302% Increase In Rail Premiums Above Expenses
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.
The chart shows:
- Railroad profit, as measured by the difference between railroad’s Real operating revenue and expenses, increased 302% since 2004.
- Over the prior 19 years (1985 – 2004) Real rail profits fluctuated in some years, but cumulatively did not change.
- 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.
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.
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