Rail Shipping Rate Quote Delays And Rate Increases Amid COVID-19 Outbreak

The COVID-19 pandemic has changed workplaces and lifestyles across every industry around the globe. Railroad companies are no different. As many employees are working from home or laid off to ensure safe social distancing in the workplace, rail shipping quotes delays and rate increases are appearing more frequently across North America. Are your shipping rate

Have the Railroads Stopped Negotiating?

Are the railroads telling you that privately negotiated contract rates are reverting to public tariffs? This may become more prevalent, but that does not mean the railroads have stopped negotiating. Public tariffs have long been in existence, providing easy access to rates with low administrative costs. But over the years, many shippers have been successful

Selecting a Rail Transload Facility

Rail transload facilities play a vital role in many companies’ shipping networks. These facilities allow shippers to realize benefits from a combination of rail and truck. Perhaps you’ve used the same transload facilities for some time, and you’re wondering about other opportunities. Or perhaps you’re reassessing your shipping plan to accommodate new receivers, new products,

Comparing the Costs of Rail Shipping vs Truck

Companies that transport dry and liquid commodities utilize the modes of truck, rail, barge, ocean and pipeline. Some shippers are fortunate enough to be able to utilize barge, ocean and pipeline that can provide significant cost savings. However, most shippers rely on truck, rail, or a combination of the two. When comparing the costs of

Rail Rate Tariff Renewals

As the last month of Quarter 3 closes in, railroad freight rates have continued to take increases.  Listed below are some rate authorities that are renewing in the next couple of months. Tariff Updates Rate Authority Commodity Expected Increase Effective Date CN 4080  Soybean Meal and Products ~5% 9/1/2017 CSXT 2061 Molasses ~2% 9/1/2017 CSXT 29116 Asphalt

Should You Bundle Your Moves When Negotiating Rail Rates?

Being strategic with your rail rate negotiations means establishing goals for your current and future contracts, clarifying each party’s values, and challenging the ground rules. Although you should always negotiate with your entire rail transportation portfolio in mind, this does not mean that it is always best to bundle your rates when negotiating. Shippers often

Maximize Your Rail Rate Negotiation Leverage

  As a follow up to the Rail Rate Guide that we published last month, here are some additional tips for maximizing your negotiating leverage with rail carriers. Take the time to be strategic. Working in logistics can feel like a plate spinning skit. It’s fast paced work, you have to juggle multiple priorities, and there can be

STB Announces Railroad Cost of Capital for 2016

On August 7th the Surface Transportation Board (STB) announced they had determined the railroad industry’s after-tax cost of capital for 2016 was 8.88 percent. The cost-of-capital figure represents the board’s estimate of the average rate of return to persuade investors to provide capital to the freight-rail industry. It is an annual calculation used a variety

Changes to NS Tariffs for Car Storage and Improperly Loaded Cars

The NS announced that they are making to their Demurrage, Accessorial and Switching Tariffs effective October 1.  Here is a summary of the changes: NS’ Demurrage and Storage Rules and Charges Tariff, NS 6004-D:  A gradual reduction in Empty Private Car Storage credits from five credits to two over the course of the next 10 months.