I was hoping that this question would have been answered in the latest issue of trains, but it wasn’t. I am wondering just how much notice does a shipper have to give a railroad if they want to use their intermodal service?
I know companies like UPS, J.B. Hunt, etc. have contracts that start on a certain date, but could a smaller carrier just make a call and ask “can I get a trailer on the next train?” Would the process go easier if the carrier had someone on the other end to pick up the trailer?
I am sure your willing to pay them the fee they will let you use the train that day as long as you make the Cut off for the train. See Intermodal is based on Time cut offs. You make that time your Trailer will go on that days train based on what I was told by my old bosses that are shipping Freight on the BNSF on Z trains to So Cal and Nor Cal. They give BNSF about 2 hours warning that they need a spot have the trailer before the Cut Off it gets loaded NO questions asked.
That’s been my experience as well, although I wouldn’t push it too close to cutoff. Sometimes trains get overbooked and the overflow waits until the next train.
Do the motor carriers make “reservations”? Obviously the intermodal yard needs to know what kind of equipment is necessary for that day’s train.
Is a bill of lading actually executed between the carrier and the railroad? Typically the bill of lading is a contract between the shipper and the carrier. Perhaps in the intermodal world, the carrier is considered to be the “shipper” (in the railroad’s eyes).
No need asking about pricing as that is negotiated for the big guys (JBH, UPS, et al).
International containers returning empty to the port…are those revenue loads for the rails? Reduced rates?
First, you’ll have to have an account already set up with the railroad, and - most importantly - have satisfactory credit arrangements made so that it knows it will get paid. Once you’ve satisfied those administrative requirements:
I had a feeling that is how it worked. I knew about the cutoff times, I just wasn’t sure about those who never used intermodal before and did not have an account with the railroad.
I wonder just how many shippers actually wait till the last minute to get their trailers to the terminal?
The trucker/customer needs to talk to the railroad first. They’re going to want to know how they’ll get paid. IIRC the BNSF requires an electronic funds transfer procedure be in place before they’ll take the load. They don’t do credit.
In the old days, around 1980, the railroad would just set the track with as many flatcars as experience told them they would need. Whatever came through the gate by cut off would go on the train. Assuming the trucker/customer had established credit. If too many loads showed up, some of 'em missed the train.
A UPS load would never miss a train. The railroad would unload someone lessor customer’s load from the flatcar and put the UPS trailer on the car.
That’s a very important point. The railroads do a much better job of managing credit than the truckers do. CN, for example, requires payment within 15 days of invoice date unless alternative arrangements have been made ahead of time. At CN 15 days means 15 days, not 18 or 30 or 60. I get the distinct impression that late payments aren’t tolerated…one or two of those and your business will no longer be welcome.
What does your AR average run? If a company has the ability to keep the payments at or below 30 days, it is a great advantage.
I recall my early days in trucking industry (back in early 80’s) we had an account (our largest) which with the bill of lading issued a site draft. It essentially was a blank check. Freight charges were literally and figuratively “prepaid”.
You’re right Ed…I keep my payments at 21 days max. Most anyone I tell that though thinks I’m bluffing. But the truth of it is I was extremely lucky to find good customers when I got started. No skill on my part as I did nothing to manage my payables when I first got going…I was totally naive about how the credit world worked and took it on faith that if I sent a bill that specified payment in 15 days then that’s what would happen. Now I do have processes in place much like any well managed business. Like so many others in biz though, I had a large helping of good luck initially.
“Sight draft” is explained about halfway down this page (among others), in the export context: http://www.export911.com/e911/export/bill.htm It’s more like a signed check that is “Payable to the bearer/ holder”. For more info, do an Internet search, or take a course in “Negotiable Instruments”.