What is Carta Porte: The Carta Porte is a Mexican tax receipt for merchandise being transported and will soon replace the standard transfer invoice and logistics letter. Changes to the Carta Porte, as mandated by the Mexican Tax Authority, were recently announced. This new requirement was issued by the Servicio de Administración Tributaria, also known …
Category: Rail Rates
5 Marketing Ideas for Short Line Railroads
You want to run an efficient short line railroad, and making sure operations run smoothly takes time and attention. In between these essential tasks, it can be difficult to find time to grow your business and make sure you’re getting exposure. Furthermore, finding marketing strategies that resonate with your specific customers can be even more …
How to Increase Short Line Profitability and Negotiate with Class 1 Railroads
Fair rates with Class 1 railroads are important for short line railroad profitability. But when these larger railroads keep revenue allocation stagnant for small rail lines, it can be difficult to negotiate. Understanding the pricing system behind Class I railroad rates, and gaining insight into the competitive landscape can bolster your negotiating strategy. With the …
How Short Line Railroads Can Provide Value-Added Insights to Customers
Strengthening relationships with shippers along your short line railroad often means increasing railcar volume, improving word-of-mouth-marketing, and encouraging customers to use other rail services you provide. How can you provide value-added insights to customers on your short line? Let’s take a look at strategies that you can use to gain value-added insights and share these …
What is Rail Fuel Surcharge and Why is it Important?
What is Rail Fuel Surcharge? Simply put, Fuel Surcharge is a tool that was designed for railroads to recover the cost of fuel consumed to move railcars. Fuel Surcharge came about when the cost of fuel increased, and the railroads decided to pass the excess cost onto shippers. The railroads will apply Fuel Surcharge on …
Railroad Cost Indexes Explained
The Association of American Railroads (AAR) and the Surface Transportation Board (STB) calculate several indexes to measure inflation, cost increases, and productivity across rail lines. These indexes can be used to measure the health and status of the rail industry. Some rail contract rates are subject to a railroad cost index, and many contracts state …
Rule 11 Railroad Rates Benefit Shippers
Are the railroads telling you they want Through Rates converted to Rule 11? If so, that’s a good thing. Rule 11 railroad rates can give you better pricing visibility and transparency across your routes. With the right information, preparation, and negotiating strategy, you may be able to reduce your rail spend overall. Here’s how. What …
5 Tips for Effectively Negotiating Rail Freight Rates
Understanding how the railroads price your commodity is a starting point for determining your ability to negotiate rail freight rates. Railroad pricing has been cyclical over the years, fluctuating between public tariffs and private contracts. With the use of differential pricing, the railroads may provide different rates to different shippers in similar lanes. Regardless of …
10 Rail Logistics Cost Reduction Strategies
Reducing logistics spending can be an uphill battle, especially in the railroad industry. Many areas are served by a small number of carriers, or even just a single carrier. Rail logistics cost reduction strategies become even more challenging with limited negotiating power. However, there are ways to negotiate and reduce rail transportation costs. As you …
Railroad Operating Ratio and How They Price
Railroads will tell you they “price to the market.” But whose market is it, yours or theirs? How many times have you questioned the reasonableness of a rate? How do you currently compare the rate for one lane to the rate in another? How Railroads Price Impacts Their Operating Ratio The railroads always strive to …