What is a captive shipper. A captive shipper is one that has no practicable alternative carrier for shipping its goods. Captive rail shippers have some regulatory protection from excessive rates.?

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Captive shipping occurs in the railroad and inland barge industries.

Basically, it's when a company shipping product has only one option for transport. Captive shippers are common in mountainous, coal-producing regions where a single railroad serves a coal mine. The coal mine company has no choice but to use that railroad to move product. That's captive shipping.

In the railroad industry, captive shippers pay on average 20 percent more to transport commodities.

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