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We utilize two proprietary software products - CRCS and Waybill Tools - to assist in the process of setting negotiating goals for our clients that are both aggressive and realistic.

Commonwealth Rail Costing System (CRCS) allows shippers to analyze the railroad's variable cost of service and price mark-up for a given origin-destination pair. It uses the most recent railroad unit costs provided by the Surface Transportation Board.

CRCS takes into account the client's current freight rate, mileage, car type, car ownership, commodity, lading weight, tare weight, switching charges, and the unit costs of each railroad making up the route. Data on average railroad unit costs varies by railroad and is updated each year. CRCS calculates the railroad's revenue-to-variable cost ratio (freight rate being charged to the shipper divided by the railroad's variable cost for the movement).

Why analyze railroad costs using CRCS?
Commonwealth Rail Costing System helps our clients:

  • Negotiate better freight rates by setting target rates based on cost
  • Estimate freight rates without actually getting quotations
  • Verify that a movement with rates at different minimum weights are consistent
  • Benchmark yearly change in freight rate mark-up over cost
  • Create mileage scales for use in contractual car return provisions

Waybill Tools database is used to research typical freight rates being charged by the railroads for moving products over various traffic lanes. This information can be used by shippers both for rate negotiations and competitive analysis.

Database Description
Each year, the American Association of Railroads (AAR) provides to the Surface Transportation Board a 3% stratified sample of the rail traffic across all the commodity segments. This annual Public Waybill sample has approximately 600,000 records of data and spans across numerous commodity segments.

Waybill Tools uses a commodity specific subset of the Public Waybill that reduces the size of the data to only those records of interest to a client. Twelve different product modules are available to meet your needs according to area of product interest (see chart below). The railroad freight data in each module spans from 1991 - 2007. Each movement record shows a number of fields, including the origin and destination, Business Economic Area, freight rate charged to the shipper, billed weight, commodity, and mileage.

Competitive Analysis Reports
Commonwealth Logistics will customize competitive analysis reports from Waybill Tools which show detail or summary statistics for rail traffic that moved between an origin region and a destination region hauling a specified commodity. These statistics include the freight rate paid by the shippers to the railroads. Freight rate information is expressed as revenue per movement or car, revenue per hundredweight (cwt.), and revenue per cwt.-mile basis.

Product Modules Available

Module STCC Records
Chemicals 28 760,000
Petroleum Products 29 144,000
Metallic Ores 10 82,000
Coal 11 700,000
Crude Petroleum 13 10,000
Non-Metallic Minerals 14 284,000
Food 20 616,000
Wood/Lumber 24 422,000
Pulp/Paper 26 404,000
Rubber Products 30 40,000
Clay, Concrete, Stone 32 244,000
Primary Metal Products 33 272,000
 


 

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