Fleet order-to-delivery (OTD) has been brutal this model-year due to severe weather conditions, which exacerbated rail congestion, creating huge backlogs of vehicles needing to be shipped. However, some are beginning to believe the rail congestion experienced this winter is more of a symptom of a systemic infrastructure weakness and not solely the consequence of severe weather. Here's why they think so.
OTD Concerns Due to Surge of Oil Shipped by Rail
The railroad industry is the primary long-distance shipper of automobiles from assembly plants to dealers, which represents almost 9 percent of total rail freight. However, the auto industry is not the only railroad customer, and it competes with other shippers for scarce rail resources. Such is the case with petroleum companies shipping crude oil by rail, which is putting heavy demand on finite rail resources. What impact will this have on fleet OTD?