Yeah, these companies that are always looking to cut expenses and put more money in their pockets, they're just evil. I know that when my expenses go up, I never try to look for ways to cut expenses and make more money.
US rail carload traffic is down 15.8% over a year ago, down 18.4 percent on Canadian railroads, and down 13.3 percent on Mexican railroads. US rail intermodal traffic is down 21.7%.
Truck freight was down 12.5% in the 4th quarter of 2008, and so far in 2009 it is off by 19.3%. Tonnage is down. Freight movements are drying up. Companies are closing terminals and consolidating operations, so there is a glut of trucks and drivers. Fortunately, when the economy rebounds, trucking is usually the first to feel it, but until that happens, revenue is down and capacity is up, so something's gotta give.
Granted, companies cry wolf in good times in order to cut pay and benefits, so at times like this many people see them still crying wolf. But that's not the case here. Freight really is down, and it's being moved cheaper, so costs have to be cut.
