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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.
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