Railroads risk market share by charging shippers excessive fees

The Surface Transportation Board (STB) held two days of hearings on accessorial and demurrage charges last week.

What’s the strategic game theory play here? The railroads that are utilizing precision scheduled railroading (PSR) seem focused on changing customer behavior through aggressive penalties. According to testimony before the STB, this is being done at the railcar level when the railcar is in the possession of a shipper.

Hypothetically, protecting secret cost allocations at the railcar level and micromanaging revenues from penalties isn’t strategic. It may even chase more rail customers away.

For entire story go to freightwaves.com

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