The U.S. Railroads and COVID-19: Keeping Supply Chains Moving
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The U.S. Railroads and COVID-19: Keeping Supply Chains Moving

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  • Creators:
  • Corporate Creators:
    Northwestern University (Evanston, Ill.)
  • Corporate Contributors:
    Northwestern University (Evanston, Ill.). Transportation Center
  • Subject/TRT Terms:
  • Resource Type:
    Tech Report
  • Geographical Coverage:
    United States
  • Corporate Publisher:
    Northwestern University Transportation Center
  • Abstract:
    This report addresses the impacts of the COVID-19 pandemic on U.S. rail freight service and the prospects for rail as the pandemic recedes, considering likely changes in domestic and global supply chain patterns and emerging developments in e-commerce and the supply chains that support it. It provides data-supported insights into the critical role rail freight plays in the nation’s essential supply chains in the face of the pandemic-induced disruption and post-pandemic economic rebound, looking ahead to the next 2 to 5 years. A key aspect of this role is the contribution of rail to the success of e-commerce, supporting on-demand delivery in the context of competition from other modes, especially trucking and air freight. The findings of this study can help position the rail industry to support emerging trends in sourcing, manufacturing, and consumer purchasing. The main questions addressed in this report are these: How did the rail industry fare during previous economic downturns and corresponding recoveries? How did the COVID-19 pandemic impact the rail industry, particularly in terms of trade and shipping patterns, as well as changing markets for energy commodities? How have key industry leaders viewed the impacts of COVID-19, the rebound, the functioning of the logistics system, and particularly the role and performance of rail freight? What are the main opportunities that appeal to the unique strengths of rail service in the post-pandemic period? How can public policy impact the rail freight sector and its competitive position, both positively and negatively, in the post-pandemic period? The approach to this effort comprised four components: (1) monitoring contemporary trade and academic literature on the pandemic, freight and logistics, international trade, and consumptions patterns; (2) graphical and statistical analysis of flows, performance, and pricing of rail and truck shipments for both the 2008 Great Recession and COVID-19; (3) short-term time series forecasting of rail shipments and economic parameters; and (4) in-depth interviews with leaders in the railroad, trucking, and consumer sales sectors.
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