Change in RR's Inflation Premium Above Expenses

302% Increase In Rail Premiums Above Expenses

2023 Rail Negotiation Seminar Early Bird Pricing

The premium railroads make above their operating expenses, in inflation adjusted terms (Real Terms), has dramatically increased in recent years, but not in the more distant past.

Change in RR's Inflation Premium Above Expenses

The chart shows:

  1. Railroad profit, as measured by the difference between railroad’s Real operating revenue and expenses, increased 302% since 2004.
  2. Over the prior 19 years (1985 – 2004) Real rail profits fluctuated in some years, but cumulatively did not change.
  3. In Real Terms railroad profits simply kept up with inflation between 1985 and 2004.

The goal of effective rail negotiations is for a shipper to minimize rates that generate the type of results obtained by railroads in recent years by developing leverage to maximize the type of results obtained by shippers in prior years.

How shippers structure their rail negotiations has a big impact on their ability to control the cost of rail freight. The Rail Negotiation Seminar is a program that is structured to improve rail negotiations and stop shippers’ cost of rail freight from always increasing.  Don’t just take our word, check out the recommendations of past attendees to this program.  

Rail Negotiation Seminar Recommendations

Some important topics covered in the seminar that increase negotiation leverage:

  • Negotiation leverage not related to the competition for a movement
  • The benefits of being proactive and not reactive with railroads
  • Structuring the RFP to reduce cost by creating more pricing options
  • Optimizing your rail spend to increase negotiation leverage with railroads

Don’t wait to register – Early Bird pricing is available through January 31st! For more information about the Rail Negotiation Seminar, click banner below to download the brochure. 

2023 Rail Negotiation Seminar Brochure

STB’s Annual Rail Rate Index Study: A Deeper Dive

STB’s Annual Rail Rate Index Study: A Deeper Dive

As of he newly released STB Annual Rail Rate Index Study (Study) summarizes trends in freight rail rates between 1985 and 2019. The Study shows that inflation-adjusted Real Rail Rates have decreased 27% over the past 34 years. Because Real rail rates are lower now than in 1985, the STB Study may be read by some to imply that current rail rates are reasonable in relation to what they have been historically. Unfortunately, this is not an accurate conclusion, because the historical trend in rates provides an incomplete picture of the change in cost of shipping freight by rail.


To read the full article, click below:

STB’s Annual Rail Rate Index Study: A Deeper Dive

Rail Rate Increases by Commodity

Staggering Rail Rate Increases Across Commodities

Rail Negotiation Seminar Early Bird PricingThe cost of shipping by rail has increased more in 2022 than any year in the working life of most transportation people!

Rail Rate Increases by Commodity

[Percent Increase Measures the Average Revenue Per Car Including Fuel Surcharge Revenue]

Results from analysis of 2022 rail rates:

  • Double digit rate increases, including fuel surcharge revenue, have become the norm and are no longer the exception.

  • Of the 36 two-digit Standard Transportation Commodity Codes, 69% have had double digit rate increases in 2022.

  • The rate increases railroads are obtaining from different commodities varies dramatically.

Understanding railroads revenue goals for your moves and how you can impact those goals can have a significant impact on your cost of moving rail freight.

The 2023 Rail Negotiation Seminar contains essential information and strategies you need to control rail freight expenses in the current rail market.

Rail rates have increased to the point where the cost of not exploring all your best avenues for better controlling rail expenses is just too costly.

The Rail Negotiation Seminar is an annual event that has changed how many shippers interact with their railroads and this is the most highly recommended program for helping shippers reduce expenses. View the seminar recommendations to find out why.

For information on the Rail Negotiation Seminar and why this program is so important to shippers in the 2023 rail market, click the link below to obtain a brochure for the seminar.

2023 Rail Negotiation Seminar Brochure

Major Railroad Rate Increases

Big Changes in Cost of Rail Freight