Why do some people feel that with the cwb's less marketing power, the rail freight costs will go up. Why do they feel this may happen? Why will freight costs change with an open market? Please explain this to me!!
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As stronger commercial transportation agreements are negotiated... the larger grain handlers will be in better positions to bargin... just like potash.
Individual Producer Cars cost more to handle for the rail carriers... these folks should expect to pay more.
Short lines who assemble the cars and provide made up strings of grain cars... are also providing a service to the rail carriers... I will be surprised if they can't continue being effective transportation providers at reasonable competitive rates.
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This whole argument is bunk. First of all the grain companies benefit from large spot discounts, your CWB discounts are based on sigle car rates. Secondly back in November I ordered 3 producer cars a week later they 2 were there on time the last one was a day late, Cargill down the road waited nearly a month for cars.
The sky is not falling!
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