22 Apr 2016
Our agricultural clients ship a multitude of commodities produced from the humble corn plant, not the least of which is the fuel additive ethanol. With the growth of the ethanol industry, rail freight traffic of this valuable commodity has increased dramatically over the last few years, accounting for 60 – 70% of all ethanol transport. With markets for ethanol spread from the East Coast to the West Coast, most receive their product via Class I railroads. However, given the rural nature of ethanol production, thousands of carloads of ethanol pass through the hands of smaller short line railroads on their way to the big carriers. When auditing your freight costs, these smaller bills cannot be overlooked. The volume of traffic in this area may surprise you. Billing errors can easily occur when these smaller carriers hand off loads to Class I railroads. Is it a switch? Is it a linehaul? Am I paying twice for the same move? Let our transportation experts examine these short line bills in relation to your other freight bills and put some money back on your books.