If you’re a freight shipper of any kind, it’s likely that at some point in your supply chain, your goods will transfer from one mode of transportation to another. For instance, if you ship by rail across the continent, but switch en route to truck for the last several miles, you have switched modes. This is referred to as transloading.

Rail transload facilities play a crucial role in shipping networks of many companies, allowing them to reap the benefits of both rail and truck transportation. When selecting a rail transload facility, you may have more options than you think. If this is your first time scouting transloading facilities, the amount of options could seem overwhelming. Or, perhaps you’ve used the same transload facilities for some time, and you’re wondering about exploring other opportunities. Alternatively, you may be reevaluating your shipping strategies to accommodate new receivers, new products, or to address recent rate hikes.

Whatever the reason for your research into rail transload facilities, there are several key factors to consider that can help you choose the best rail transload facility for your logistics. Let’s take a look at the background of rail-to-truck transloading, and the important factors involved in selecting a rail transload facility.

Background of Rail-to-Truck Transfer Terminal

Rail transload facilities have not always existed. While North American railroads expanded significantly in the middle and late 19th century, and trucking was popularized in the early 20th century, these two modes didn’t meet until the 1960’s with the pressure differential covered hopper.

In the 1960’s railroads had lost business to the trucking industry thanks to the advanced interstate highway system. In response to this, ACF Industries utilized pressure differential technology to develop the “Flexi-Flo” Hopper. The pressure differential covered hopper, or Flexi-Flo Hopper, utilized applied air pressure to the contents of the inside of the car (typically dry bulk goods) to more easily transport the contents from tank car to truck load or storage tank. In turn this revolutionized the rail industry, bringing back some of the business it had lost to the trucking industry. It also empowered shippers to more efficiently use both truck and rail shipping options to the very best of each method’s unique abilities.

Today, transload terminals offer these same benefits, with a wide range of locations operated by major railroads, shortline railroads, and other logistics businesses. Sometimes choosing the right transloading facility can be straightforward, especially when there are limited options. However, in situations where multiple choices are available, selecting the right facility is important to find lower rail rates, optimized truck and rail routes, and an improved guarantee of goods reaching their destination on time.

Selecting a Rail Transload Facility

Choosing the right rail transload facility generally involves three major factors; distance to receivers, rail lines available, and the transloading facilities equipment. Gathering necessary information about each of these factors can help you balance them, and choose a rail transload facility with maximum benefits.

Distance to Receivers

Combining rail and truck transportation using a transload facility gives you the cost-saving benefits of multimodal shipping. When comparing costs per ton mile by truck and rail, rail has the potential to cut costs in half. This means minimizing transportation by truck can dramatically reduce costs. With that in mind, it’s important to choose a transloading facility as close as possible to your receivers. However, it’s also important to consider volume in this equation. Bulk transloading can help you significantly increase efficiency and cost-savings, while improving flexibility and adaptability through your shipping operations.

A good rule of thumb is to choose a transloading facility as close as possible to your primary receiver, as this normally yields the lowest cost.  However, if a transloading facility closest to your primary receiver brings you much farther away from your other receivers, more detailed calculations may be needed.

Serving Rail Carriers

Many transloading facilities are served by a single rail line. These facilities give shippers few options, and this makes many shippers subject to captive rates. Other transload facilities give shippers access to more than one line-haul rail carrier, and with more than one carrier, competition often results in higher negotiating power for the shipper. In some cases, it may be economical to move to a farther transloading facility if it is possible to negotiate competitive rail rates. Even having this option can help in negotiating alternative pricing with your existing rail carrier.

As you consider transloading facilities in your area, take a closer look at rail carriers available. A relatively minor route shift can give you access to other rail carriers and more competitive rates, especially in congested areas. These alternative routes, as well as benchmark data about your current routes and rates, can give you more leverage to effectively negotiate with your carrier.

Transloading Facility Materials and Equipment

Bulk transfer terminals typically accommodate various dry and liquid commodities such as plastics, chemicals, fuels, food-grade products, minerals, aggregates, lumber and municipal waste. Safely and efficiently moving these materials to and from rail cars and trucks requires specialized equipment. It is important to ensure that your transloading facility can accommodate the products you’re shipping, especially when working with hazardous materials.

Consider the materials or items you’re working with, and the types of equipment required to safely move them from one mode to another. Transload facilities may use the following to move materials on-site:

• Mechanical conveyance or lifting equipment: This might include conveyor belts or other methods like forklifts or cranes.
• Pumps: Many different types of pumps, such as those designed for flammable liquids or acids, may be used, depending on the materials.
• Pneumatic conveyance: Pneumatic conveyance minimizing dust and spillage when transporting many plastics and powders.
• Steam boiler: Materials that require reheating in order to transport may require a steam boiler.
• Spill containment: Caustic or otherwise hazardous materials require spill containment procedures and barriers.

Some transload facilities specialize in certain materials. Though it isn’t common, these facilities may refuse shipments that pose particular risks to other shipments. For example, transloading facilities may refuse explosive or radioactive materials due to a high level of liability and risk to other shipments. In these cases, alternative shipping methods will be required.

How to Select a Rail Transload Facility

Finding the right rail transload facility can be a challenge, especially if you’re willing to adjust your current route in order to avoid captive lanes. To select a rail transload facility and decide if transloading is helpful for your situation, it’s first helpful to look at benchmark data and assess your current rates. See how they compare to others in your industry. This can show you where it may be most lucrative to consider transloading and alternative routes. Use the transloading facility map to take a closer look at the transloading facilities available to you, as well as the equipment available at each location. When you find a facility that works for you, contact the facility manager to get more information. Or, take a look at our transload facilities to determine which best suit your materials and routes.

Selecting the right transloading facility is an essential component to a cost-effective overall bulk terminal strategy. This can help you negotiate more competitive rail rates, get closer to your largest receivers, and protect your shipments with top-quality equipment and safety measures.

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Finding the optimal shipping modes and routes can help you reduce shipping costs substantially and improve the efficiency of your supply chain. Rail and truck are the most common shipping modes across land. However, finding which shipping type is right for your materials and your business can be a challenge. Let’s take a look at the advantages and disadvantages of rail vs truck shipping to see which one is best for you. We’ve updated this blog post in 2024 to help you research the advantages of rail shipping vs truck shipping more easily.

The Advantages of Rail vs Truck Shipping

Cost: Advantage for Rail Shipping

When it comes to cost, rail transportation has the advantage. Rail shipping is much more cost-effective than truck shipping for several reasons. Rail is a much more fuel-efficient mode of transportation. Railcars can also carry much more volume than trucks. The below information is gathered from the Association of American Railroads.

About 83 million more trucks would be needed to move freight in the United States if railroads did not move freight. Trucks also require about four times more fuel than rail to handle the freight shipping needs that Americans rely on everyday.

Environmental Impact: Advantage to Rail

Businesses and consumers are both increasingly prioritizing a strong environmental stance. Rail transit, compared to trucking, can significantly reduce the energy costs, carbon emissions, and pollution associated with transit.

• 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.
• In the US, 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. 
• Businesses that seek to change their supply chain in favor of sustainability are looking at rail as an eco-friendly transportation mode. On average, rail is four times more fuel efficient than trucks.
• Rail emits 75% fewer GHG emissions than truck shipping

This fuel-efficiency can also help to reduce transportation costs significantly, while also reducing environmental impacts. When it comes to environmental impacts of rail vs truck, rail easily wins out.

Speed: Advantage to Trucking

When comparing the speed of rail vs trucking shipping, the advantage goes to trucking. Extensive highways allow trucks to (usually) follow a shorter path between two points and deliver their cargo faster. Trucks are also generally easier to load and unload. However, the speed advantage of trucking over rail starts to fade over longer distances.

Railroads utilize a network of track that includes large rail yards, which are a series of tracks for sorting, storing loading, and unloading of railcars. These vast yards are filled with railcars waiting for their next move, and these delays often mean rail is not as fast of a freight delivery mode when compared to trucking.

Railcars also experience dwell time on a weekly basis. Dwell time refers to the amount of time a railcar spends waiting at a terminal to move to its next destination.

According to the RSI Industry Yard Dwell report for the week of February 28th, 2024, railcars experience an average of 22.8 hours in weekly dwell time.

Flexibility: Advantage to Trucking

Flexibility is the main advantage of trucking. While railcars must travel along fixed rail routes, trucks have access to a much wider range of roads and highways. This means that trucks are capable of accessing many more loading and unloading points across the nation. Trucks can also find a direct path more easily, while railcars may have to divert around some areas where rail infrastructure isn’t available.

Safety: Advantage for Rail

When comparing the safety of rail vs truck transportation, rail has the advantage. Since rail shipments operate on fixed, monitored routes, compared to the often hectic traffic of highways, rail incidents are much less common.

• Rail freight transportation incurs 1/8 of the fatalities and 1/16th of the injuries that trucks experience per ton-mile. (SteelInterstate.org)
• Railroads safely deliver 99.998 percent of all rail cars containing hazardous materials. (SteelInterstate.org)
• Truck-related hazardous materials incidents caused over 16 times more fatalities from 1975 to 2021 – 380 for truck, compared with 23 for rail (PBS.org)
• Large truck accidents increased 26% from 2020 – 2021 (Forbes Advisor)
• There were 523,796 large truck accidents in 2021 (Forbes Advisor)

Railcars are also less likely to suffer from theft since they are secured and there are fewer opportunities during travel. When railcars are not actively moving, they are positioned in a rail yard that has 24/7 security. When transporting potentially dangerous chemicals, the safety checks and security measures around railcars help to improve safety even further.

Rail shipping has a number of advantages over trucking that can be easy to overlook. Transloading gives shippers the opportunity to take advantage of both rail and trucking. With transloading, shippers can use trucking to increase speed and travel flexibility while taking advantage of the cost-savings, stability, and safety of rail shipping over longer routes.

To learn more about railcar tracking and management, take a look at Rail Command or contact our experts. You can also read our blogs; Comparing the Cost of Rail Shipping vs Truck Shipping and Green Rail: Is Rail Better for the Environment than Trucks? For more information on rail shipping vs truck shipping.

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Comparing Modes of Transportation

Where pipelines and waterways are available, shipping via these modes can significantly reduce costs. However, these two options are limited by infrastructure and geography. Rail and truck however provide more versatile shipping options, especially when combined in multimodal transport. Comparing costs per ton-mile of each mode, you can see the advantages of each. Though these differences are small at first, cost savings add up quickly over longer distances and volume.

Trucking is the universal mode of transportation; every shipper can load and receive materials by truck. Rail, on the other hand, requires that both the shipper and consignee have the ability to load and unload rail directly. By comparison, the differential in cost between the two modes is $ 0.105 per ton-mile. Reducing truck transit and choosing the optimal rail transload facility will help to maximize cost-savings through rail.

Comparing Truck vs Rail Shipping: Example

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 four truck loads.

Utilizing Multi-Modal Shipping

Many shippers understand the savings potential in shipping rail versus truck, but, in many cases, receivers may only be able to receive material by truck. To take advantage of the economies of long-haul rail transportation and the speed and flexibility of local truck delivery, shippers rely on North America’s extensive bulk terminal network.

Many shippers understand the savings potential in shipping rail versus truck, but, in many cases, receivers may only be able to receive material by truck. To take advantage of the economies of long-haul rail transportation and the speed and flexibility of local truck delivery, shippers rely on North America’s extensive bulk terminal network. The cost to combine rail and truck using a bulk transfer terminal is approximately $95.54 per net ton. By comparison, rail direct is $70.27 per net ton, and over-the-road truck is $214.96 per net ton. Using multi-modal rail and truck transit compared to truck alone, you can cut transportation costs by more than half.

Railcar Equipment Costs

In addition to transit costs, it is also important to consider the cost of railcar equipment when using rail or multi-modal transit. This equipment cost adds about $900 per railcar shipment. However, these costs only slightly increase variable costs per net ton. Using multi-modal transit, the cost per net ton increases to $105.01. Compared to over-the-road trucking’s $214.96 per net ton, the savings for multi-modal transport remains significant.

Comparing Additional Costs

When comparing the costs of rail shipping vs truck, it’s also important to consider additional costs that might not be on your balance sheet. For example, the stability of rail networks can give shippers and customers more confidence, and make it easier to make long-term plans. By contrast, driver shortages, gas prices, weather events, and other issues can affect the prices and timelines for truck shipping. It’s also important to consider the environmental costs of each mode. Since railcars can ship a much greater volume of goods, railcars can reduce total carbon emissions substantially. In general, since rail cars and rail yards are monitored 24/7, rail cars are also a safer way to ship goods, and can help to reduce losses to theft or damage.

The easiest or most direct shipping route is not always the most efficient, nor the most cost-effective. You can take advantage of cost-savings via rail shipping even when receivers are not located directly on rail routes. Use multi-modal strategies to reduce shipping costs, and assess your transloading facilities carefully to optimize cost-savings. With this strategy, you can keep your shipments on-time and on-schedule, while dramatically reducing costs. Want to learn more about the differences between rail and truck shipping? Check out our blog on The Advantages of Rail Shipping vs Truck Shipping.

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But first, what is bulk transloading? Transloading is a transportation method that involves the transfer of large quantities of goods or materials between different modes of transportation. Goods are seamlessly transferred between ships, trains, trucks, and other transportation modes, as well as consolidated into larger shipments. Here at RSI Logistics our transloading operations are primarily focused on rail to truck, or truck to rail.

With its ability to optimize transportation costs, reduce transit times, and enhance operational efficiency, bulk transloading is revolutionizing the way businesses transport and handle their goods. Whether you’re an industry professional or simply curious about the logistics behind efficient transportation, this blog is sure to provide valuable insights into the power of bulk transloading and how it can positively impact your supply chain operations. Get ready to discover the advantages of this transformative transportation method and explore why businesses are becoming addicted to bulk transloading.

Cost Efficiency

Bulk transloading is considered a cost-efficient method of transportation for its ability to transfer large amount of goods via methods that are not inherently reliant on intense manpower. By consolidating large quantities of goods into a single shipment, economies of scale can be achieved. Economies of scale is the concept that increased output leads to a fall in the per-unit cost, which translates to a lower cost per unit of transportation. Additionally, removing the intermediate handling during transfers reduces labor and associated handling costs. Bulk transloading facilities make use of specialized handling equipment, such as conveyors, that further streamlines loading and unloading processes, which in turn reduces manual labor requirements and related costs.

By taking advantage of transloading, you can optimize and increase your cost efficiency which in turn means reduced transportation expenses and minimized fuel consumption. By considering factors such as cargo type, distance, infrastructure, and market conditions, you can harness the cost advantages of bulk transloading to enhance your supply chain operations and financial performance.

Time Savings

Bulk transloading provides significant time savings compared to traditional transportation methods. By eliminating individual loading and unloading processes at intermediate locations, it streamlines the supply chain, resulting in faster movement of goods. This time efficiency contributes to increased productivity and improved supply chain management.

Bulk transloading eliminates the need for multiple loading and unloading processes, minimizing transit delays, and reducing overall transit time. Optimizing transportation routes and scheduling further reduces transit time by minimizing distances and avoiding congestion-prone areas.

Improved supply chain coordination is facilitated through bulk transloading, enhancing visibility and control. It allows for better coordination among stakeholders, reducing communication delays and disruptions. Expedited order fulfillment is achieved, enabling you to respond quickly to customer orders and ensuring prompt delivery.

By optimizing transportation processes and minimizing transit delays, you can achieve faster and more reliable delivery of goods, gaining a competitive edge in a fast-paced market environment.

Flexibility and Adaptability

Bulk transloading offers a high degree of flexibility in handling different types of cargo and adapting to market conditions. It enables seamless transfers between transportation modes, allowing you to optimize logistics operations based on cost, capacity, and infrastructure availability. This adaptability enhances operational efficiency and responsiveness to customer demands.

You can design efficient supply chains by leveraging bulk transloading facilities near transportation hubs to create multi-modal networks. This combines different modes of transportation for efficient movement of goods over long distances, allowing you to choose the most efficient and cost-effective mode. Route optimization is achievable by strategically selecting transloading facilities along cost-effective routes, minimizing transportation distances and expenses. Specialized handling equipment in bulk transloading facilities accommodates various cargo types, including liquids, solids, and gases. This flexibility enables the transportation of diverse products, ensuring safe and efficient delivery.

The flexibility of bulk transloading enables you to quickly adapt transportation strategies to changing market demands. You can redirect shipments based on market fluctuations and capture emerging opportunities. This flexibility helps you meet customer demands and effectively manage your supply chains in a dynamic environment.

Improved Accessibility

Bulk transloading facilities are usually strategically located near transportation hubs such as ports, rail terminals, and highways. This proximity reduces transportation distances and costs, enhancing your accessibility to diverse markets and enabling you to connect efficiently with those markets. It overcomes geographic constraints by serving as distribution centers for remote or underserved areas, expanding market reach and creating opportunities for growth.

By strategically locating facilities along transportation routes, you can optimize supply chain networks, consolidating, sorting, and distributing goods to various destinations. This efficient flow of goods through well-connected supply chains ensures timely delivery and customer satisfaction. Additionally, bulk transloading facilitates trade and global connectivity, granting you access to international markets. Transloading facilities near ports enable seamless transfer of goods, facilitating participation in international supply chains and global trade.

Warehousing and Inventory Management

Bulk transloading facilities often contain warehousing facilities, providing additional benefits for you. These facilities offer temporary storage, enabling flexible transportation schedules and optimized order fulfillment. They facilitate efficient inventory management, allowing businesses to control stock levels based on demand patterns and customer requirements, reducing costs associated with stockouts or excess inventory.

Warehousing facilities often offer additional value-added services such as labeling, packaging, and quality control inspections. Transloading facilities with warehousing capabilities support cross-docking operations, reducing inventory holding costs and transit times for faster order fulfillment. Additionally, warehousing facilities act as a buffer against supply chain disruptions, ensuring business continuity and minimizing the impact of delays or unforeseen events on customer satisfaction.

These advantages enhance supply chain performance, reduce costs, improve customer service, and ensure effective management of goods throughout the logistics process.

Environmental Sustainability

Bulk transloading contributes to environmental sustainability efforts through various means.

It consolidates goods into larger shipments, reducing the number of individual trips and associated carbon emissions. By consolidating goods, bulk transloading reduces the overall number of transportation trips, minimizing carbon emissions.

Optimizing transportation routes and modes leads to more efficient fuel consumption and lower environmental impact. Efficient fuel consumption is achieved by selecting the most suitable routes and transportation modes for cargo, reducing greenhouse gas emissions. Multi-modal transportation maximizes the strengths of different modes, optimizing energy consumption and reducing emissions.

Bulk transloading aligns with eco-friendly practices, appealing to environmentally conscious businesses and consumers. Eco-friendly initiatives, such as using energy-efficient equipment and renewable energy sources, further enhance sustainability. Compliance with environmental regulations ensures responsible transportation operations. Strategic placement of transloading facilities near transportation hubs optimizes existing infrastructure, minimizing environmental disruption caused by new construction.

These practices reduce carbon emissions, minimize environmental impact, and support a greener approach to transportation and logistics.

Bulk transloading offers a multitude of benefits that make it an indispensable tool in modern supply chain management. From its cost efficiency and time-saving advantages to the flexibility it provides in handling different types of cargo, bulk transloading enables businesses to optimize their transportation strategies and adapt to dynamic market conditions. The improved accessibility provided by strategically located transloading facilities opens up new markets and expands customer reach. Additionally, the incorporation of warehousing facilities enhances inventory management, order fulfillment, and risk mitigation capabilities. Moreover, bulk transloading contributes to environmental sustainability by reducing carbon emissions, optimizing fuel consumption, and aligning with eco-friendly practices.

By leveraging bulk transloading, you can achieve greater cost savings, streamline your logistics operations, and enhance customer satisfaction. It is a versatile solution that empowers you to optimize your supply chain performance, respond to market demands, and unlock new opportunities for growth.

As we wrap up this blog, we hope that the insights shared throughout have shed light on the value of bulk transloading in today’s fast-paced and competitive business landscape. Whether you’re considering implementing bulk transloading or seeking to enhance your existing transportation strategies, embracing this method can unlock a world of advantages and propel your business towards success. Stay tuned for more informative content on supply chain management and transportation innovations in our upcoming blog posts.

The post Boosting Your Bottom Line: Six Benefits of Bulk Transloading appeared first on RSI Logistics.

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.

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What Are Intermodal and Transloading?

Both intermodal and transloading are methods of shipping processes that move goods from one mode of transportation to a different mode. This might mean moving goods from a ship onto a railcar, moving goods from a railcar onto a truck, moving goods from a truck onto a railcar, or any combination thereof. Any goods that must move long distances or cross oceans may require intermodal shipping or transloading, and sometimes both, since one mode of transportation may not cover the entire distance.

Intermodal and transloading are especially important for shipments that rely on rail. In many cases, intermodal and transloading may be needed to get goods from their starting point to their destination. But what are the differences between intermodal and transloading shipping? And how do you know when to use each?

Find the right transload facility
Take a look at the transload map >

Intermodal Shipping: Requires Intermodal Container

Intermodal shipping uses multiple modes of transportation, but it also requires a shipping container. During intermodal shipping, the goods do not leave the shipping container, regardless of which modes of transportation are involved. Any goods within a shipping container can be shipped via intermodal shipping, including dry and liquid bulk goods, perishable goods in refrigerated containers, chemicals, oils and gasses, building supplies, machinery, and more.

One of the most common types of intermodal shipping is via a ship across a body of water; goods in a shipping container are moved onto a cargo ship and may then be moved onto a truck or railcar to their final destination. Since the goods never leave the shipping container, intermodal shipping requires equipment capable of moving the container, such as a gantry crane, lifting jack, or specialized forklift.

Transloading: No Intermodal Container Required

During transloading, the goods are often moved from railcar to truck or truck to railcar. Similar to intermodal; many different types of goods, including perishables, non-perishables, dry bulk, liquid bulk, chemicals and more can be accommodated. Transloading offers rail shippers access to customers who may not have rail delivery options.

Just like intermodal shipping requires the right equipment to move shipping containers, transloading also requires the right equipment to move the goods from one mode of transportation to the next. This might include conveyor belts, pumps, pneumatic conveyance, forklifts, and more, depending on the type of goods you are working with. Different transload facilities may have different types of equipment and will be able to handle different goods. For example, some transload facilities may have the equipment and safety protocols to handle hazardous chemicals or flammable liquids, while others may not.

Find details on transload facilities on your route
Take a look at the transloading map >

Which Should You Use?

When it comes to intermodal vs transloading shipping, which should you use? And how do you know when to use each? The type of goods you’re shipping, the equipment available, and the modes of transport you are using may all be factors in your decision.

Many bulk commodities moving domestically are better suited for rail to truck or truck to rail transloading. However, some commodities that are moving globally or difficult to transload may be more suited to shipping via intermodal. Transloading can also give shippers access to alternative rail routes and make it easier to negotiate freight rates.

Comparing the advantages and disadvantages of intermodal vs transloading can also help you decide which is best for you.

• Security: Since intermodal shipping keeps goods within a shipping container and transloading requires the goods to be loaded and unloaded, intermodal can provide more security.
• Speed: Intermodal shipping can sometimes be constrained by the availability of gantry cranes and other equipment, as well as the availability of staff trained to use the equipment safely. Transloading is generally an easier process and can speed up the overall transit process.
• Flexibility: Transloading can also give shippers additional flexibility. Transloading allows you to move goods to many different modes of transport, while intermodal shipping has more limitations. With the right transload facility, you can find the most affordable and efficient routes, ideally by combining fast, local trucking and cost-effective rail shipping.

Consider your options carefully when comparing intermodal vs transloading, and the shipping modes available to you. With the right equipment and route planning, you can optimize your logistics for both speed and cost.

The post Intermodal vs Transloading and When to Use Each appeared first on RSI Logistics.

In the first part of this blog, we will talk about and examine when you should be identifying alternative rail routes. In the second part of this blog, we will discuss how, when the opportunity arises, you can determine alternative rail routes.

When to Identify Alternative Rail Routes

Captive Lanes

Captive lanes refer to rail routes where competition is not available. On captive lanes, only one rail carrier, usually a Class 1 railroad, controls the rail route. In these cases, it can be more difficult to negotiate rail rates; since the railroads on captive routes have little incentive to negotiate, captive routes often end up with higher rates than routes where competition is available. Identifying alternative rail routes can help to solve this challenge.

To identify alternative rail routes to captive lanes, transloading is usually required. Transloading is the process of moving a product from one mode of transportation to another; in most cases from rail to a truck. In other cases, it is beneficial to transload from truck to rail at the origin.

Transloading can overcome some rail specific challenges, such as captive rail lanes or reaching locations that are not served directly by rail. Utilizing trucking and transloading facilities, you can ship materials via truck across shorter distances while relying on rail for the longest stretch of the route, as well as make new routes available that would not be otherwise. To find alternative rail routes for captive lanes, it is helpful to first identify transload facilities within your target market, or geographical area. If you find a facility, it is possible that you can circumvent or bypass the captive lane.

Learn more about transload facilities and alternative rail routes
Take a look at the transloading map >

Long-Haul Trucking

If your goods or materials are traveling a long distance via truck transportation, shipping costs can quickly add up due to a combination of factors, including lack of drivers, weather, traffic, and road regulations. Compared to the cost of shipping by truck, for a long haul, rail shipping is the more economical and cost-effective option. Railroads are typically not as affected by outside factors as truck transportation and can carry bulk cargo items much more efficiently.

But what do you do if your customer is not rail served? In some situations, it may seem like long-haul trucking is the only option. Many areas are not easily accessible by rail due to the confines of the rail system and the cost of building new rail lines. However, locating transload facilities can help you reduce overall trucking miles and reduce costs significantly. Trucking between transload facilities can help to fill in parts of the journey, while cost-effective rail transit fills in the majority of the long journey.

This is another situation where it is helpful to identify alternative rail routes. Although it can take some up-front time and effort to find a route utilizing rail to replace part, or all, of your supply chain that is currently truck transportation, in the long run the cost effectiveness of rail will see a return on investment. And if you are concerned about shipping to areas that are not rail served, transload facilities can help you get your product from the railroads to your facility via a much shorter truck haul.

High Fuel Prices

Unfortunately, fuel prices have fluctuated significantly for many years, this fluctuation is a reality of supply chain economics. International conflicts, consumer demand, taxes, the refining process, as well as other issues, make it difficult to accurately predict fuel prices. When the price of fuel goes up, so do most transit costs due to the intrinsic relationship of fuel in shipping. However, since trains are four times more fuel-efficient than trucks, trains are the go-to alternative for medium to long distance transportation when fuel prices rise. Identifying alternative rail routes in these cases can help you reduce shipping costs long-term and minimize the effects of fuel price hikes in the future.

Identifying and utilizing rail routes takes time and generally is not a quick, overnight fix for suddenly rising fuel prices. However, identifying alternative rail routes can help you prevent losses due to fuel price spikes in the future. Since fuel prices are unlikely to substantially decrease in the future, and volatility is likely to increase, businesses who utilize rail shipping can stabilize some supply chain costs long-term.

Labor Shortage

As previously mentioned, shortages among supply chain personnel can impact shipping and transportation; a prominent recent example is the shortage of truck drivers. American Truck Associations estimate a shortage of about 80,000 drivers in 2022, with a total shortage of 160,000 by 2030. Labor shortages in trucking have already caused extensive delays and price increases, and as can be seen, this problem is unlikely to be solved soon. Contrastingly, staffing in rail operations tends to be more stable. Rail operations require fewer workers in general and are less susceptible to swings in demand. When labor shortages create challenges in other industries, identifying rail routes can provide a solution.

How to Identify Alternative Rail Routes

Identifying rail routes can seem complex at first. The process can be intimidating and complex; especially because rail, unlike truck shipping, is confined to already developed tracks and systems. However, there are a few strategies that can help to make shipping by rail and getting started in rail transportation more accessible. To identify rail routes and solve shipping problems you may be experiencing, consider the following:

Utilize Data

Rail rates, shipping costs, mapping tools and other data can show where the best opportunities for improvement exist. Visibility and data analysis can help you make smart decisions about which rail routes can provide an answer to your challenges. Consider data tools like our railcar tracking software RSInet to help make these decisions. These sorts of data tools allow you to track shipments in one place, manage your railcar fleet, automate reporting, and streamline your freight bill accounting; with all this information, finding an alternative rail route is less of a challenge.

Talk to Experts

Rail transportation experts can help you assess alternative routes and balance costs. Even with a good data tool, plenty of visibility, and the desire to move to an alternative rail route, it can still be a complicated process, even for experienced rail shippers. And the complication level only rises if you wish to implement transloading into your supply chain; the logistics of switching between two modes of transportation is a challenge. Sometimes you need someone, an expert, that you can bring your questions to and get an honest response. Fortunately, here at RSI Logistics we have several experts who are rail shipping professionals, and our Transload team is always happy to help you find alternative rail routes. Request information to get a conversation started.

View Transloading Facilities

Transloading facilities can provide access to rail routes in areas where direct rail access is not available. However, as we saw earlier, transloading can be a particularly difficult challenge. A big part of that is deciding where you can transload to minimize the costs. A transloading map like our Transload Terminal Directory can help you identify these opportunities and locations.

Conclusion

Knowing when and how to identify alternative rail routes can help you increase the stability and cost effectiveness of your shipping and supply chain operations. Consider these decisions carefully, calculate costs thoughtfully, and you can take advantage of long-term improvements.

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How Supply Chain Managers Can Navigate Truck Driver Shortages

Adapt with Rail

Shippers that are used to crossing long distances using trucking have likely noticed delays and expenses are both increasing. In many cases, rail transportation can be an inexpensive alternative. Shipping by rail is particularly economical across long distances, allowing supply chain managers to eliminate trucking for the entirety, or at least the majority of, the journey.

Rail transportation can also be effective across shorter distances. Many short line railroads can help customers find alternative routes across shorter distances. This is a win-win relationship between shippers and independent railroads; short line railroads improve the competitive position in a landscape dominated by the larger Class 1 railroads, and shippers get helpful information in using alternatives to trucking.

Take a look at the transloading map to map inexpensive rail alternatives
Try the transloading map

Review Locations

Alternative shipping modes, such as rail transportation, can help supply chain managers navigate truck driver shortages, but this is not an option for every location. In some cases, larger adjustments may be required to open up additional shipping opportunities.

Take a closer look at your shipping locations and see if you can adjust to take advantage of marine or rail shipping services. In some cases, although central transit hubs may extend the total shipping distance, they can actually result in lower costs by circumventing trucking.

Review Sources

Whether you are shipping raw materials, finished goods, or something in between, reviewing your suppliers and sources can also help you navigate truck driver shortages. Though reviewing your supply chain in such detail may seem like a drastic solution to a relatively short-term problem, the time and effort spent can have other benefits as well.

Also consider alternative materials, as well as alternative sources. Locally based suppliers may be more expensive at first glance, but reducing transportation costs can be more economical long-term. For example, builders that have encountered lumber shortages due to supply chain problems might consider working with recycled materials or plastics suppliers from nearby sources.

Work with Experts

When challenges present themselves across other parts of your business, you might work with experts to overcome them. Supply chain challenges are similar. If you’ve struggled with the truck driver shortage, but you’re not sure how to take advantage of other modes, other experts can help.

Consider outsourcing some aspects of your supply chain to use different modes or leverage relationships that other logistics experts may have. This might mean working with other shipping companies or working with experts to rework and remap some parts of your supply chain.

Talk to a rail logistics expert to perfect your rail routes
Get in touch

Insource Small-Scale Trucking

If the logistics companies you relied on previously have struggled to maintain their team, you may have more success by integrating some shipping into your own company. This may be especially true if you’re shipping on a somewhat smaller scale; employing one or two truck drivers locally will likely be easier than organizing an entire truck driving line in your company.

Look for Flexible Warehousing

When trucking slows down, you may have to keep your products or materials longer. Look for warehousing solutions that will not incur heavy costs. More affordable warehouse solutions might be farther away from your shipping points or destinations. Weigh this against the costs of your current warehousing solutions.

Offer Multiple Shipping Options

Consumers or customers may be willing to wait longer for their shipments if it means reducing their overall costs. This can also add flexibility into your supply chain. Some customers may need their products immediately, while others can afford to wait. By offering multiple shipping options, you can prioritize your shipping operations and reduce the need for fast shipping overall.

Looking for other routes, modes, and suppliers will help you navigate truck driver shortages in 2022, but it will also give you the flexibility you need to overcome other challenges in the future. Take a close look at your supply chain and pinpoint areas where you can make changes to reduce costs and improve speed.

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Transloading Equipment Requirements: What to Look for in a Transloading Facility

Different transload facilities are equipped to handle different materials. Some materials may have more stringent safety and transloading equipment requirements because of the dangers they pose to workers and surroundings, such as materials that are flammable, explosive, radioactive, or give off hazardous fumes. Other materials may be harmless, but they must be handled carefully because of the dangers of contamination, such as food products.

A material’s hazard class will provide more information about specific safety measures required to handle it. 49 CFR 173.31 and 49 CFR 174.67 provide additional details on transloading procedures and precautions.

Mechanical Conveyance

There are many different types of conveyance equipment for transloading facilities. Some utilize simple mechanical force for conveyance, such as conveyor belts. This type of conveyance is particularly useful for items that might be easily broken apart or damaged during unloading.

Pumps

Liquid materials will use pumps attached to gates or valves on the bottom of the railcar. There are many different types of pumps, with different specifications and mechanisms. Explosive liquids, such as acetic acid, formic acid, and formalin, and flammable liquids, such as ethyl ether, acetone, and benzene, require special pumps to prevent static charge, combustion through friction, or sparking hazards.

Pneumatic Conveyance

Some liquids as well as plastics and powders require pneumatic conveyance to minimize spillage and dust. Pneumatic conveyance devices help to minimize the materials’ exposure to the open air, preventing contamination or combustion from oxygen in the air, humidity, and other factors.

Lifting Equipment

When working with palletized items or when moving entire containers, the facility must have the proper lifting equipment. For moving pallets, the facility must have forklifts and personnel trained to use them. Moving containers will require cranes that are suitable for the weight of the container, and personnel who can operate them.

Steam Boiler

Many liquid materials require heating before they can be unloaded. This might be a seasonal problem, where the liquid becomes frozen in the tank car, or the liquid may simply require heating to be viscous enough to move. Low pressure steam boilers heat the tankers’ heat transfer coils and bring the liquid to the proper temperature. Different temperatures will be required for different materials, and the right steam boiler will show the pressure and temperature as it heats the liquid.

Spill Containment

Even with the best precautions and equipment, spills and leaks can still happen. For caustic or otherwise hazardous liquids, spills can seriously endanger the facility staff, or the surrounding city or environment. For this reason, spill containment precautions are essential. The spill containment barriers should be reinforced with curbs and dyking, preventing errant liquids from escaping the area.

Grounded Tracks

Some flammable or combustible materials can be ignited by static electricity. To protect against this, the rails surrounding transloading stations for flammable or combustible materials should be securely grounded and bonded. Grounded rods connected to the rail and looping wire between rails create a continuous line which maintains resistance across the rail and prevents the transfer of charge.

Additional Storage

In many cases, materials will require intermittent storage between rail lines and the next leg of the journey. In this case, the equipment to store the materials must also be safe and secure, preventing leakage, static electricity, contamination, theft and more. This might include the appropriate storage tanks, warehouse storage facilities, or on-track storage.

Transload equipment requirements and what you need in a transloading facility will vary according to the materials that you’re moving. If you’re unsure if a transloading facility is suitable for your materials, contact the manager of the facility for details. To see details on transloading facilities near you, use the transloading terminal map.

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6 Tips for Maintaining Food Safety in Rail Transit

Approximately 1.6 million carloads of food travel across the US every year. The majority of this is raw materials, including 413,000 carloads of corn syrup, flour, animal feed and other grain products, 239,000 carloads of soybean meal and soybean oil, and 235,000 carloads of beverages and extracts. Keeping these products safe in transit requires diligence and attention to detail on the part of shippers, their customers and transload facility staff.

1. Detailed and Accurate Bills of Lading

As food shipments make their way from origin to destination, the bill of lading gives transload facility staff an accurate description of what’s in each car. These documents make it easy to verify that each car is carrying the right materials, in the right quantity. Providing detailed and accurate information on the bill of lading helps to make inspections go smoothly.

If the bill of lading is frequently mismarked or the wrong documents accompany the wrong shipment, take a closer look at your documentation process. The wrong product description, railcar numbers, weights, seal numbers, or PO numbers on the bill of lading will inevitably cause delays. Make this process as accurate as possible to keep railcars moving swiftly and maintain food safety along the way.

2. Thorough Inspection Process

A thorough inspection process at each leg of the journey helps to maintain food safety for all types of food products. This process should be clear, well-documented, and communicated to all inspectors across the rail line. Shippers know their product best, and they are in the best position to design an efficient testing and inspection process. Shippers are also into the best position to assess threats to product quality in their HACCP plan.

Clearly define all inspection procedures, including the tests needed to verify product quality, and the acceptable limits of the test results. Also, pay close attention to a transload facility’s inspection process, and integrate these inspection steps where possible. Though shippers know their product best, facility staff may have a better understanding of the unique contamination risks posed by rail transit. Combining this expertise in a thoughtful inspection process will guard against multiple risks and threats.

3. High-Quality Railcars

It’s difficult to maintain food safety in rail transportation—or any transportation mode—if the transit equipment does not meet quality standards. Shippers generally take on more responsibility here compared to other transit modes, as they are generally responsible for the state of the transit equipment, where a carrier is generally responsible for equipment in other transit modes, such as trucking. However, this also gives shippers more control over equipment, and can reduce product loss due to faulty equipment, as long as the equipment is well-maintained. Equipment quality is essential to maintain food safety in rail transportation.

Exterior damage to a rail car can indicate more extensive damage to heating coils or cooling components inside the car. If the car is showing rust or chips in paint, it’s a good idea to inspect the car more thoroughly. If heating and cooling components, seals, valves, or other essential equipment is not working properly at any point in the journey, the product can be compromised.

4. Vet Transload Facilities

Before shipping your food items along the selected route, make sure that each facility has the training, expertise and equipment to handle your product. Ask about standard operating procedures and inspections. What steps does the facility take to ensure that the product entering the facility is safe? Or, what tests can or do they regularly perform? What are their training procedures and HACCP plan? Ask to see the results of an internal audit as well. All of this information can help you decide if the transload facility is right for the materials you’re working with.

5. Open Communication, Data and Planning

If something goes wrong along the product’s rail journey, inspectors at transload facilities will alert shippers. If a seal is broken, a product tests outside of the normal range, a railcar is damaged, a waybill is inaccurate, or another issue arises, the facility will contact you. It’s important to communicate quickly, openly and clearly in this situation. Information about your railcars, other transload facilities, shipping facility, or other data can help to show if the issue is the result of a clerical error or poses a real threat to the product quality. In this case, there should also be a clear operating procedure and decision-making process for issuing a claused bill of lading, returning a shipment, or taking other action.

6. Efficient Supply Chain Operations

Railcars sitting on tracks, delays in loading or unloading, and inaccurate documentation can all slow down operations and create problems. Delays and mismanagement can quickly become bigger problems as shipments move through the supply chain. One of the best ways to maintain food safety in rail transit is to maintain efficient supply chain operations. If your railcars are frequently incurring demurrage costs and operations are not meeting deadlines, take a closer look at the organization and data behind your logistics processes. With more efficient supply chain operations, you can reduce costs, improve timelines and maintain food safety in rail transit.

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