United States and Canadian Rail Freight-Rate Structures: A Carparative Analysis |
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| Authors: | Won W Koo Ihn H Uhw |
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| Institution: | *Won W. Koo is a professor of Agricultural Economics, North Dakota State University, Fargo and Ihn H. Uhm is an inquiry manager in the Tariff Board, Federal Government of Canada, Ottawa, Ontario. This research was conducted while Ihn H. Uhm was at the Research Branch Canadian Transport Commission, Ottawa. The views and opinions presented in this paper do not necessarily reflect those of the North Dakota State University or of the Federal Government of Canada. North Dakota Agricultural Experiment Station Journal Series No. 1330. |
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| Abstract: | This paper applies rail freight-rate theory to U.S. and Canadian grain movements for both domestic and export destinations. In this analysis it is established that grain freight rates in the U.S. are largely determined by distance, shipment size, frequency of shipments, intermodal competition, and geographical characteristics of route origins and destinations. Freight rates, therefore, vary depending upon routes. A comparison of U.S. export rates with Canada's statutory rate revealed that the U.S. rate levels, in 1979, were 4.3 and 2.9 times higher for hauling distances of 200 and 1,000 miles respectively in the lowest-rate route; while it was about 7.8 and 7.5 times higher for the same mileage in the highest-rate route. The extent to which the U.S. experience is relevant to Western Canada depends largely on the manner in which Canada's statutory rate is revised after the scheduled review in 1985–86. |
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| Keywords: | Railways freight-rate structure Crow Rate intermodal competition price discrimination Mot-clefs Chemins de fer structure tarifaire pour fret tarif du Nid-de-Corbeau concurrence intermodale discrimination par les prix |
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