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Frequently Asked Questions

1. Why should I ship by rail?
For shipments greater than a 200 miles radius it is the more economical mode of transportation.  You can maximize your payload in the larger rail car quantities thereby reducing your freight costs when compared to shipping by truck or container.

2. How much does it cost to ship by rail?
For single car shipments a shipper will normally pay the rail carriers’ public market rate.  For larger volume shipments the rate then becomes negotiable.  This is considered a private agreement between the Shipper and the Carrier and the amount of reduction from the public rate is based on current market conditions, Shipper volumes and any inherent competition for any given lane.

3. Can’t I just negotiate with the railroads myself?
You could, but the railroads have a strong incentive to maintain their current market pricing.  Many Shippers fail to recognize that developing a strategic approach in negotiating rail rates is the first step to a successful negotiation.

4. How much does it cost to provide target rates for rail movements or to review our contracts?
Costs will vary depending on the size of the traffic being evaluated for target rate requests or potential contract negotiations. Please contact us for an individual rate quote.

5. How long does it take to negotiate a contract, conduct a benchmark study, cost a single rail movement, or cost multiple lanes?
For larger traffic volumes, which would require an in-depth study of your traffic patterns for the development of a Master Contract, the process would typically take more than a year.  A Benchmark Study analysis on average would take 3 months.  Single-line rail costing can be provided within two days of the request.  The time expended is also dependent on the information provided by the Shipper.

6. Why should I choose Commonwealth Logistics over other shipping consultants?
One of Commonwealth’s most important strengths is our experienced team who have successfully worked as lead consultants in the strategic development of negotiating tactics that have gained our clients strong carrier relationships, beneficial contract terms, and enhanced an overall service package that has helped our clients gain market share year after year.

 
   

Your Logistics

Business Partner

Contact us today for an analysis of your top five lanes of rail traffic to see where you stand relative to your competitors. We can identify moves that are either non-competitive or excessively priced, and suggest ways to lower your costs.

 

Contract Review

Commonwealth Consulting Associates can help you negotiate your next rail contract. Contact us today for a contract review consultation.

 

Logistics Services

If you would like assistance obtaining rail or truck transportation for your product, managing your rail operations or obtaining a storage lease, contact us today. Our Logistics Services department can help you with your logistics needs.

 

 
 
 

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