How is line haul rate for interchange set? - Trains Magazine
Mac:
Thanks for that description. I am an old "traffic guy" for an LTL carrier in the 1980s. In 1990 I moved on another industry and never looked back, but I still have a little "Rate Bureau DNA" in my blood.
I worked for what would be considered a "shortline" when compared to the rail industry. My employer was a local LTL carrier from Chicago to Northern Indiana and I negotiated and maintained rates and division of revenue splits with almost all the regional and national LTL carriers (CF, Roadway, Yellow, Holland, etc). Further, I was on the General Rate Committee of a regional Tariff Bureau (Central States). It was an interesting system of pricing and revenue divisions, to say the least.
Now, a few questions, if you do not mind...
1. What percentage of carload business today, would you guestimate, moves on tariff rates vs contract rates?
2. From what I read from your comments, there is no avenue to legally split tariff rates between two carriers....is that correct? That would be due to anti-trust issues. So, if that is the case, would tariff moves be only single line (or in the case of shortline, contract for origin/destination)? In other words, lets say there is a grain movement from North Platte, Nebraska to Pittsburgh, Pa over Chicago (UP/NS). If that moves by tariff (no negotiated rates) then would there be two rates and two bills? (UP to Chicago and NS from Chicago to Pittsburgh).
3. If there were a contract rate between NP and Pittsburgh, then there would be a single rate and billing with one carrier billing and collecting and then making a settlement to the other carrier....correct?
4. Does each contract rate then require a separate revenue split agreement between carriers, or are those generally grouped by common origin/destination points? ie...group all origins in Western Nebraska together and all western Pa together.
5. Lets say UP blocks this movement with other Pittsburgh region traffic into a block or train destined for Conway/Pittsburgh which bypasses all NS yards except for destination. Will UP generally negotiate a higher revenue split for the added yard service?
I am sure that more questions will arise, but those will be a good starting point. I am far more interested in the revenue aspect of a train than the motive power (unless old GP or F/E units then I truly foam at the mouth).
We havent even began discussing intermodal moves...
ed