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[quote]QUOTE: Originally posted by jeaton The above suggest another problem and I don't think this is implausable. Suppose an operating company is in a market where because of modal competion, margins are adequate, but very thin. Further, let's assume that there is no other business in that market or for good reasons, other operators have a lock on more profitable business. Now let us suppose that the infrastructure company has a valid need to raise their rates fully consistant with the regulations and approved by the regulators. The operating company finds that their low rates will no longer cover their costs and raising rates will loose the business. Oh, I guess that's just life in the competitive world. No problem. Right? Jay [/quote] A lot depends on the magnitude of the rate increase. Are you talking 50% or 100% increase, or 1 -5 % increase? Take a look at the fuel surcharges imposed by all modes these last few years. Has the fuel surcharge caused any loss of business for any of the modes? Probably not. Same would apply to nominal rate increases put up by an infrastructure company, if small enough it will be absorbed by the various players in the supply chain.
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