“Rational” and “Disciplined” are words rarely used when talking about freight railcar supply. But perhaps this time is different.
Nothing highlights the impact and risks of the global supply chain on the North American rail industry better than wheels. Yes, wheels for rail rolling stock: freight cars, passenger and transit cars, and locomotives.
The response from my previous article, “North America Rail Supply and China: Why We Should be Concerned,” has been overwhelming and supportive. Apparently, I ripped a Band-Aid off a topic that’s been unfolding and finally being realized by many over the past decade.
Caveat: I am a free-market capitalist who believes in the importance of trade to elevate global prosperity. I believe in comparative advantage, and how countries excel at the supply of certain goods and services, to the benefit of others. I now believe that there needs to be market boundaries, for the long-term health of entire industries and the well-being and security of our citizens.
ARS Canada Rolling Stock Co. is entering the North American freight railcar market with support from a $3 million repayable contribution from the New Brunswick Provincial government in Canada. Here we go again.
This editorial addresses the significant impact of AAR truck standards S-286 and M-976 on the rail industry and why tariffs should be applied to railcars loaded to 286K GRL (Gross Rail Load) that don’t have these track-friendly trucks.