American railways and truckers are at a crossroads
Will their fortunes diverge?
![A Canadian Pacific freight train rolls through one of seven railroad crossings on Wednesday, Sept. 28, 2022, in Camanche, Iowa. A merger of Kansas City Southern and Canadian Pacific railways will increase train traffic and length of trains traveling through the town, potential blocking rail crossing for extended periods of time. (Tammy Ljungblad/Kansas City Star/Tribune News Service via Getty Images)](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20230408_WBP001.jpg)
In some ways, freight rail and trucking seem to be direct competitors. Companies that need to get a container of goods from one city to another can choose between them. Rail is more cost-effective, fuel-efficient and can move greater volumes on a single trip. Trucking is usually faster and, unless the container is going from rail yard to rail yard, more direct. In America, both sectors boomed during the pandemic, as service-deprived shoppers stocked up on stuff. Now both are bracing for an economic slowdown, which may also affect them in similar ways.
This article appeared in the Business section of the print edition under the headline “Watching the wheels”
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