Move More with Less

Energy efficiency is one of the biggest reasons freight rail remains so sustainable. You may have seen this metric before – railroads are pretty proud of it, and we can’t blame them – on average, railroads can move one ton of freight nearly 500 miles on just a single gallon of fuel. That’s not only impressive, it is almost mind-boggling, especially when it is compared to other forms of land transport. Trucks, for instance, consume up to four times more fuel per ton-mile than railroads. There are two big drivers of this sustainability magic: individual trains can carry hundreds of tons of freight – trucks just don’t have that capability – and steel wheels on steel tracks are just inherently more efficient + create less friction than rubber tires on asphalt. 

Carbon Output Matters

In terms of fuel consumption, railroads use significantly less fuel to transport goods over long distances. This has a direct correlation to lower greenhouse gas emissions, making freight rail a lower-carbon option as compared to other modes of transport. In fact, according to the Association of American Railroads (AAR), trains emit 75% less greenhouse gas per ton-mile as compared to trucks. 

Lowering greenhouse gas emissions has actually been a long-term strategy for the railroad industry. Since 1980, railroads have reduced their overall level of greenhouse gas emissions by 40%, thanks in large part to innovative breakthroughs in locomotive technology + operational efficiencies. In addition to industry-led initiatives, government regulations have also played a role in shaping how railroads think about their carbon output. Since the 1990s, the US Environmental Protection Agency (EPA) has set stringent emissions standards for railroads, particularly related to regulating locomotive emissions in order to improve air quality. California has also implemented legislation that would require zero-emissions locomotives by 2035.

Reduced Highway Congestion 

In probably the most tangible example for everyday life, railroads also benefit the environment by alleviating highway congestion + reducing the need for road repairs. According to the AAR, every ton of freight moved by rail helps reduce highway congestion by about one truck. Because each train has the ability to transport hundreds of trucks-worth of goods, a single freight train inadvertently replaces hundreds of trucks on the highway, which leads to less traffic congestion + reduced wear + tear on infrastructure. With fewer trucks on the highway, roads are maintained at a lower cost, and there is less need for new highways or traffic lanes to accommodate growing freight demand.

Rail Tech + Innovation

Technological innovation is at the forefront of everything + that includes the quest for sustainable solutions. Freight railroads recognize this, and have taken steps to ensure they are optimally utilizing technology to help meet their own sustainability targets. Locomotives are quite literally the powerhouse of railroads, and if there is room for sustainability improvements, they are a great candidate. Modern locomotives are already significantly more fuel-efficient than older models, but with further enhancements, like hybrid-electric + battery-powered locomotives, fuel consumption (and thereby emissions) are expected to drop even further. Some railroads, like CPKC, CSX, + Sierra Northern, are even testing hydrogen-powered locomotives, which could completely eliminate the need for diesel fuel entirely!

Railroads are also employing innovative anti-idling technology, or Automatic Engine Start-Stop (AESS), which automatically powers down locomotives when they are not in use + then starts them back up when they are needed. Union Pacific has launched an Energy Management System (EMS), which they liken to intelligent train cruise control – by analyzing both the train itself + the terrain it is traversing, it then optimizes for the best train handling strategy to control throttle + dynamic braking. In 2023, this system contributed to a reduction of 247,000 metric tons of greenhouse gas emissions.

Empowering a Sustainable Supply Chain

In an era of heightened environmental awareness + growing pressure to reduce carbon emissions, freight rail is the obvious solution for sustainably transporting all manner of goods across land. Railroads are continuing to invest in sustainable initiatives, helping to build a greener future for global supply chains. When choosing rail, shippers have the opportunity to win on two fronts – reducing their transportation-related carbon footprints + taking advantage of rail’s cost effectiveness.

At Telegraph, our mission has been clear to us from the outset: harness the power of freight rail technology to create a more sustainable supply chain. Our goal is to make doing business with railroads as seamless as possible, empowering shippers to continually choose rail, thus taking advantage of the many opportunities of carbon footprint reduction that rail offers. If you’re interested in learning more about how we are doing this, schedule a demo with our team today!

The post On Track for a Greener Future: The Environmental Power of Freight Rail appeared first on Telegraph.

Myth 1: Freight Rail is Limited in Scope and Flexibility

It is reasonable to think that rail is only a suitable option for certain types of business, or certain commodities. For example, industrial pipes? That makes sense to ship by rail. As do wind turbines, heavy machinery, food products, and bulk commodities. The real picture of what is suitable for rail shipments is much bigger, and much more varied than what initially comes to mind. According to the Federal Railroad Administration, shipping hazardous materials via rail is recognized as the safest land-based option for moving these products over long distances, so a wide variety of chemical products safely moves hundreds and thousands of miles across the US daily. Every year, freight rail moves about 75% of the new cars and trucks bought in the US. Going a step beyond that, intermodal shipments on freight railroads regularly contain everything from clothing and televisions that end up in big box retailers or at your front door, to Christmas trees, and even wine and cheese for your next dinner party. Take a look around wherever you are right now. Odds are, a majority of the items in your vicinity spent at least one part of their life cycle on a train.

Myth 2: Final Mile ETAs are Unreliable

Historically, it is true that visibility across rail networks has gaps that are currently being addressed in other forms of transportation. Shippers have become accustomed to receiving timely updates and real-time tracking with other shipping modes, and expect the same when using freight rail. North American freight rail encompasses nearly 140,000 miles of track, operating in 49 US states, Canada, and Mexico. There are six Class I railroads and over 600 shortlines that regularly interchange and partner. With different systems enabling different railroads, it can be difficult for any one railroad to ensure uninterrupted visibility from point A to point B. Furthermore, endpoints like ports, terminals, and transloaders often operate with different and disparate systems, further reducing data accessibility. That is why technology like Telegraph’s platform is increasingly important to ensure that operators and shippers alike have seamless visibility, to enable the best handling throughout the rail shipping journey. Having access to this technology takes an already wide-reaching industry, and makes it more accessible and easily integrated.

Myth 3: Freight Rail is Antiquated and Outdated

It is easy to conjure an image of a railroad from the 1800s – slow, chugging along, operating old equipment, maybe even a steam engine. Fortunately, this could not be further from the case when it comes to modern freight rail. It is a reliable, cost-effective transportation mode, often offering various service levels to give shippers the speed they are looking for in their supply chain. Freight railroads invest billions of dollars annually in improving and maintaining their own infrastructure, indicating readiness to manage shipments volumes with increased capacity. In fact, from 1980 to 2022, Class I railroads invested $780 billion in capital back into their networks.  Additionally, railroads are constantly developing and deploying new technologies, some of which ensure that freight rail continues prioritizing safety, others which allow for more timely and streamlined communications with customers and shipping partners alike. These technological investments allow them to operate at optimal efficiency, while also improving safety metrics, resulting in a better overall shipping experience for rail customers. Furthermore, by investing in equipment like locomotives operating on alternative fuels and improved freight car designs, railroads are operating more sustainably than ever, reducing greenhouse gas emissions for shippers everywhere. In fact, shipping by rail reduces greenhouse gas emissions by up to 75%, on average. Additionally, all Class I railroads have approved measures with the Science Based Targets Initiative, and are taking additional steps to curb their emissions across rail yards, mechanical facilities, and intermodal terminals further cementing their status as the modern supply chain solution.

Myth 4: Freight Rail is not a Critical Component of our Supply Chain

For many people, railroads remain an out-of-sight, out-of-mind phenomenon that they rarely think about. In fact, unless you live in an area where you are frequently stopped at a railroad crossing, or do business in some capacity with the railroads, there is a high probability that railroads are just not something you have thought about recently. It is easy, then, to think that railroads are noncritical to not only the supply chain, but the overall US economy. In reality, over 40% of all long distance freight volume moves be rail.

An Illustrious History Meets a Modern Solution

As an almost 200-year-old industry, North American freight rail has been through many iterations. Faced with an ever-evolving landscape and consumer demand for technologies and access, freight railroads have modernized in a way that challenges all of these traditional rail myths. Freight rail is evolving, accessible, sustainable, and critical. Just as it has for the past two centuries, it will continue to serve as a vital component of US infrastructure and economic growth. To see the Telegraph platform powers the future, schedule a demo on our website!

The post Railroads are the Modern Supply Chain Solution: Debunking Common Freight Rail Myths appeared first on Telegraph.

Yet, companies that are delivering are finding new methods of creating value for their end customers and, in some cases, leveraging new modes of transportation in order to accelerate delivery. As Greg Lemond once said, “It doesn’t get easier, you just get faster.” 

You may have heard last week that the new startup darling of the EV world, Rivian (NASDAQ: RIVN), reported quarterly losses of nearly $1.7B. Yes, that’s billion with a “B.” They are repositioning, changing their logistics, and — no surprise to us — utilizing a key tool for their new arsenal: rail. 

Responding to externalities is a key tenet of high performing organizations. The past 36 months have certainly shown that businesses ranging from the well-established and entrenched to the up-and-coming visionaries are having to adapt and demonstrate resilience in new and provocative ways. This is true for Rivian as well. When presented with an opportunity, they immediately looked to cost saving measures across all logistics and supply chain, which they highlighted in their earnings report. What is the key unlock to delivering vehicles for less cost? Increasing the use of rail across the entire supply chain. 

Regarding the delivery side, Rivian CFO Claire McDonough said, “In July, we started a larger effort to move from truck to rail for our outbound freight, which should provide additional cost savings as we scale our operations.”

Additional cost savings. That’s key. Using rail as the primary method of transport in your supply chain from ports to distribution centers not only saves money, but is often more predictable. In the wake of lengthy disruptions and strikes, that’s music to everyone’s ears.

A  Single Train Can Carry the Equivalent Capacity of Roughly 280 Trucks

The underlying thesis here is that Rivian can leverage the substantial network capacity and price advantages offered by the North American rail network. Considering that a single train can carry the equivalent capacity of roughly 280 trucks, there is substantial opportunity for them to gain distribution advantages through tremendous economies of scale.

Using rail, however, is not merely a chance to re-forecast in down times. Rail can be the primary method of intrastate transit for manufacturers.

At Telegraph, we build technology to help shippers like Rivian leverage more rail and intermodal in their supply chain, without having to make tradeoffs for suboptimal processes. Whether it is ensuring parts are properly scheduled into the plant, accurately tracking goods while in transit,  or providing analytics on finished vehicle velocity, we’ve developed a modern platform to help companies of all sizes unlock more capacity and resiliency in their networks.

At Telegraph, we are bullish that rail is a tailwind for the broader supply chain. Our core mission is to provide modern logistics technology and help play a role in making rail more widely accessible to shippers everywhere.

Time will tell how Rivian’s products are received in the open market. But one thing’s certain: if they succeed with their plan, it may be in large part because of their use of rail.

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