Quote:
Originally Posted by acottawa
Why was the freight track less congested 30 years ago? The manufacturing sector was much bigger then. Is it just oil?
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The goods that were manufactured domestically are now imported. Either way they need to be transported to their market. If anything, the lower prices by having goods manufactured in "low cost regions" has increased consumption, thus increasing the amount of goods being transported. The longer distance to transport imported goods also increases the viability of transporting by rail compared to locally produced goods.
Also, don't forget automotive sales. While 2020 was a bad year (for obviously reasons) and the previous few years have seen a roll off in demand, the long term trend has been upwards. Regardless of where they are made, cars are frequently transported by rail.
Canada New Motor Vehicle Sales 1990-2019 with Trendline
courtesy Trading Economics
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