MANAGING FREIGHT CARS IN A PERIOD OF SURPLUS: DOES UTILIZATION MATTER?

As 1980's recession cut into railroad traffic, freight car surpluses grew. The author examines the effects, primarily the higher ratio of empty to total car miles, and suggests that some of the traditional operating strategies at such times are unproductive--both for the individual railroad and for the industry as a whole. Examined are options such as the decision to load foreign in preference to system cars; which and how many cars should be stored; how should train service be reduced; how can revenue be generated from surplus cars; and how can the burdens of car surplus be shared with customers and other railroads. The author recommends that efforts must continue to improve freight car productivity.