volumes of products with an estimate of amount carried by 280 trucks hence very beneficial to shipper carrying large cargo. Railways are also very reliable due to their standardized transportation schedules, unlike vehicles which are public means. They are also not affected by traffic jams which are evident in road trucks. Weather conditions such as flooding can hinder truck transportation which is rare in rail. Breakage of products on transit is lower through the use of railways due to minimizes handling, unlike in road transportation.

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