Professor Abouchar examines the freight schedules introduced on the brazilian railways in 1968. He concludes that they will be more inflationary than the old rates, leading to still larger deficits and to increasing demand in directions that will be harmful to national efficiency.
Distribution has largely passed from control by the supplier to control by the retailer, and from own-account to contract operation. Improvements in the road network should make journey times more predictable. The “business potential” gained from the road improvements is often much larger than the time saved.
Since rail rates in the US were partially deregulated, they have been affected more strongly by competition and less by costs. The strength of competition from trucks depends on fuel prices and improvements in technology, and, on the demand side, on the availability of rail cars.
