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#BGInvestigates: Is Rail Transport Right on Track for your Business?

 

Rail Transport | Rail Freight Shipping | Intermodal Transportation
When it comes to transporting your heavy load, have you looked into all transportation modes?

The Shipper’s Key to Railroad Freight is Planning Ahead of Time Based on your Business Model.

When it comes to transporting your heavy load, have you looked into all transportation modes? The U.S. rail system is one of the largest contributors to our economic well-being, providing an efficient long haul transportation alternative. In 2009, following a historic $26 billion railroad investment, Warren Buffett was quoted saying

“Our country’s prosperity depends on its having an efficient and well-maintained rail system.”

With increasing diesel fuel prices and rising carbon emissions – The planet can’t afford for you to ignore the benefits of rail freight shipping!

Suppose that your business has freight going from Tampa to Los Angeles, about 2,500 miles. While road may take 4 ½ transit days, rail would take approximately 10 days. Now, I know what you’re thinking, “That’s a big transit difference!” We agree – but how fast could YOU travel with 100 tons on your back?! Not to mention the difference in environmental impact. Did you know that rail is the most energy efficient way to move your goods on land? In fact, rail uses on average 4x less energy than truck, reducing carbon emissions by 75%! The point is… If your business can plan ahead, then you can utilize rail to transport your goods and significantly reduce your supply chain costs and carbon footprint. Sounds like a pretty good deal, huh?

This issue of #BGInvestigates identifies a few questions to help you identify if rail is the ideal mode of transportation for your business.

  • What type of goods can be transported by rail? Coal is the most important commodity carried by rail, followed by other products such as chemicals, grains, farm products, non metallic minerals, waste and scrap.
  • Approximately how many tons can a rail car handle? While a truckload can handle about 43,000 lbs., a rail car can handle 100-110 tons.
  • How do you receive a freight rate for rail? Contact one of our Freight Experts via email or phone (800-697-4477) so that s/he can identify the rail lane options and select the best route for your freight.  This is a customizable process and it’s important to know all of your transportation options.
  • Is booking railroad freight difficult? Not at all! After receiving a competitive price to transport your goods, you can fill a container when time allows and schedule a truck to pick up your freight from your business location. From there, the driver will take it to the rail yard where your freight will be loaded and sent off by railroad to its drop off destination.

So what do you say? Does rail seem like the right track for your business? Contact one of our Intermodal experts today to analyze the advantages and cost savings potential to move your goods via rail. As we continue to research new methods that will save you money and the environment while improving efficiencies, we’ll report them to you! Did you find this post helpful or have an idea the BG Investigates Team should look into? Don’t forget to mention it on Twitter (#BGInvestigates).

Have freight that’s ready to be shipped by rail? Share a picture!  Are you on Pinterest? Pin it!

#BGInvestigates: How Regulations Affect the Transportation Industry

The transportation industry is no exception when it comes to government regulations. In the coming year, many regulations will be enforcing drastic changes in the transportation industry. These changes will impact the bottom line of truck drivers, carriers, shippers, consignees and even consumers. As regulations increase, trucking companies are forced to increase shipping costs, in turn, driving the cost of products in the market to rise. BG Investigates points out why it’s important to be aware of new industry laws and regulations.

Many transportation regulations are highly controversial in regard to their costs and effectiveness. Specifically, the CSA 2010 law was passed in December of 2010 and remains a top concern. According to the FMCSA, a part of the US Department of Transportation, the Compliance, Safety, Accountability (CSA) initiative is a regulation that is working to further reduce commercial motor vehicle crashes, fatalities and injuries on our nation’s highways. The trucking industry (including common carriers) feel the impact of this regulation as drivers are taken off the road due to safety concerns. Although this helps to increase safety, the loss of truck drivers due to CSA regulations has caused driver and capacity shortages.

“We are really starting to see the impact (of CSA 2010) in the industry right now. Every day we are seeing carriers that are being rated down to conditional and last week we saw five carriers shut down by the DOT for unsafe ratings. Obviously that increases the capacity constraints we have in the market by reducing the amount of drivers on the road and causes an increase in rates,” says Chris Reeves, Director of Specialized Services.

The debate continues on many other government policies. The Hours of Service regulations published in December 2011 were enforced to control the amount of hours a driver can be in operation. The HOS rules cause changes in the current transit times for shipments, as drivers are not able to travel as long. There are severe penalties for both the driver and carrier for violations. Industry groups argue that these regulations should change before they officially go into effect July 1, 2013.

BG Investigates uncovered the following transportation industry regulations that all readers should be aware of for 2012 and beyond:

  • Stability Control Standards – Technology mandate controlling stability on heavy-duty tractors to preventing rollovers of trucks and trailers.
  • Mandatory Speed Limiters – Controlling the speed of trucks to prevent accidents.
  • Crashworthiness Standards – Standards, similar to automobiles, that help protect truck drivers involved in accidents
  • EOBR RegulationsElectronic on-board recorders tracking the time truck drivers are on the road.

The laws and regulations of the transportation industry are constantly changing. Whether you are a truck driver, carrier, shipper, consignee or consumer, you should consistently be informed to be compliant and understand the effects it may have on your business model.  BG Investigates will continue looking and reporting the status of new transportation laws and regulations that affect you, so keep an eye out for future articles. Contact one of our knowledgeable representatives at BlueGrace Logistics with any questions about industry regulations or call 800.MYSHIPPING.

– Ben Dundas, Sr. Marketing Analyst