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22 Mar 2016

Switching Things Up

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The rules that govern rail transportation rates are vast and complicated. The myriad factors involved in figuring a rate to move your freight can be mind-boggling. Take, for instance, the rules surrounding the issue of switching. Let’s say your commodity is moving from point A to point B, and point A and point B are hundreds of miles apart. No problem, right? Just apply a line-haul, move your freight, pay your bill and you are done. Not so fast! The next question is how does the commodity get into your customer’s facility? The railroad you hired to move your freight just rolls up to your customer’s door and unloads, right? Not always. It’s true some railroads serve certain industries and can do that and sometimes there is mutual access between railroads. If neither is the case, switching is required. In this case, error-fraught freight bills often ensue.

Switching fees are applied, many times incorrectly. Varying absorption rates by line-haul carriers and lack of identification of switching carriers on a freight bill can confuse matters further. And what if you just need to move freight from one side of a large metro area to another? There are special switching rules and rates for these kinds of moves too. These are the kinds of issues that AMTR’s team of experts focus on when analyzing your freight bills. Our auditors know these rules and apply them to reclaim your money paid in error, adding it back to your bottom line.

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