Shippers Still Unhappy with Service
United Parcel Service, whose spokesmen have repeatedly stated the company’s desire to resume normal use of Norfolk Southern and CSX, continued last week to divert up to 40% of its intermodal traffic to trucks. The Atlanta-based package carriers spends about $600 million a year to move freight by rail.
Ed Rastatter, director of policy for the National Industrial Transport League, a group representing shippers, expressed concern about forecasts that traffic on the two railroads is likely to increase by 3.5% in September and as much as 9.5% in the two succeeding months.
Mike Heimowitz, a spokesman for the Chemical Manufacturers Association, reported that members are still experiencing service problems, saying “they see no light at the end of the tunnel.” He said transit times are still longer than before the June 1 breakup, and many chemical shippers continue to turn to truck transportation “when they can get it.”
An agency spokesman said the recent reports reflect a “status quo,” with improvements coming in some areas from week to week. He said though the situation is still troubling, the agency does not plan any additional action.
