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Rain Transportation

Rain Transportation

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Executive summary

Companies in the Rail Transportation industry operate railroads across the United States, including both large (Class 1) railroads, regional railroads and local line-haul railroads that carry freight or passengers. Positive economic conditions boost demand for domestic and foreign goods alike, necessitating freight transportation. Further, as shippers seek environmentally friendly practices or low-cost transportation for bulk goods, fuel-efficient rail transporters receive high demand.
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industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

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Reference Wordlist

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

Colloquial Terminology

Unpackaged commodity cargo, liquid or dry, transported in large quantities.

A railroad with annual operating revenue of $378.8 million or more.

An additional charge issued by transportation operators to cover the increased cost of fuel. It is charged in addition to the freight rate.


The prices of crude oil and natural gas collapsed in 2020, culminating in lost revenue from fuel surcharges.
Surcharges are commonly used by industry operators to limit the effects of volatile changes in fuel costs and protect profitability. While lower operating costs bolster profit, they also lower operators' fuel surcharge revenue. However, in 2020 at the onset of the COVID-19 (coronavirus) pandemic, lower crude oil and natural gas prices were coupled with decreased demand for industry services. As a result, industry revenue decreased an estimate 11.8% in 2020. In addition, industry profit, which would normally benefit from lower prices of crude oil, also declined significantly in 2020. As demand for industry services recovered and crude oil prices surged in 2021, industry revenue recovered but industry profit still has not returned to pre-pandemic levels. Altogether, industry revenue is expected to rise at an annualized rate of 3.4% to $98.6 billion over the five years to 2022, including an estimated increase of 11.5% in 2022 as crude oil prices are expected to continue to increase.

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