Book Description

Pricing policies are discussed as they relate to the supply and allocation of freight cars for the movement of agricultural products. Incentives guiding the allocation of empty cars--per diem, time-and-mileage car rentals, car service orders, and demurrage--have not always been adequate to ensure an equitable distribution of cars. The incentive per diem plan instituted in 1970 by the Interstate Commerce Commission is intended to increase freight car utilization by speeding up the return of general purpose boxcars during the grain harvest season when the shortage is most severe. Despite improved pricing policies, demand for freight cars will probably continue to exceed supply for several years. However, growing use of other modes of transportation for hauling agricultural products, improved railroad operations, and addition of more specialized equipment should reduce the demand for general purpose boxcars.