Pros & Cons of Rail: Shipping Cost, Speed, Capacity and More (2024)

Explore the advantages and disadvantages of rail shipping, one of the most cost-effective and environmentally responsible transportation modes

Welcome to Part II of our transportation mode comparison series where we take a deep dive into the benefits of shipping by rail and the challenges of rail shipping, too.

Companies have a lot of options for freight shipping, which is why we're breaking down the most popular modes of transportation bycost, speed, capacity, reliability and environmental impact. Don't miss the other pieces in the series ontruck, ship/barge and plane.

Shipping by Rail

From household goods and food products to automobiles and building materials, you name it. It probably shipped by rail at some point. Trains play a major role in connecting markets from coast to coast, shipping the goods that keep America moving. Rail is one of the most efficient and cost effective transportation modes, especially when it comes to shipping very large volumes over long distances. Is it right for you?

RAIL SHIPPING PROS:

  • Cost-effective shipping
  • Comparable speed to truck shipping
  • Ability to transport large volumes of freight at one time
  • Reliable transit times and schedules
  • Environmentally responsible and fuel efficient

RAIL SHIPPING CONS:

  • If you don't have railroad tracks at your facility, coordination with trucks for first- and last-mile shipping may be needed
  • Limited reach in some instances
  • Very small shipments often do not yield tremendous cost savings

Cost
Rail shipping is considered one of the most cost-effective modes of transportation, especially for large volumes traveling long distances. Due to its ability to move major quantities of freight at one time, rail shipping has a lower cost-per-ton-mile (the cost of moving one ton of freight one mile) than truck shipping. In fact, a train requires less energy to move from Point A to Point B and can carry the freight equivalent of 300 trucks.

When you think about basic physics, the amount of energy needed to move a truck or train is related to the amount of rolling and air friction. A turning steel wheel in contact with steel rail produces a significantly smaller amount of rolling friction than a rolling rubber truck tire in contact with asphalt or pavement. There is less air friction on trains, too, because rail cars are connected and all cars ride together in the draft of a single locomotive. Each truck traveling over the road must independently fight air friction, which, in turn, expends more energy and uses up more fuel.

Speed
While you might think trucks travel much faster than trains, transit times for rail and over-the-road trucking can be comparable. Plus, trains are less susceptible to traffic congestion and road construction delays and have the ability to move shipments over long distances quickly and efficiently.

Capacity
Unlike trucks and planes, rail shipping offers huge carrying capacities that can adjust as your business grows or shipping needs change. Rail can also accommodate shipments of many shapes and sizes, from grain to wind turbine blades.

Reach
You may be surprised to learn that railroad tracks span nearly 140,000 miles across the U.S., reaching all major markets from coast to coast. Even if you don't have railroad tracks at your door, most railroads can help coordinate a door-to-door shipping solution through intermodal transport or transloading.

Shipment Visibility
Typically, most train locomotives are tracked via GPS, and the majority of railroads offer shipment management solutions that help you trace your shipments in real time. All rail cars have Automatic Equipment ID tags, and tag readers are positioned throughout the United States to offer a high level of shipment visibility.

Reliability
Weather delays can have an impact on rail shipments. Today’s railroads are focused on reliable transit times and schedules — and rail shipments can be expected to arrive within a pre-determined timeframe.

Environmental Impact
Shipping by rail is by far one of the most environmentally responsible transportation modes. On average, railroads move one ton of freight nearly 500 miles per gallon of fuel, and trains are four times more fuel efficient than trucks. Plus, U.S. Environmental Protection Agency data show freight railroads account for only 0.5% of total U.S. greenhouse gas emissions and only 1.9% of the transportation-related sources.

Questions about shipping your freight? Complete this short form and a shipping expert will be in touch.


Related Articles:

  • Pros and Cons of TruckShipping
  • Pros and Cons of Shipping by Air
  • Pros and Cons of Shipping by Water
  • Transportation Mode Pros and Cons: A Comprehensive Look

VIDEO: Rail Shipping Pros and Cons

Pros & Cons of Rail: Shipping Cost, Speed, Capacity and More (2024)

FAQs

What are the pros and cons of rail transport? ›

As a result, although rail transport has advantages such as high carrying capacity, economy, reliability and environmental impact, it also has some disadvantages such as limited flexibility, operating costs, necessity of intermodal connections and delivery time.

What were some pros and cons of the railroads? ›

List the positive and negative effects of railroads on the nation's economy. (+) allowing a huge communication network, the railroads also brought the dreams of available land, adventure. (-)caused harsh lives for the railroad workers, accidents, and diseases disabled and killed thousands of men each year.

Is it cheaper to ship by rail or truck? ›

Rail shipping is much more cost-effective than truck shipping for several reasons. Rail is a much more fuel-efficient mode of transportation. Railcars can also carry much more volume than trucks.

What are the disadvantages of rail? ›

Disadvantages of rail transport

It is not a cost-effective option for smaller loads and short distances. There is only limited service in rural areas especially in hilly regions of the country.

What are the problems with rail transport? ›

The sector's persistent challenges include inflation, rising ticket costs, ongoing strikes, service disruptions, and delays. Operators are leveraging innovations in digital systems, mobile connectivity, and station developments to boost passenger comfort and convenience and encourage them to return to rail.

What are 3 negative effects of the railroads? ›

Main Railway Disturbances: Noise and Vibration, and Air, Soil and Water Pollution
  • Noise and Vibration. ...
  • Air Pollution and Emission. ...
  • Soil Pollution. ...
  • Water Pollution. ...
  • Soil Erosion and Changes in Hydrology.
Sep 19, 2017

How much does rail freight cost? ›

The annual rate of increase for the initial period was $0.126 per ton-mile in 2020 compared to $0.196 per ton-mile in 2023. This is a more than 5X year-over-year increase to move freight for the 500-mile distance with costs rising from $57 per ton in 2018 to $98 per ton.

How much does rail cost per mile vs road? ›

The average light-rail line under construction or in planning stages today costs $25 million per mile ($50 million per mile in both directions). Heavy rail costs more than twice as much. By comparison, the average lane mile of freeway costs only about $5 to $10 million.

What are 3 benefits of the railroad? ›

Rail has lower fuel costs compared to road transport, especially when shipping a high volume of freight. Rail also has less costs associated with drivers and typically has better costs for drop trailer programs. Shipping via train is more environmentally friendly. Trains burn less fuel per ton mile than trucks.

What is a distinct disadvantage of railroads? ›

The railway requires a large investment of capital. The cost of construction, maintenance and overhead expenses are very high as compared to other modes of transport.

What are the benefits of rail freight? ›

Rail is sustainable – compared with trucks, it produces only about one-fifth of the emissions per kilometer traveled and ton transported. At the same time, due to its largeer cargo capacity, it is efficient, mostly punctual, and ideal for intermodal use in combination with road freight.

How many miles to a gallon does a train get? ›

The gas mileage is real, contrary to naysayers who maintain that because railroad mileage is cited in ton-miles per gallon (instead of simply miles per gallon), it means something different. Rather, the term is more specific: A freight train can move one ton of weight about 450 miles on a single gallon of gas.

What is the cheapest way to transport freight but also the slowest? ›

💡 Rail is the slowest option for ground freight shipping, but it's by far the greenest and usually the cheapest as well, as a train can handle much more cargo with only a single vessel, compared to a truck.

Which mode of transport is cheapest? ›

Railways are the cheapest mode of transport in India because it covers long distance with less fare compared to other modes of transportation.

What are the risks of rail transport? ›

Rail freight transportation poses risks such as derailments, cargo shifts, accidents at crossings, and damage to the environment in case of hazardous cargo spills.

Why is rail travel better? ›

Trains emit significantly lower levels of greenhouse gases per passenger compared to plane travel, making them a more sustainable choice for eco-conscious travellers. The shift towards electrification, with a growing reliance on renewable energy sources, further reduces the carbon footprint of rail travel.

What are the disadvantages of rail transport pdf? ›

Disadvantages include: crowding, organization of the rail system, low number of trains, delays, train routes, boarding and exiting the train, and luggage transportation. Finances and safety are seen both as advantages and disadvantages of rail travel.

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