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United States and Canadian Rail Freight‐Rate Structures: A Carparative Analysis
Author(s) -
Koo Won W.,
Uhw Ihn H.
Publication year - 1984
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1984.tb02130.x
Subject(s) - competition (biology) , statutory law , destinations , business , transport engineering , international trade , agricultural economics , international economics , economics , geography , engineering , political science , tourism , ecology , archaeology , law , biology
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.