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[quote]QUOTE: Originally posted by MichaelSol [quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by TerminalTower Well I could pass on the profits to my customers in reduced freight rates on certain lanes in the hopes that will atract more buisness. [/quote] That's a little too simplistic to actually work. You'd be much better off trying to bring new business, to add volume(and hopefully lower your costs to do business) or improve your service to existing customers, so you can charge them more for your service. [/quote] Actually, that's whats been happening since the Staggers Act, although it was surely no manifestation of altruism on the part of the railroads, but rather part of the Staggers Act they hadn't anticipated. The shippers got far lower rates, the railroads got huge amounts of low margin and no margin business, had to rebuild the very capacity they had earlier claimed they didn't need, and they still couldn't earn their cost of capital. The interesting thing about evaluating the Staggers Act is that if regulated rates had continued in effect, and the railroads had been able to actually benefit from the crew law changes, they would have been highly profitable businesses. Deregulation permitted/required them to hand their profits back to the shippers, even as they were able to cut costs dramatically. Nearly every nickel in savings/profits went to the shippers. Best regards, Michael Sol [/quote] Make that the biggest shippers. The smaller shippers seem to have been cut out of the loop altogether.
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