Unlocking Lower Rail Rates with Quarterly Freight Commodity Statistics
Unlocking Lower Rail Rates: How the STB’s Quarterly Freight Commodity Statistics (QCS) Help Shippers Save
Understanding the intricacies of rail cost control can be pivotal for businesses. In this article, we will delve deeper into how shippers can harness the power of the Quarterly Freight Commodity Statistics to optimize their shipping strategies and help ensure they secure the best possible rates. We will explore various case studies, techniques, and expert insights that will empower you to navigate the freight rail landscape more effectively.
Utilizing these insights, helps determine reasonable rates for rail movements, ensuring they remain competitive.
In the evolving landscape of logistics and transportation, the ability to leverage data effectively can mean the difference between profitability and loss. The Quarterly Freight Commodity Statistics (QCS) serves as a vital resource for shippers aiming to negotiate more favorable rates with Class I railroads. This comprehensive dataset is put out by the Surface Transportation Board (STB), from revenue and carload data provided by each class I railroad. The QCS contains data down to the 5-digit STCC which provides a wealth of information that can be pivotal in shaping your freight strategy.
These quarterly reports offer a goldmine of insights that can directly support cost-saving strategies—if you know how to use them.
The QCS reports not only reflect current market conditions but also allow shippers to make historical comparisons, giving them a clearer picture of trends and shifts in the freight rail market. With every quarterly release, new opportunities arise for shippers to reassess their strategies and align them with the latest market data.
What Are the Quarterly Freight Commodity Statistics?
The QCS is not merely a collection of numbers; it is a detailed analysis of the freight rail market. By breaking down the statistics into various categories, shippers can gain insights that are crucial for their operations.
The QCS is a comprehensive dataset collected by the STB that provides granular details about the traffic volumes and revenues of each Class I railroad’s operations in the United States. The statistics are broken down by:
1. Commodity type
2. Railroad carrier
3. Carloads
4. Revenue
5. Average Revenue per Car
6. Tons
This dataset can be instrumental for shippers in identifying revenue and carload trends in specific commodities, allowing you to forecast demand and adjust your shipment strategies accordingly. For example, if a shipper notices a spike in the transportation of fertilizer products during harvest seasons, it it can prepare for potential increases in rail rates by proactively negotiating contracts ahead of time.
Published four times a year, the QCS offers a valuable snapshot of national freight patterns and railroad activity, segmented by both individual railroads and commodity groups.
The implications of these statistics extend beyond mere observation; they also empower shippers to shift their logistics strategies based on current data, to help stay competitive in the marketplace. The ability to analyze these patterns can lead to more informed decisions regarding shipment timing and cost management.
Why This Matters for Rail Shippers
In today’s competitive landscape, leveraging data effectively can significantly enhance a company’s bottom line. The QCS serves as an indispensable tool for shippers of all sizes, from small businesses to large corporations, allowing them to benchmark their operations against competitors on each of your railroads.
For companies that rely on rail to move products — be it grain, plastics, chemicals, or manufactured goods—the QCS can be an indispensable benchmarking tool. Here’s how it can be used strategically. Six specific examples for how QCS data is used to reduce rail expenses are provided below:
1. Support Rate Negotiations
Tracking the QCS percent change in a railroad’s average rate for your commodity over time lets you see how your rates have changed in relation to other companies (your competitors). Your negotiation leverage increases when you can support that your rates are increasing more than other companies on your railroad. This is especially true when you use your railroads’ own data for your commodities. Objective, data is a powerful negotiation lever. Shippers who reference the QCS can bring credible market insights to the table—strengthening their position in rate discussions or contract renewals
2. Benchmark Against Market Averages
The QCS includes the average revenue per car figures across different commodities and carriers. If you’re paying significantly more than what’s reported for your commodity on a railroad, this provides more leverage to challenge your rate.
3. Help Improve a Railroads’ Business Model
The QCS will show when rate increases are causing a railroad to lose volume and revenue for commodities you ship. Once aware of this problem you can become a part of the solution for the railroad. For example, by tracking the change in QCS rates in relation to carloads and total rail revenue for a commodity over time you know the impact of rate increases on a railroad’s total carloads. This provides you with the information you need to help improve the railroad’s business model for your commodity. Partnering with a railroad to resolve this problem can then become a major part of your negotiation strategy.
4. Understand Changes In Railroad Volumes
Shippers can analyze historical QCS data to predict future trends. For instance, if there is a consistent increase in the demand for a particular commodity, shippers can prepare for potential rate hikes by securing contracts at current rates before they rise
5. Understand How Important Your Business is to a Railroad
QCS carload data shows how important your business is to a railroad. This data will show whether your business represents 5% or 60% of a commodity on your railroads system. Knowledge represents power in negotiations, and the QCS provides much needed knowledge about your relationship with a railroad.
6. Spot Seasonal Trends
Since the QCS comes out quarterly, it can be used to track patterns across the year. Knowing when rail volumes are low can help you time rate negotiations or shipping schedules more strategically.
Final Thoughts
In an era where information is key to making sound business choices, the Quarterly Freight Commodity Statistics offers shippers a competitive edge. By arming themselves with this data, shippers can approach the negotiation table with confidence, backed by credible insights that reflect the realities of the freight rail market.
In an environment where transparency is limited and railroads often hold the upper hand, tools like the Quarterly Freight Commodity Statistics empower shippers to make more informed decisions. Whether you’re a small shipper looking to validate reasonable rates and rate increases or a large shipper seeking strategic leverage, QCS data can be a critical piece of your cost-control puzzle.
As you consider your own shipping strategies, remember that the QCS is more than just a reporting tool; it is a roadmap for navigating the complexities of rail freight costs. By integrating this data into your logistics operations, you can foster better relationships with carriers and ultimately drive down your transportation expenses.
How Rail Shippers Use RCC to Access and Leverage QCS Data
The Rail Cost Control (RCC) program is designed to bridge the gap between raw data and actionable insights. By utilizing the RCC platform, shippers can not only access QCS data but also analyze it through sophisticated tools that provide a clearer understanding of market trends.
Rail shippers don’t have to dig through raw Surface Transportation Board files on their own to benefit from the Quarterly Freight Commodity Statistics. The Rail Cost Control (RCC) program makes this data more accessible and actionable by integrating current and historical QCS data directly into its platform. Through RCC, shippers can easily analyze commodity-specific traffic volumes, revenue metrics, and carrier market share—all within a user-friendly interface designed for rate benchmarking and negotiation.
Shippers can take advantage of features such as real-time data analysis and customizable reports, which allow them to tailor their insights based on specific needs. This adaptability ensures that firms can react swiftly to market changes, reinforcing their competitive position.
Conclusion: Rail Shippers Need the Rail Cost Control (RCC) Program
While QCS data is a valuable resource, they are just one piece of the puzzle. To fully leverage them in rail negotiations, shippers need context, interpretation, and tools to compare rates and costs across movements. That’s where the Rail Cost Control (RCC) program becomes essential. RCC combines QCS data with proprietary rate benchmarks, the Public Use Waybill Sample, and network modeling tools to give shippers a complete picture of their rail spend and negotiating position. It transforms raw data into actionable insights—empowering shippers to push for fairer rates, defend against unjustified increases, and strategically manage their rail costs.
