No Rail Service at Your Facility? No Problem.

Did you know that even non-rail served facilities can still utilize rail to move product?

This is achieved by using rail-served transload facilities as intermediaries either at the origin or destination. 

What exactly is transloading? In short, it’s a supply chain optimization tool. It allows a shipper to: 

• Move freight between ocean, rail and truck  

• Convert international containerized freight into domestic shipments  

• Consolidate or deconsolidate cargo  

• Reduce unnecessary storage  

• Get freight closer to its final destination  

• Combine shipments headed to multiple destinations  

• Handle freight that can't economically move through one mode for its entire journey 

At Absolute Logistics, we work with all the Class 1 railroads and short lines to help shippers and receivers realize the advantages of shipping via boxcars, flatcars and other types of rail equipment. These advantages include cost savings, rate certainty, reduced carbon emissions and even reduced lead times.

When looking at cost savings, let’s consider a destination transload program from Los Angeles to Chicago. Before we start, one key piece of information to know is that, in general, one railcar carries the equivalent of four truckloads.

For example, if the average price of a truck from Los Angeles to Chicago is $5,800 or $23,200 for four truckloads. The cost of shipping via a single railcar including all switch fees, transload facilities costs and final-mile delivery is $16,700 or $4,175 per truck load. This adds up to savings of $1,625 per truck.

With yearly and seasonal fluctuations in the truck market, shipping via rail can help shippers achieve rate certainty. This is because railroads and transload facilities hold rates constant over a pre-determined period of time, usually one calendar year. This means no unexpected price increases because of an increased demand in trucks.

Looking at the carbon emissions reductions, we find that shipping via railcar from Los Angeles to Chicago saves an average of 9 tons of CO2 per railcar shipped. This is an important aspect to consider for any company looking to reduce their carbon footprint.

Finally, by shipping to a rail-served facility near your customer and having product on hand, you can provide next day service to your customer, rather than waiting the 3-5 days it could take to ship a truck across the country.

Call, e-mail or submit a web form to learn more about your company’s options.