In this blog we’ll look at how data is built into the foundation of a Rail TMS, some ways you can overcome common challenges with the data in the system, and an example of an RSI Logistics client who found success with their data through Rail Command. In whatever way rail plays a part in your supply chain, understanding how data and a Rail TMS can transform your operations is part of finding efficiency and operations.

The Role of Rail Freight Data in a Rail TMS

Shipping freight by rail generates an immense volume and variety of rail freight data. Entire fleets worth of equipment generates records from lease expiration dates to maintenance records. Building a pattern for a shipment involves shipping parties, commodities, routing, and more; all of which is data that is vital to your records. Rail rates generate information on tariffs, rates, contracts, expirations, and beyond.

These are just a few examples of how data is generated throughout the process of shipping rail, and there are many similar examples. Harnessing this data and being able to utilize it is vital; without using the data as a foundation for decision making, optimization, or results verification, the burden falls on manual methods. These methods can be dangerous, as they are much more prone to mistakes, errors, and incorrect judgements.

This is where a Rail TMS comes in.

Imagine overseeing the renewals of numerous equipment leases. Traditionally, this could involve manually building and updating a calendar – an inefficient and possibly error-prone process.

However, by using a Rail TMS like Rail Command, all that information is automatically collected and a renewal calendar is generated based on your specific equipment’s renewal and expiration dates. This method not only saves you time but also reduces the risk of making an error that could prove costly. With accurate, real-time information at your fingertips, you’re better equipped to make informed decisions.

Core Functions of Rail Freight Data in a Rail TMS

A Rail TMS optimizes your logistics from the ground up and provides friendly, comprehensive data insights throughout each step. Though there are many phases, stages, and functions of rail logistics within a Rail TMS, for our purposes in this blog we’ll roughly separate them into four phases: Planning, Execution, Monitoring, and Optimization.

Planning Phase

This initial stage is where the process of setting up a rail shipment, or planning logistics for your supply chain, takes place. This phase involves vast amounts of data and details related to rail rates, shipment patterns, equipment details, maintenance schedules, and much more.

What sets a Rail TMS apart from other methods of managing rail logistics is its ability to connect all these data points within a single system. This ensures planning without manual oversight and reducing manual input of data.

Since there is so much data involved in planning your rail supply chain, having it be automated and within one system, rather than scattered across various other systems, saves you a significant amount of time and money.

Execution Phase

Execution refers to the process of carrying out the rail shipping transportation plans you developed in the previous phase. Most of this revolves around shipment execution but can also overlap with the management of your active railcars and shipments, as well as the following phase, monitoring.

Much like planning, a Rail TMS utilizes your data by uploading and storing all planned details, which can then be utilized in some reporting and saved as a digital record of shipments. This automated documentation is essential for record keeping purposes and helps in the optimization phase, where you can use these records to improve costs and reduce charges.

Monitoring Phase

With sophisticated tools like Car Location Messages (CLM) and Global Positioning Systems (GPS), a Rail TMS offers monitoring capabilities in one system. However, monitoring goes beyond just visibility into shipments; it can also include Estimated Time of Arrivals, exception logs, diversion requests, and more.

Solutions like Rail Command offer visibility into all of these aspects and more. Furthermore, this information is then made available for analysis through automated methods. For instance, Rail Command features a summary of data visualizations for bad orders (a railcar deemed unsafe to continue moving due to mechanical issues), including history of year-over-year, bad orders by reason and railroad, location and sighting destination, and more.

Optimization Phase

Perhaps the most powerful feature of a Rail TMS is its ability to empower optimization of your operations through your rail freight data. It compiles your data from the above three phases and beyond into user-friendly formats, offering deep dives into everything from dwell to fleet turns, shipment volume to on-time performance, and much more as well. These data visualizations support your strategic decision-making, uncovering opportunities to save both time and money.

In managing large data sets, a Rail TMS shines by not merely handling but actively parsing and utilizing data for effective rail supply chain management. This capability ensures rail professionals at all levels can make informed decisions based on comprehensive analysis and insights.

Overcoming Common Rail Challenges with Rail Freight Data and a Rail TMS

Rail shipping, while efficient, comes with its set of challenges that can disrupt your supply chain and inflate operational costs, such as rail rate management, problematic railcars, and demurrage management. Leveraging a Rail TMS equipped with the right data sets, like Rail Command, can be a game-changer in not just overcoming these challenges, but finding ways to optimize effectively. The four phases we just examined don’t always take place in the order we examined them; for instance, optimization can occur throughout any stage of rail logistics. Using a tool like Rail Command you can improve many aspects of your operations.

Below are three examples of challenges that can be overcome with a Rail TMS and rail freight data.

Rail Rate Management

Managing rail rates manually can be a challenging and potentially error-prone process. Traditionally, tracking contracts, tariffs, and fuel charges involves a substantial amount of paperwork and manual data entry. This method not only consumes valuable time but also increases the risk of costly mistakes. Missed updates on tariff changes or expiring rates can lead to unexpected fees and operational inefficiencies.

However, a Rail TMS like Rail Command overcomes the challenge of rail rate management by automating most of these processes. Our solution notifies you of pending rate expirations, ensuring that you’re always ahead of changes and can act promptly to renegotiate or adjust plans. Additionally, with automatic updates for tariff changes and fuel surcharges, your team no longer needs to manually input this information. Plus, an integrated automated Fuel Surcharge (FSC) calculator adjusts rates based on current patterns, providing accurate and timely data that helps in making informed financial decisions.

Problematic Railcars

Staying up to date with the precise location and status of your shipments is crucial. Traditionally, this would mean manually checking each individual railroad’s website for your railcars, a tedious process that can significantly delay access to vital information. This manual method not only strains resources but can also result in missed opportunities to proactively address issues, potentially impacting your customer relationships due to slow responses and delayed shipments.

Solving this challenge with rail freight data in a Rail TMS is comprehensive and proactive. A Rail TMS like Rail Command offers automated exception reporting of railcar tracking data, continuous updates through visibility feeds, and the capability to track diversions as they happen. These features dramatically change how you monitor and manage your shipments. Instead of sifting through multiple platforms to gather data, a Rail TMS provides a unified view, making it much easier to identify and troubleshoot jeopardized shipments swiftly.

Demurrage Management

One of the persistent issues you may face in rail logistics is the looming threat of demurrage charges. This penalty, resulting from railcars being detained beyond a specified period of time for loading and unloading, can quickly escalate and hurt your bottom line. Manually tracking the “free time” of each railcar requires constant work and can be fraught with errors, as the task involves painstakingly following each car’s movements and calculating the potential charges, a process that is not only time-consuming but also leaves room for human error.

Fortunately, with a Rail TMS like Rail Command, you can automate the calculation of demurrage charges. Should a railcar exceed its allotted free time, the system can automatically generate invoice-ready reports. Furthermore, you can input your own demurrage rules into the system and visualize the data via demurrage data visualizations.

Case Study: Rail Freight Data Management with a Rail TMS

As we’ve seen, traditional methods of managing rail freight data often rely on manual efforts, which often lead to inefficiencies, particularly a loss of time. As we’ve also examined, a major aspect of a Rail TMS is taking all that data and putting it into one comprehensive system where it can speak to itself as well as be automated to save on time and potential errors.

The Challenge of Our Client

A client of RSI Logistics was encountering this very challenge with manual data entry and management. Their existing system was based on these manual processes and led to time-consuming processes and potential inconsistencies due to human error. Furthermore, their data didn’t talk to each other, making finding insights a manual and unreliable process. They spent hours a week just managing the data and studying it.

This client needed to improve their data management and efficiency, as well as overcome past unsuccessful attempts to develop a reliable system.

The Solution We Provided

Rail Command, our Rail TMS, solved the client’s challenge. By plugging their rail shipping logistics and rail freight data into Rail Command, they were able to bring their data together into one system that made everything comprehensive. The dashboards in Rail Command enabled smooth data integration across multiple systems and provided valuable data visualizations.

By incorporating real-time updates, manual entry was eliminated, and the interactive customization features allowed clients to adjust the interface to their specific needs. Furthermore, one-click automated reporting capabilities ensured accurate reports.

Rail Freight Data Takeaways

Using a Rail TMS to manage rail freight data significantly streamlines data management and drives operational efficiency. This enables you to make confident, data-driven decisions.

1. Streamlined Data Management: This dashboard excels in refining data management processes and a user-friendly interface that results in direct operational efficiencies.
2. Improved Data Accuracy: By automating data entry and reporting, the margin for error shrinks considerably.
3. Cost Efficiency: Tailoring the solution to meet specific needs directly from the get-go avoids the additional costs and time associated with re-developing or tweaking ill-fitting solutions.

Shifting from manual data processes to a Rail TMS solution’s automated, comprehensive approach to data means embracing efficiency, accuracy, and a competitive edge in rail logistics. The transformation is significant: easier data management, clearer insights, and more confident decision-making.

For you, the dedicated rail professionals, the move to a data-driven approach is a crucial step in mastering your operations and leading the industry forward. As rail shipping experts guiding fellow experts, we recognize the power of these tools not only streamline your workflow but also pioneer new industry standards.

Together, as we harness the potential of cutting-edge Rail TMS features, we’re not just keeping up with the times—we’re driving the future of rail logistics.

The post How Rail Freight Data is Used in a Rail TMS appeared first on RSI Logistics.

Whether you’re a rail shipper looking for areas of new business, a government official tracking industry trends, or a student studying the economics of rail freight, Rail Info offers the tools you need to stay informed and effective. Moving forward, we’ll explore the data sets available within Rail Info.

If you’re new to our services, we invite you to explore the benefits of Rail Info with a no-obligation, one-month trial. Sign up and empower your rail-related endeavors today.

Table of Contents

• Benefits of Rail Industry and Railroad Data
• Rail Industry Resources
  • Resources for Optimizing Rates
    • Fuel Surcharge Trends
    • Tariff Change History
    • Railroad Cost Indexes
    • Tariff Expiration Calendar
  • Resources for Understanding Rail Performance
    • Delay Report
    • Velocity
    • Volume Reports
  • Resources for Determining Options
    • Serving Carrier Reciprocal Switch (SCRS)
    • Short Line Railroad Directory
    • Storage Directory
    • Transloading Terminal Directory
  • Resources for Measuring Economic Activity
    • Fuel History
    • Railroad Revenue
    • Operating Ratio
    • Volume
    • Fuel Surcharge Percent of Fuel Expense

Benefits of Rail Industry and Railroad Data

Exploring the rail industry data and analytics available in Rail Info can give you a better understanding of the market, help you plan your logistics more effectively, and find opportunities to save money.

• By leveraging insights from data such as rail rates, fuel costs, or the performance metrics of railroads, you can manage shipping expenses more effectively and optimize your supply chain’s strategies.
• Access to detailed analytics on rail shipping costs and performance against the industry can help you adapt to market trends, improve operational and business models, and manage price volatility risks.
• Understanding the geographical reach and capabilities of rail service providers allows for better market positioning. In addition, having detailed information on facilities and services helps in planning and executing logistics operations more efficiently.
• Visibility into major railroads’ performance metrics and benchmarking against industry standards offers insights into a railroad’s operational efficiency and financial stability.
• Establishing connections with railroads and service providers fosters favorable agreements and collaboration on logistical challenges.

Rail Industry and Railroad Data Resources

Resources for Optimizing Rates

Rail Info provides tools that translate data on rail rate analytics. These can be used to provide insights into fundamental aspects of rail shipping costs. From there you can also look for areas of optimization and possibilities for negotiation with the carriers.

Tariff Expiration Calendar

Even though the railroads can adjust their tariffs with little notice, use this resource to give you an idea on when the railroads are expected to review their tariffs and make updates.

Fuel Surcharge Trends

Get an idea of how industry wide fuel prices are trending as well as a historical view on mileage based and percentage-based fuel surcharges.

Tariff Change History

Using a sample size of public railroad tariffs, you can track rate changes and can view them from a historical, current, and tariff distribution perspective. Using this data can provide some insight into how your rates are performing against a benchmark.

Railroad Cost Indexes

The Rail Cost Adjustment Factor (RCAF) is an index formulated to represent changes in railroad costs incurred by the nation’s largest railroads and is a useful data point for understanding if rate increases by the rail carriers are reasonable. The RCAF measures the rate of inflation in railroad inputs and is comprised of seven component indexes: labor, fuel, materials and supplies, equipment rents, interest, depreciation, and other expenses.

Resources for Understanding Railroad Data Performance

Railroad Performance has dashboards that cover indicators of the Class I railroad’s performance. The largest rail carriers in North America are these Class Is, and they dominate the rail freight market. Using their reportable metrics, you can see the overall health of the rail network, find trends, and monitor performance.

Delay Report

Use the delay report to see how traffic is moving through classification yards. Insights here can help anticipate where your transit delays could happen. Use the report and filter the delay reports by railroad, trains, and railcars held to find where your traffic is being impacted.

Velocity

Velocity is the speed of a train from origination to destination, including the amount of time a train dwells in a yard for a crew change, pick-up or set off of traffic. Try comparing the delay report to the velocity report. When velocity is up, dwell should be up as well.

Volume Reports

This report gives you a view of the total number of cars operational by Class I railroads and includes a historical view. Identify and monitor trends and determine how carriers are performing.

Curious to see how your volume compares to the industry? With the weekly carloads view you can find more approximate benchmarks.

Resources for Determining Options

Whether you’re a rail shipper or interested in the various options involved in rail shipping logistics, Rail Info’s Directories give you a wealth of information concerning options throughout the rail industry. You can use these to research options for your rail logistics or along the networks.

Serving Carrier Reciprocal Switch (SCRS)

This tool provides a standardized verification process for determining whether a railroad may serve, or under what conditions a railroad may serve, a specific customer. Our SCRS Directory also provides valuable weight and plate information for each customer.

Short Line Railroad Directory

Use this interactive map to find information for Short Line Railroads, those railroads falling outside the Class I classification. Filter the list down to focus on a specific state and railroad. You can also use find details such as website links, as well as sales and industrial development contacts.

Storage Directory

The Storage Directory was developed to provide a map of car storage locations across Canada and the United States and allows you to research organizations with available locations in specific regions.

Transloading Terminal Directory

This directory provides a one stop shop to find a transload facility to meet your needs. This interactive map is composed of terminals throughout North America, including our RSI operated terminals.

You can learn more about RSI’s terminal operations here – Rail Terminal Services | Bulk Terminal – RSI Logistics

Resources for Measuring Economic Activity

This section provides a selection of resources and tools for measuring economic activity, enabling you to gain a deeper understanding of economic trends, performance metrics, and their implications on broader market dynamics.

Fuel History

In addition to our fuel surcharge resources, Fuel History breaks average fuel costs down by the Class I railroad and by yearly quarter.

Railroad Revenue

With the Railroad Revenue dashboard, you can view revenue metrics for each of the largest Class I railroads.

Operating Ratio

Typically, the Operating Ratio (OR) is a primary measurement of a railroad’s efficiency. It can be defined as a company’s operating expenses as a percentage of its revenue. A lower Operating Ratio implies a more efficiently operated railroad.

Volume

This is a report to show the volume of shipments for each of the Class I Railroads and includes cars and intermodal units shipped. This is a higher-level view of volume than what can be seen in the volume reports under Railroad Performance and is an important measure for understanding how efficiently a railroad is utilizing its assets.

Fuel Surcharge Percent of Fuel Expense

This is another report to show the portion of fuel costs that are being recouped through the fuel surcharges being applied.

If you’re in the rail industry, related fields, or just interested in this mode of freight transportation, making the most of data analytics can be a game-changer. Mastering negotiation tactics, keeping a lid on costs, making smart choices based on data, and knowing your market positioning can put you ahead of the curve. And it’s not just about optimization—by utilizing these resources, you’re also set to build stronger partnerships and stay on the right side of policies and regulations.

The post Transform Railroad Data into Insights with Rail Info appeared first on RSI Logistics.

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 that there will be a minimum increase imposed regardless of what the cost index indicates.  This can result in the rail rates increasing even when the index does not. When shippers enter contracts subjected to railroad cost indexes, it is important to be aware of any minimum increase being imposed.

There are two main railroad cost indexes that are outlined below:

1. The Rail Cost Adjustment Factor – RCAF (unadjusted and adjusted)
2. The All-Inclusive Index Less Fuel – AII-LF

What Are Railroad Cost Indexes?

Railroad cost indexes are historic benchmarks using contemporary data to assess costs like fuel, inflation, labor, supplies, overhead, and more. Railroads and rail regulators use these indexes to determine how to price their services, and whether or not these prices make sense with the current economic conditions. The main indexes used are the Rail Cost Adjustment Factor (RCAF) and All-Inclusive Index Less Fuel (All-LF), which we will explain in more detail.

The Rail Cost Adjustment Factor (RCAF)

The Rail Cost Adjustment Factor (RCAF) was established in response to the Staggers Act of 1980 and is no longer the predominant railroad cost index used in contracts. The RCAF is published quarterly by the STB, as required by law under 49 U.S.C. § 10708, and measures the rate of inflation in railroad inputs, like labor, fuels, equipment, supplies, etc. The Association of American Railroads (AAR) calculates this number, and it is then reviewed, approved, and published by the STB. The major issue with the RCAF is that it includes fuel costs, which are addressed by the fuel surcharge rates imposed by the railroads.

There are five indexes associated with the RCAF:

• The Forecasted All-Inclusive Index – The forecasted price index that underlies the RCAF, including labor, fuel, materials and supplies, equipment rents, depreciation, interest, and other expenses. These are first presented as a forecast, and do not reflect the actual numbers.
• The Actual All-Inclusive Index – Two quarters after the Forecasted All-Inclusive Index is calculated, the actual index is calculated in order to determine forecast error. Generally, only the amounts for labor, materials and supplies, and interest differ between the actual index and forecasted index.
• The RCAF (unadjusted) – This index reflects cost changes experienced by the railroad industry, without reference to changes in rail productivity, and is derived by adjusting the Forecasted All-Inclusive Index by the “forecast error” from the second prior quarter.
• The RCAF (adjusted) – This index reflects national average productivity changes as originally developed and applied by the ICC, the calculation of which is currently based on a five-year moving average. It is derived by modifying the RCAF (unadjusted) for moving five-year productivity gains as soon as the latest quarter of productivity is available.
• The RCAF-5 – Reflects the five-year moving average productivity adjustment factor which is incorporated into the index during the first quarter of the year. This index also reflects national average productivity changes; however, those productivity changes are calculated as if a five-year moving average had been applied consistently from the productivity adjustment’s inception in 1989.

RCAF Unadjusted vs RCAF Adjusted

There are two versions of the RCAF: the RCAF-Unadjusted and the RCAF-Adjusted.   The difference is the consideration of productivity improvements. The RCAF-Unadjusted Index is based on several components, including labor, fuel, materials and supplies, equipment rents, depreciation, interest, and other expenses, but does not take productivity improvements into account.  The RCAF-Adjusted Index adjusts the RCAF-Unadjusted for productivity gains and allows regulators to assess future rates relative to performance.

All-Inclusive Index – Less Fuel

The All-Inclusive Index – Less Fuel (All-LF) is the more widely used index in rail rate contracts today.  It provides a parallel measure of the RCAF-Unadjusted without the influence of the fuel cost component, which can shift dramatically at different times. All other components (labor, materials, and supplies, etc.) match those used to calculate the RCAF, but productivity improvements are not factored into this index.

The following rail cost index definitions are quoted or paraphrased from STB documents and AAR descriptions. To view the most recent railroad cost indexes, visit this page.

How are Railroad Cost Indexes Used?

Railroad costing indexes may be used in contracts to apply rate increases.  When negotiating rail rates, it is important to consider both the current rate, as well as the increase that may be applied.  Many contracts that are subject to a railroad cost index also contain a minimum, which will allow the railroad to apply an increase even when their costs have not increased.  Shippers can negotiate these contract terms; however, analyzing cost and rate trends and determining what they mean for your business can be a challenge.  We’ve created useful tools, like Rail Impact, and guides, like the Shipper’s Guide to Rail Freight Rates, to make this data easier to use. If you’re uncertain about your rail rates or how to proceed, we’re happy to help.

The post Railroad Cost Indexes Explained appeared first on RSI Logistics.

Since the transportation sector substantially contributes to emissions, this question is particularly significant.

In this blog post, we’ll explore the world of freight transport, delving into aspects such as capacity, efficiency, cost and particularly, environmental impact. Our goal is to compare rail transport and truck transport and understand how each contributes to greenhouse gas emissions.

What is Rail Transportation?

To best answer the question of is rail better for the environment than trucks, we first have to examine the North American rail freight transportation industry.

Rail transport is a method of transporting passengers and goods on wheeled equipment running on rails, which are laid on tracks. Rail transportation as we know it began in the 6th century BC in ancient Greece, where tracks of stone were built to accommodate horse-drawn wagons to aid in the transportation of goods.

However, the true revolution started in the early 19th century, alongside the industrial revolution. The first full-scale working railway steam locomotive was built in the United Kingdom in 1804 by the engineer Richard Trevithick. By the 20th century, railways became a major player in moving freight and passengers over long distances. Electric locomotives, high-speed rail, and diesel-powered trains emerged, increasing the efficiency and speed of rail transport.

As we entered the 21st century, advancements in technology have further revolutionized rail transportation. Today’s locomotives are powered by a wide variety of energy sources including electricity, diesel, and even magnetic levitation, which significantly reduces friction and allows for greater speeds.

Freight rail has also seen vast improvements. Each year, North American rail networks carry around 1.6 billion tons of raw materials and finished goods, supplying industries and consumers of every possible variety. Intermodal freight is now capable of carrying diverse cargo, driving cross country and international trade, and improvements in railcar designs allow greater and greater quantities of freight to be transported across North America.

The below information is gathered from the Association of American Railroads.

Comparison of Rail and Truck Transportation Numbers

When talking about the two most widely used forms of land-based freight transportation, rail and truck transportation differ significantly in the way they operate, their efficiency, and their overall environmental footprint.

Capacity and Efficiency

One of the most significant advantages of rail transport over truck transport is its high carrying capacity. Since rail cars can hold three to four truckloads of cargo, a single freight train can haul a load that would otherwise require over 300 trucks. This means fewer traffic congestion issues and a more efficient use of transportation infrastructure.

Distance and Fuel Efficiency

Another important factor is the transportation range and fuel efficiency. Trains excel in covering long distances. In the US, for instance, freight trains can move one ton of goods approximately 470 miles on a single gallon of fuel, compared to trucking’s approximately 134 miles per gallon of diesel. This makes rail three to four times more fuel-efficient than trucks.

Cost Effectiveness

In terms of cost, rail transportation often proves to be more cost-effective than trucks, especially over long distances. Railways have lower fuel costs, less need for drivers, and less expenditure on road maintenance. Moreover, considering that one train can carry the equivalent of numerous trucks, economies of scale can be achieved, reducing the per-unit cost of shipping goods by rail.

To compare the costs of rail vs truck shipping, consider the movement of a bulk commodity from Houston, TX to Cleveland, OH. The truck cost in this example lane is approximately $ 5,159 per load, whereas rail would be $ 6,676 per car. However, when comparing the costs of rail vs truck shipping, you must apply a ratio of 1:4, since one railcar equates to approximately four truck loads.

As we see below, though rail has a higher cost per shipment, the cost per ton is significantly less than shipping by truck.

It should be noted that trucks have the advantage of flexibility, as they can reach most locations directly, while trains are limited to where the tracks lead. But with the systematic use of transloading (combining rail and truck for the same journey), and intermodal (combining multiple modes both the freight efficiency of rail and the flexibility of trucks can be leveraged.

Impact on the Environment: Rail vs Truck

Sustainability in Freight Transportation

Sustainability in transportation cannot be stressed enough considering the sector’s significant impact on the environment, society, and economy. Transportation is a major contributor to global carbon emissions; in 2021, transportation accounted for about 29% of total U.S. GHG emissions. Shifting towards more sustainable modes of transportation can help mitigate climate change and transition to a more sustainable economy.

However, answering the question – is rail better for the environment than trucks? – goes beyond reducing CO2 emissions. It also involves:

• Improving energy efficiency.
• Utilizing renewable energy sources.
• Minimizing land use and noise pollution.
• Promoting safety.
• Ensuring affordable access to mobility, especially for disadvantaged communities.

Rail freight transportation is making great strides on the sustainability front. As discussed previously, trains are far more efficient than trucks considering their capacity, fuel consumption, and carbon emissions. Moreover, recent and near future technologies make it possible for freight rail locomotives to run on renewable energy sources, such as electric or even hydrogen power. These technologies open avenues for a truly sustainable transportation network.

Understanding Greenhouse Gas (GHG) Emissions

Greenhouse gas (GHG) emissions refer to the release of gases into the Earth’s atmosphere. These gases trap heat, contributing to the greenhouse effect, and can create smog, a pollutant in our air. Major types of GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases.

Here’s a brief look at the various GHGs:

1. Carbon Dioxide (CO2): CO2 is the primary GHG emitted through human activities. These activities are primarily the burning of fossil fuels for electricity, heat, and transportation.
2. Methane (CH4): This is emitted during the production and transportation of coal, oil, and natural gas. Methane is also the main component of natural gas. Alarmingly, methane’s capacity to trap heat in the atmosphere over 20 years is 84 times higher than that of CO2.
3. Nitrous Oxide (N2O): This is mostly emitted during agricultural and industrial activities. N2O is approximately 300 times more potent at trapping heat than CO2.
4. Fluorinated Gases: These are synthetic, potent GHGs that are emitted from a variety of industrial applications. These gases are sometimes used as substitutes for ozone-depleting substances, which are being phased out.

Rail vs Truck: CO2 Emissions

In the context of transportation, the dominant GHG emitted is CO2. Vehicles running on diesel and gasoline, such as trucks, contribute heavily to CO2 emissions. Conversely, trains, particularly electric-powered ones, can significantly reduce GHG emissions, proving to be a more sustainable option for transporting freight.

Combining Rail and Truck: Transloading

Transloading is the process of transferring freight goods from one mode of transportation to another during the journey. This method combines the strengths of both rail and truck transportation. This allows you to take advantage of the long distance cost savings of rail and the last mile flexibility of trucking.

Benefits of Transloading

In terms of efficiency, cost, and especially environmental impact, rail transport wins over truck transport for long-haul freight movement. However, rail often suffers from final mile challenges that truck more easily overcomes with greater flexibility. Using rail and truck together results in a synergy that:

• Improves efficiency through exploiting each mode’s strength
• Reduces overall logistical expenses
• Lessens environmental impact per unit of goods moved

Therefore, transloading attempts to answer the question – is rail better for the environment than trucks? – not purely through competition but via a collaborative method that maximizes the benefits of both modes.

RSI Logistics Transloading Service

If you’re looking to optimize your freight logistics, while also reducing your carbon footprint, we offer expert transloading and bulk terminal services. Leverage the strengths of both rail and truck transport and move towards more sustainable, efficient logistics.

Is rail better for the environment than trucks? With evidence suggesting lower carbon emissions, greater fuel efficiency, and superior capacity, it’s clear that rail transport has significant advantages over trucks from an environmental perspective. Our planet is facing challenges such as climate change, making it more urgent than ever to adopt sustainable practices, which includes favoring eco-friendlier modes of transport whenever feasible.

But as we move forward, it’s equally essential to continue innovating, researching, and implementing solutions that decrease the environmental footprint of all forms of transportation. Everyone has a role to play in this – policymakers in creating advantageous regulations, businesses in prioritizing sustainable logistics, and consumers in making environmentally aware choices.

The post Green Rail: Is Rail Better for the Environment than Trucks? appeared first on RSI Logistics.

The Imperative of Rail Freight Tracking and Tracing

In the realm of rail freight, the significance of proficient tracking and tracing operations cannot be overstated. While these processes may seem straightforward, they are, in reality, beset with a number of challenges that can hinder operational efficiency and profitability.

First and foremost, the sheer geographical expanse of rail networks makes it difficult to maintain visibility of all railcars. Traditional methods of tracking—while functional—often rely upon periodic updates rather than delivering a continuous stream of data. This lag in information can result in mismanaged resources, delayed operations, and ultimately, lost revenue.

Secondly, the industry grapples with the issues of manual data entry errors and fragmented communication platforms. Discrepancies in data analysis and reporting can translate into misinterpreted or delayed information, creating inefficiencies that can take a toll on operational productivity.

Lastly, the dependence on legacy tracking systems poses a challenge. Such systems often lack integration capabilities with modern technology platforms, constraining the rail freight operations to be reactive rather than proactive.

These challenges, if not addressed promptly, can have large cost and efficiency implications. Inefficient tracking systems can result in irregularities in the transit – such as delays and misplacements – and administrative errors. These operational setbacks not only disrupt service quality but also escalate operational costs including labor, fuel, and maintenance overheads.

Highlighting the financial impact, an inefficient tracking system can reduce a company’s efficiency, which can in turn directly hit its bottom line. Being competitively marginalized in an industry where speed, timeliness, and reliability are paramount can lead to lost business opportunities and severely limited growth prospects.

Data Analytics: Unlocking Advanced Tracking Capabilities

As we delve deeper into the era of digital transformation, data analytics becomes an essential player – a strategic enabler in the freight rail industry. But what is data analytics exactly in this context?

Data analytics, in the most basic terms, involves the study of raw data to uncover meaningful trends, patterns, and insights. By focusing on the freight rail industry as an analytical framework, we can tailor these insights to bolster the efficiency and effectiveness of rail operations.

Let’s explore the direct applications and how they can augment traditional tracking and tracing methods:

Predictive Analytics

Data analytics is not solely about understanding the ‘now’; it’s also about anticipating the ‘next’. Predictive analytics, leveraging machine learning algorithms, can identify potential issues before they emerge, allowing rail operators to make proactive, not reactive, decisions. For instance, by examining historical data, predictive models can alert rail professionals about possible component failures, railcar availability, or impending traffic bottlenecks, allowing for preemptive maintenance planning and optimal allocation of resources.

Real-Time Monitoring

When it comes to rail freight tracking, time is literally money. And real-time data analytics is a game-changer in clock-bound operations. By analyzing data as it is generated, real-time analytics enables constant visibility into the location and status of each railcar, fostering quicker decisions and immediate responses. No more waiting for periodic updates – this real-time data-driven approach ensures consistent up-to-the-minute intelligence, significantly reducing the risk of delays and their associated costs.

Benefits of Using Data Analytics in Rail Tracking

By harnessing the power of data analytics, the rail freight industry can unlock remarkable gains in efficiency, visibility, and cost control. These benefits can revolutionize the way organizations manage their railcar tracking and tracing processes, ultimately improving overall business performance.

1. Improved Efficiency

Advanced analytics algorithms, when integrated into existing tracking systems, can markedly enhance the efficiency of rail freight operations. By analyzing vast data sets related to routes, schedules, and cargo details, these algorithms facilitate data-driven decision-making in several key areas:

• Optimized Route Planning: Machine learning-powered algorithms can analyze historical data and real-time situational factors, such as weather and traffic conditions, to design the most efficient route for each railcar. This results in minimized transit times, better resource utilization, and ultimately, increased productivity
• Bottleneck Detection: By identifying potential chokepoints in advance, data analytics empowers rail professionals to take proactive measures to prevent congestion in their rail networks. This circumvents disruptions to service quality and helps maintain continuous operations.

2. Enhanced Visibility

The utilization of data analytics in rail tracking offers unparalleled visibility into railcar movement, granting industry professionals an in-depth understanding of their assets’ status and location. Real-time monitoring of railcars provides several benefits:

• Timely Decision-Making: With continuous access to up-to-date information, rail professionals can stay agile in their decision-making, responding promptly to unforeseen events or concerns.
• Improved Stakeholder Communication: Enhanced transparency through real-time analytics eases communication with clients, suppliers, and other stakeholders, ultimately fostering well-informed collaboration and stronger relationships.

3. Cost Control

Strategic employment of data analytics in rail tracking has a direct impact on cost savings and returns on investment. By streamlining operations and mitigating risks, rail shippers can unlock tangible economic gains:

• Reduced Operational Costs: Identifying inefficiencies in rail operations helps lower overheads related to labor, fuel, and maintenance expenses.
• Enhanced Risk Management: Mitigating risks through proactive monitoring and predictive maintenance reduces the likelihood of costly accidents and delays, safeguarding a company’s financial position.

The transformative power of data analytics in railcar tracking and tracing is well-documented in numerous case studies, proving its potential to generate tangible results within the freight rail industry.

Not Required, But Essential: The Case for Voluntary Adoption of Data Analytics

Even though data analytics may not be mandated by legislation in rail freight operations, its adoption offers innumerable benefits that can revolutionize the way businesses manage their supply chains. Data analytics delivers actionable insights, aiding in critical decision-making processes, thereby improving operational performance and maintaining cost control. Early adopters of this technology gain a significant competitive edge, allowing them to optimize operational strategies and surpass their competition in this incredibly complex transportation mode.

Leveraging the potential of data analytics facilitates real-time visibility, predictive maintenance, and enhances asset utilization across the rail network. By translating raw data into meaningful interpretations, rail freight companies can make informed predictions about potential problems or bottlenecks and address them proactively before they elevate into more significant issues.

Rail Command^®: Your Partner in Efficient Rail Freight Tracking

At RSI Logistics, we empower organizations with pioneering software solutions engineered to harness the full potential of data analytics, refining the art and science of rail freight tracking. Our platform, Rail Command^®, features comprehensive functionalities including real-time tracking and highly accurate analytics, designed to cater to the dynamic needs of the modern rail industry.

We employ advanced algorithmic models to analyze data, providing dynamic reports and delivering actionable insights straight to your dashboard. Thus, Rail Command^® acts as your knowledgeable partner, offering valuable insights and solutions, enabling you to tackle challenges head-on, and improving your operational efficiency, fleet utilization, and overall cost control.

Beyond these options, Rail Command^® offers a suite of services tailored to your specific needs. From shipment visibility, route optimization to fleet maintenance, our software solutions provide the data-driven insights required to streamline operations and enhance profitability.

At RSI Logistics, we focus on more than just offering an outstanding product—we are committed to creating a productive partnership with our clients, helping you navigate the labyrinth of rail logistics with confidence and precision. Our goal is to revolutionize the rail freight industry, by transforming complexity into simplicity, and challenges into opportunities.

Data analytics presents a valuable opportunity for rail freight companies to advance their tracking and tracing capabilities, driving efficiency, visibility, and cost control. By adopting these advanced solutions and partnering with knowledgeable experts like RSI Logistics, shippers can ensure a profitable future in today’s ever-evolving rail space.

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One industry where data can make a huge difference is rail shipping. Rail transportation plays a crucial role in the global economy, serving as a vital link in supply chains and facilitating the movement of a variety of freight. However, many companies fail to recognize the wealth of information that is readily available within the rail industry and the potential benefits that can be gained from using it.

Whether it is optimizing freight shipping strategies, improving supply chain efficiency, enhancing safety measures, or leveraging advanced analytics, the insights that you can find from rail industry information can help your business grow, reduce costs, and improve your operations. In this blog we’ll help you find and recognize the wealth of information at your fingertips and how you can invest in the necessary resources and capabilities to unlock its full potential.

Gain Insight Into Market Data

If you’re a rail shipper, oftentimes you’ll have a limited view of the rest of the industry with no visibility beyond your own rail shipments. But that doesn’t have to be the case! Data does exist that can offer you visibility into the rail shipping market, data that can help you determine competitive positions and identify new growth opportunities. Much of this data comes from the Surface Transportation Board (STB), a United States government agency tasked with the economic regulation of freight rail. This organization collects data directly from the railroads and publishes it for access by anyone.

One of the STB reports, the Quarterly Commodity Statistics, provides both revenue and volume for each major railroad. This trend-based data gives a picture of the railroad’s market positions, which enables rail shippers to make comparisons to aid negotiation strategies. For example, if you’re working with a railroad that is falling behind its competitors, you may be able to approach them and gain better results on your shipping rates if they are eager to grow their business by undercutting their competitors and attracting your business. In addition, taking a look at how revenue-per-unit changes over time can be helpful when you negotiate for reduced rate increases on your business that is already shipping with the railroads.

Another STB report is the Public Use Waybill Sample, which obtains actual freight bill information (an invoice that details the various costs charged for moving your freight) and publishes it, although with some confidentiality protections. From this data, it’s possible to identify individual loads from other shippers. It’s also possible to use this data set to determine markets that are growing or in decline. This can help you better understand your position relative to your competitors and help you assess which new opportunities would be worth pursuing. This data can also provide information on specific competitors’ shipments and determine how often freight is shipped on contracts versus tariffs for a given commodity.

In addition, typical shipment patterns can be revealed, including equipment type, size, and lading weights. You might also want to determine how often Rule 11 rates are used since that rate structure can be advantageous in saving you money; if other shippers have used it for your route, you might be able to negotiate for that as well. For more information on the value of the Public Use Waybill Sample, check out our entire blog just about this database – Use the Waybill Sample Data to Grow Your Business.

Negotiate From an Informed Position

Historically, if you are a rail shipper, you have been mostly “in the dark” when it comes to rail rate information. Without insight into the railroads’ pricing structure or areas of leverage, many freight shippers have been unaware of whether the rates they pay are reasonable or not. Since rail pricing is unfortunately more complicated than just being based on distance, and can vary depending on the cargo, it is difficult to estimate what a rate should be for your shipment. However, if you can understand how the railroads price, you can hold some of the power when negotiating.

When negotiating, it is useful to develop a strategy that uses the information you have available to make sure you receive advantages. For instance, based on the data, you may determine it would be best to focus on decreasing costs on one specific route, rather than pushing for rate discounts on all your rates. Sometimes the data shows that controlling costs for your most expensive route is more important than smaller savings across the board. Starting the negotiation by telling the railroad the rate you need based on your previous analysis often leads to a lower final rate than if the railroad develops the number first.

If you are looking for other ways to control your rail shipping rates, check out 5 Tips for Effectively Negotiating Rail Freight Rates.

Save Time Locating and Accessing Information

While all companies want to save money, saving time can also contribute to your bottom line and improve your profitability. When tasks become more efficient and necessary information is obtained more quickly, you can focus on other activities that contribute to long-term success.

Those involved with setting up and executing rail shipments often need to determine rail station names, serving carriers, routes, and miles. Confirmation of STCC (Standard Transportation Commodity Codes) and equipment issues may be needed, as well as monthly fuel surcharges, railroad financials, storage and bulk transload locations, and Short Line information. Streamlining access to this valuable information can ensure that time is well spent, enabling your employees to be more productive.

This information can be often found in a variety of locations. The slowest method is to go to each individual railroad’s website and find the data there. However, there are many other sources of valuable rail information. Our Rail Impact® software provides access to the STB data, insight into rail pricing, and an extensive reference section where you can obtain rail information. In addition, there are other rail agencies that publish information regularly on their websites.

The post The Value of Rail Data appeared first on RSI Logistics.

More Waybill Sample Data Than Ever Before

This database provides traffic flow information throughout North America and gives cars, tons, and other relevant shipment information. The most currently available data is from 2021 and was released in January of 2023 with more data than ever before.

Historically, the railroads have been reporting at a 2.5% sampling rate (1 out of 40 freight bills) for manifest, or single-car shipments. The recent change in effect for the 2021 data increased the sampling rate to 20% (1 out of 5 freight bills). This is a significant increase, and it means that there is much more data for analysis in the most recently available data.

The Real Value of the Waybill Sample Data

To best understand the value of the data, it’s important to recognize what information is genuine, and which may be “masked”, or hidden, to protect confidentiality. Actual information includes the commodity at a Standard Transportation Commodity Code (a five-digit numeric code representing 38 commodity groupings) level, the miles shipped, the equipment type and owner, as well as the shipment size and the lading weight.

To protect shipper and receiver confidentiality, Station Names are not provided; rather they are grouped into Business Economic Areas (BEAs), which are relevant regional markets surrounding metropolitan or micropolitan statistical areas. In addition, Railroad names are not provided, but the number of railroads in the given movement is specified. One of the most critical pieces of information that may not be actual is Revenue, which may be hidden to protect the confidentiality of privately negotiated contract rates.

According to the 2019 Surface Transportation Board Carload Waybill Sample Reference Guide published on December 23, 2020, by Railinc:

“Railroads are permitted to “mask” contract revenue with a calculated figure. Since these figures may not represent actual revenue, use of this revenue data in any type of comparison may lead to wrong or misleading results.”

Using the Waybill Sample Data

Despite the confidentiality protections mentioned above, the Waybill Sample can still be a valuable resource. The masked data is only part of the data, and insights that are practical and valuable can be pulled from the Waybill Sample.

Three of the foremost of these insights are:

1 – Market Intelligence

An entire market or specific lane can be analyzed.

From the BEAs and miles shown, it is often possible to figure out the actual movement for that waybill. Some of the insight that can be obtained includes how prevalent contracts are for your commodity, how widespread Rule 11 rates are, and where the largest traffic flows exist.

Contracts are agreements between buyers and sellers that establish prices, quantities, and delivery dates for a specific commodity. By analyzing BEAs and distances, your business can gain insights into how widespread contract usage is within a given region. This knowledge can inform decisions related to pricing, marketing, and supply chain optimization.

Another important insight that can be obtained by analyzing BEAs and distances is the prevalence of Rule 11 rates. Rule 11 is an accounting rule allowing carriers to separately set and publish their own shipping rates and then separately bill the customer. By understanding the prevalence of Rule 11 rates, shippers can better understand their costs by carrier, utilize various routing alternatives, and negotiate separately with each rail carrier.

In addition to contract usage and Rule 11 rates, analyzing BEAs and distances can also reveal where the largest traffic flows exist. This information can help your business identify key transportation hubs and optimize supply chain processes to take advantage of these flows. For example, if a large volume of goods is moving between two specific BEAs, businesses may consider locating warehouses or distribution centers in those areas to streamline their operations and reduce transportation costs.

2 – Competitor Analysis

Comparisons can be made to others.

Using the data, you may determine specifics of how others ship your commodity. For example, are they using the same type of equipment, do they ship in private rather than rail equipment, or are they loading their cars heavier which may result in rate advantages.

Analyzing data related to how others ship your commodity can provide valuable insights that can help improve your own shipping practices and profitability. For instance, by studying the types of equipment used by other shippers, you can determine if they are using the same equipment as you or if there are alternative options that may be more efficient or cost-effective. This knowledge can inform decisions related to purchasing or leasing equipment, as well as optimizing loading and unloading processes.

Another important aspect to consider is whether other shippers are using private equipment or rail equipment to transport your commodity. Private equipment refers to railcars owned or leased by the shipper. If other shippers are using private equipment, it may indicate that there are cost advantages to this method, which could be worth exploring for your own shipping needs. Alternatively, if rail carrier owned equipment is being used, it may be necessary to consider the associated costs.

Furthermore, analyzing the weight of the cargo being shipped by other shippers can reveal potential advantages. Maximizing loading and shipping heavier loads may contribute to annual rail freight savings. This knowledge can inform decisions related to how much to load onto each railcar.

Overall, analyzing data related to how others ship your commodity can provide valuable insights that can inform decisions related to equipment, transportation methods, and pricing. By identifying best practices and areas for improvement, you can optimize your shipping processes and improve profitability.

3 – New Opportunities

Market opportunities can be identified.

By seeing historic traffic flows, you may find a market area where you have little or no presence and want to explore those areas for market share growth.

Studying historic traffic flows can provide valuable insights into consumer behavior and preferences. By analyzing traffic patterns, businesses can identify areas where they have little or no presence and target those regions for potential market share growth. This could involve expanding your physical footprint by opening new locations or increasing your online presence through targeted marketing campaigns. Additionally, examining traffic flows can reveal trends in consumer demographics, such as age, income, and education level, which can inform marketing strategies and help businesses tailor their offerings to better meet the needs and preferences of potential customers. Using the Waybill Sample historic traffic flows is an important tool you can use to break into new market areas, improve your market share, and reach new customers.

The data provided in the Public Use Waybill Sample can be analyzed in many ways. Here at RSI we incorporate this information into four user-friendly reports for further analysis in our rail rate application, Rail Impact®.

Don’t miss out on the opportunity to optimize your rail transportation strategies with Rail Impact®. Sign up for one of our free online webinars today and discover how our tool can help you leverage the data from the Waybill Sample to make informed decisions and improve your bottom line.

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In this blog post, we will explore the top five clichés about rail logistics that you should avoid. By dispelling these misconceptions, we hope to provide a more accurate and nuanced understanding of the rail logistics industry, its challenges, and its potential for the future. Whether you are a logistics professional or simply interested in the transportation industry, this post will provide valuable insights and help you avoid common pitfalls.

1. Accept Demurrage Charges Blindly
2. Forgetting about Transloading
3. You’re Stuck with the Routes You’re Given
4. Industry Metrics Doesn’t Matter
5. Not Paying Attention to Industry News

1 – Accept Demurrage Charges Blindly

Demurrage is a charge that rail carriers levy when railcars sit in a location for an extended period while waiting for placement. This fee was designed to encourage efficient use of railcars on the network so that traffic flows smoothly and railcars don’t sit and create railcar jams; the more shippers are encouraged to keep cars moving, the more open rail serving yards can be. In theory.

In practice, since rail shipping can be unpredictable, movement of cars can be unpredictable, which means demurrage charges can be unpredictable. While the reasoning behind demurrage charges is solid, receiving the fees can be problematic for budgeting. Since the fee is charged for a railcar not moving, it is a loss of money on top of the loss of revenue from the lack of the railcar moving.

The solution seems obvious – budget for demurrage! However, that is easier said than done, as modern demurrage calculations can be convoluted. As a result, many rail shippers see the charges and just accept them. It’s difficult to budget for them or understand the formula, so it becomes a charge that is begrudgingly accepted without working through to see if the charges are correct or not.

Make Efforts to Increase Demurrage

Avoid the cliché of accepting demurrage charges blindly by taking proactive steps to lower demurrage from the get-go, and dispute unfair demurrage charges.

Strategies to reduce demurrage proactively include:

• Improve the flow of your cars – Improve the management and flow of your cars and align them with your facilities’ capacity.
• Know the tariff rules – Know the railroads’ rules and your options.
• Keep proper records – Maintain proper records, including daily rail orders and switching.
• Analyze and find alternative solutions – Track the root cause and find alternative solutions.

For more information on proactively taking steps to reduce demurrage, read our Strategies to Reduce Demurrage blog.

If you see that you have discrepancy(s) in your demurrage charges, you can dispute those by submitting a case on the railroad’s websites. Disputing demurrage can be difficult, the critical part is to make sure you have the proof to back up your claims. For instance, if you are charged with demurrage for a missed switch that was the railroad’s fault and not yours, having the missed switch records will help you when you open a dispute with the railroad.

2 – Forgetting About Transloading

Transloading is a method of moving goods from one mode of transportation to another using various equipment at a bulk terminal facility. Usually, this involves taking goods from a railcar and transferring them to a truck or transferring them from a truck to a railcar. This can be done with various goods, including perishables and non-perishables, dry and liquid bulk, chemicals, and more.

It is easy to focus on just using one mode of transportation when shipping; it is less to focus on and seems more streamlined. Instead of trying to transfer goods between rail and truck, it seems much simpler to simply find somewhere connected directly to rail or put it on a truck the whole way. However, transloading provides a wealth of new opportunities and is not any more difficult to understand and implement than other aspects of shipping.

If You’re Not Utilizing Transloading, Consider It

Using different modes of transportation allows you to potentially lower transit costs. Rail shipping is one of the most cost-effective modes of shipping over long distances, but it is somewhat inflexible. Trucking is incredibly flexible but is much more expensive over long distances. But when the two are combined, you can save money by shipping by rail most of the distance, then transloading to truck to be flexible enough to reach nearby locations.

This also means that your supply chain network can be flexible enough to ship practically anywhere, opening up new opportunities. Transloading bulk terminals are located across the United States and Canada; our transloading map can help you search for transloading locations near where you need them.

3 – You’re Stuck with the Routes You’re Given

One major challenge all rail shippers will eventually face is the lack of flexibility in rail shipping. Due to the rigid aspects of rail, new routes do not develop often, and it can be tempting to see it as an impossible task. It can also be comfortable to just stick with the route you know and have used repeatedly.

The difficulty in just assuming you are stuck with the routes you are given is that sometimes rail lanes are captive, meaning that that lane does not have any competition against other railroads. This lack of competition is bad for you, since it often results in the railroad having little incentive to compete with their costs or service.

Alternative Rail Routes

If you are using the same route repeatedly and find that it is time for a change, consider seeking alternative rail routes to mitigate the problems you are having. Some shippers do not consider finding an alternative route because they either do not realize they can, or do not know how to begin.

We suggest utilizing data and talking to experts to get started. Rail rates, shipping costs, mapping tools, and other data can show you where you can make changes in routes and help you make smart decisions. And if you find yourself stuck, talking to rail experts like those here at RSI Logistics can help you work through the issue with an experienced rail logistics provider. If you need help, don’t hesitate to reach out; we thrive on helping rail shippers overcome challenges.

4 – Rail Industry Metrics Don’t Matter

This is a cliché not just for the rail industry and rail shipping, but for all businesses in their respective industries. With everything going on in your business, it is easy to overlook insights, metrics, and raw data from the industry. Macroeconomics don’t seem to have as much of an impact as microeconomics. That, or we’ve resigned ourselves to the concept that what happens in the bigger industry is beyond our control and not worth the time to pay attention to. It can be overwhelming, trying to comprehend the vast amount of data that comes from the rail industry and how it can impact you.

While it is true that the results of the metrics you look at from the rail industry are out of your control, that does not mean your response is. And while it is true that the data from the industry is vast and sometimes difficult to comprehend, there are tools out there to provide tailor made insights for you.

It does take time and effort to find data and insights on the rail industry, but putting in that effort can provide rewarding results for your organization.

Study the Rail Shipping Data

Studying rail industry data in its raw form, often from large organizations such as the Surface Transportation Board or The Association of American Railroads, can make it difficult to find helpful insights for your industry amongst the sea of data. That’s why we recommend deciding ahead of time what metrics you need to focus on for your business and finding somewhere where those metrics are easily translated into insights.

For instance, if your shipping varies seasonally, it is helpful to have an idea of what rail performance trends look like for the major railroads during the seasons you ship more and less. If you can see the railroad’s performance trends, it can help you see ahead of time if you will be struggling with a lack of railcars, working through slower performance and more crowded lanes, or if you can expect more to go smoothly. Tools like Rail Info can provide this information to you in comprehensive dashboards and graphs so you don’t have to dig through the raw data for yourself.

5 – Not Paying Attention to Industry News

Similarly to our cliché above, it can be easy as a rail shipper to not pay close attention to rail industry news. After all, if there is a problem with the route you are shipping on, you’ll hear about it when it impacts your shipments, right?

Although it can be a lot of work to pay attention to short- and long-term updates from the rail industry, it truly does matter. Pay attention to short-term challenges, such as major weather events or issues with strikes and derailments, to anticipate repercussions on your shipping. Since the rail networks are so interconnected, even if an issue with the railroads does not directly impact your lanes, it can ripple outward to cause issues regardless. And long-term challenges, such as changes to laws or railroad mergers and operating changes, can have an impact on your rail shipping in the future. If you must adjust how you ship on rail to accommodate for these changes, the earlier you are aware, the more you can be prepared.

Keep an Eye on Rail Industry Weather, News, and General Updates

Don’t be caught unprepared by the changes in the rail industry, whether those changes take place in hours or over the years. There are a variety of methods to keep an eye on the rail industry.

For local issues that can impact your shipping, we recommend signing up for alerts from the railroads. Most railroad websites give you the option to sign up for email notifications if their networks are affected or have the possibility of being affected.

For the longer issues, we recommend something similar; find where the news is collated into one location so you can get it all in one place. Often, this means going to the source, such as the Surface Transportation Board. It can also mean looking into comprehensive sources of news, such as prominent publications like Progressive Railroading.

Rail logistics is a complex and ever-evolving industry that is essential to the economy. Unfortunately, there are several clichés about rail logistics that persist, which can lead to misunderstandings and missed opportunities. By avoiding the five clichés we discussed – blindly accepting demurrage charges, forgetting about transloading, assuming you’re stuck with given routes, ignoring industry metrics, and neglecting industry news – you can stay ahead of the curve and find greater success in your rail shipping supply chain.

It is essential to stay up to date with industry news, understand the importance of metrics, and explore all available options for moving goods efficiently. By doing so, you can take advantage of the latest innovations and emerging trends to streamline your logistics operations, reduce costs, and improve customer experience. In short, avoiding these clichés is critical to achieving success in the rail logistics industry, and we hope this blog post has helped you gain a deeper understanding of the industry and its potential for the future.

The post 5 Clichés About Rail Logistics You Should Avoid appeared first on RSI Logistics.

But with so much information out there, how do you know where to start and which insights can be the most helpful? Let’s take a look at seven of the most important rail shipping insights to pay attention to.

Rates and Fuel Surcharge

Fuel Costs, tariff rates, and fuel surcharge data can provide important insights into a key piece of rail shipping industry: costs.

Charges like Fuel Surcharge, Public Tariff Rates, and Private Contract Rates are levied by the railroads to compensate the railroads for the costs they incur while moving North American rail traffic. By monitoring changing fuel cost, public tariffs, private rate contracts, and imposed fuel surcharges rates, you gain valuable insight into your costs for shipping by rail.

Fuel History and Costs

Our Fuel History dashboard displays average quarterly fuel costs for each Class I railroad. This information is disclosed by the Class I railroads in their quarterly financial releases. Included in this data is a timeline of the average fuel price, details of the fuel price from each railroad by quarter, and a comparison of the quarterly change compared to the previous quarter.

By looking at Fuel History, you can see trends in fuel prices and be prepared for potential increases in rail rates and fuel surcharges. Rising costs in fuel normally translate to rising shipping costs, in rail and other modes of transportation. So, if you see fuel costs rising, that normally means rising costs elsewhere. In this view, you are also able to compare the railroad’s reported fuel costs to the U.S. Energy Information Administration’s (EIA) fuel cost history and forecast.

Fuel Surcharge Trends

Fuel Surcharge is a tool that was designed for railroads to recover the cost of fuel that is consumed when moving railcars. To learn more about Fuel Surcharge, check out our What is Fuel Surcharge and Why is it Important blog.

Following Fuel Surcharge trends are a valuable way gain insight into the direction of fuel costs that are reflected onto the shipper. As fuel costs go up, the railroads tend to charge more to cover rising costs, which in turn pushes shipping costs higher.

Rail carrier fuel surcharge rates are indexed to the 2 months prior price of West Texas Intermediate Crude (WTI) or the On-Highway Diesel Fuel Price (U.S. Monthly Average) (HDF). The rates below are in U.S. dollars.

Tariff Change History

One aspect of rail that is like truck is the freight rate process. In rail, your volume may impact the overall rate you are given by the railroads. If you are not able to negotiate private freight rates, you will have to ship on a railroad’s public rate, also known as tariff rates.

We monitor numerous public tariffs and tracks changes. This is represented here in our Tariff Change Summary dashboard. Paying attention to historical Tariff changes may help you to prepare for future charges.

Not only can you see historical changes in tariff rates, you can also get an understanding of tariffs set to expire in the next 30, 30-60, and 60-90 days. This information helps you plan for upcoming changes and proactively manage your rate database.

Railroad Performance

The performance of the major Class I railroads (BNSF, CN, CP, CSX, NS, KCS, and UP) are excellent indicators for the overall health of the industry. Since these railroads collect and issue a lot of data on a regular basis, it is easy to gather information. Unfortunately, there is so much data that finding insights in the massive number of numbers can be a challenge.

However, when you can untangle the data, there are plenty of helpful insights that can show trends in the rail shipping industry. Here are a few primary data points to help you understand how the rail network is performing.

Cars Held

Cars held is the average number of railcars on the Class I railroads that have not moved in 48 hours or more. This information is useful in figuring out which railroads are affected by service issues, when you might expect longer holding times, and how you might predict or plan for these events.

Monitoring railroad tracking data for the frequency of cars held by each carrier allows you to quickly find carriers experiencing service issues, and those that are making improvements. Some months or quarters may see a spike in railcars held for certain railroads, while others may see gradual increases, decreases, or relatively steady advancement.

Trains Delayed

The Trains Delayed Report shows, as a weekly average, the daily number of loaded and empty trains held short of destination or scheduled interchange for longer than six consecutive hours.

This information can help you anticipate delays from railroads and potentially adjust your schedule or route accordingly. If you are experiencing more delays than expected, you can also use the Trains Delayed Report to measure your delays against the average for each rail carrier.

The weekly average of trains delayed can provide helpful insights into a railroad’s performance. This data can also show you when you might expect more delays, especially when working with specific carriers. With the Trains Delayed Report, you can check railroad performance data and predict where your transit times might be affected. You can also compare the performance of different rail carriers, which is particularly helpful when you have routing options. It is also helpful to compare rail carriers across different time periods and see when delays affect specific railroads and to what extent.

Velocity and Yard Dwell

Velocity is the speed of a train from origination to destination, including the amount of time a train dwells in a yard for a crew change, pick-up or set-off of traffic.

The Yard Dwell Time Report is a measure of the weekly average terminal dwell time, measured in hours, for the 10 largest terminals for each carrier. This information can help in figuring out the efficiency of each terminal and give you reliable information for planning rail routes.

Velocity and Dwell combined are important indicators of a network’s health. When Velocity is up and Dwell is down, it shows the network is performing well because the trains are able to run quickly and move railcars efficiently.

Cars Online

The Weekly Cars Online Report shows the total amount of cars online by North American Class I Railroads, with a historical perspective. You can use this information to watch the historical trends in railcar volumes.

There are many instances where it may be useful for shippers to analyze and compare operational car data by railroad over time. For instance, this data, as well as other data points, can be a sign of how a carrier is performing, or if there are times of the year where cars are offline or online. This can help inform your shipping and logistical planning decisions.

Rail data is crucial to helping you improve the efficiency of shipping by rail. Data points such as Rail Rates /Fuel Surcharge, and Railroad Performance are two crucial measures to help you understand current and historical trends within the North American rail network.

While these data points are vital, they may not be easily accessible and consumable. However, our goal is to offer more resources to help you find bulk transloading options, storage locations, Shortline details, Serving Carrier Reciprocal details, and more, all from a central location, known as Rail Info.

To learn more about the featured graphs, as well as additional resources we offer in our Rail Info tool, check out Rail Info here.

Or if you need applications and services to help you improve your rail transportation, check out our Rail Solutions here.

The post 7 Rail Shipping Insights to Pay Attention to appeared first on RSI Logistics.

Whether you’re planning out your rail supply chain and organization, working on a consultation project for a railroad, or studying the rail industry as a piece of the overall economy, data allows you to make informed decisions. Without data to help you make decisions based on indisputable evidence, you’re in danger of taking actions based on incorrect conclusions.

For instance, suppose you’re a rail logistics professional who needs to develop a budget for the year. Part of your budget preparation includes planning for demurrage. Without data, you’re relying on your own experience, which can be biased. However, with data, you can see the trends that demurrage charges take, and more accurately predict what your charges might look like next year.

In this post, we’ll provide five examples of places you can find rail data and, just as importantly, insights

Why are Data Insights Important?

Collecting rail data can sometimes be a difficult task. The data about the overall industry is sometimes broken up amongst the different railroads and government organizations. Sharing isn’t always a priority for these organizations, and when sharing does happen, it rarely is in a format that is easy to pull insights from. Much of the data is downloadable via long lists of the raw numbers.

Data needs to be analyzed so that you can pull actionable insights from them. Without insights that can be easily analyzed and applied, the raw data is just numbers. Figuring out how to decipher the data is just as important as finding good, trustworthy sources for data.

Resources for Rail Industry Data

Although there are many places to find rail industry data and the accompanying insights, some places are more effective than others! Below we’ll look at the five places you can find trustworthy data from and see which of these places help you find insights from the numbers.

Surface Transportation Board

The Surface Transportation Board (STB) is a federal agency that is charged with the economic regulation of freight rail, as well as other modes of surface transportation. The STB collects a significant amount of data and posts it to their website in their Reports and Data section. The topics that the STB’s data covers are extensive, including economic data, rail service data, demurrage and accessorial charges, and more. Since it is a federal agency, the STB gathers this information directly from the railroads and Railinc, meaning that you can be guaranteed the data is accurate.

Unfortunately, the STB’s data is released in difficult to understand lists of raw data. Pulling insights from the data requires knowledge and experience to find the raw data you need, then manipulate it to pull actionable information. For example, every week the STB releases information on railroad performance by systems and commodities, but this data is released in a list format of numbers each week, so to compare how a commodity has been doing for the last few years, you would have to take each week’s data, isolate it, and compare it outside of the list.

Rail Carrier’s Websites

Each of the Class I carriers (BNSF, CN, CP, CSX, KCS, NS, and the UP) release data about themselves on their website, primarily financial information. Since these carriers provide the vast bulk of rail transportation in North America, the data they make available can be used to get a great look at the overall health of the rail shipping industry, which itself is a big piece of the overall economy.

However, the rail carriers only release information about themselves on their websites, meaning that if you want to compare you must go to each of their sites and collect the data before you can put it together. Furthermore, since they primarily only release financial information, that makes it effective only for insights regarding business data.

The Association of American Railroads

The Association of American Railroads (AAR) is an industry trade group that represents mostly the Class I major freight railroads of North America, which are the seven we listed above. Similarly to the STB, the AAR collects data from the major railroads and makes it available in their Data Center. The AAR Data Center gathers information on finances, operations, performance, traffic, and more.

Much like the STB, this information is mostly available as static documents and lists, requiring you to do the work to pull insights. However, unlike the STB, the AAR Data Center does have a few visual charts and dashboards. Some of them can be manipulated while others are fixed. Unfortunately, the AAR’s Data Center only releases some data for free, and the rest is locked behind a paywall.

RailPrime

RailPrime is an information source from Progressive Railroading. This article-based subscription focuses on key trends, special reports, industry news, and other material concerning the rail industry. While the AAR Data Center and the STB’s information are raw lists of data, RailPrime’s data and insights are released through write-ups and are mostly concerned with trend-tracking information and news releases.

Although most of RailPrime is not concerned with raw data, rather news and trends, they do have a section called Prime Numbers, which is a bi-weekly article that goes through data trends in the freight transportation industry in a written format. If you like your data conclusions written out for you, RailPrime is your go to; however, for those who want to study the data to reach their own conclusions and insights, this can make it difficult to do so.

Rail Info

Rail Info is our data analysis tool that we created to import data from some of the above sources and easily provide insights. We designed comprehensive dashboards to visualize the data; these custom dashboards make your analytics journey more streamlined!

We break down the data into topics such as Fuel Surcharge rates, Transloading Terminal directories, Delay reports, and more. This allows you to have the same data, as well as additional data, from the STB and AAR; however, with Rail Info the insights are ready to go for you. Our dashboards are built by railroad professionals who have experience in knowing what data to look for from the raw data, so we design the dashboards around both the data and the insights you’re looking for.

Data is an important aspect of studying the rail shipping industry and is important to make unbiased decisions. However, data is only as important as the insights that you can pull from the numbers. As a result, it is important to find places where you can collect data and easily pull insights from the data. Although there are a few places where rail industry information can be collected, most of them are focused on either the raw numbers or the resulting trends, not both.

Rail Info is our solution to this problem and offers both a good look at the data and the ability to easily find insights in our custom dashboards. Click here to check out Rail Info and get the first month free!

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