Price wars are shaking up the shipping industry as rail lines lower prices to keep and attract customers. Following a turbulent 2015 that was impacted by the west coast labor disputes, BNSF and other railways are offering significantly reduced spot rates for 53-foot containers on routes across the country.
JOC.com reports that 17 out of 18 major lanes have roughly 20% lower rates compared to one year ago. Many lanes now cost about $300 less.
These aggressive price reductions have spurred high enough demand that the rail lines may not be able to sustain the competitive advantage. Logistics and investment experts predict that prices will level out, but the rail companies are enjoying the price battle in the meantime.
Rail Freight in 2016
Warehousing and distribution companies looking to take advantage of the rail rate cuts can expect rates to eventually level off or increase. However, the high rates of early 2015 were due in part to port congestion so the rates are likely to stay lower than they were during that time.
For a company switching to rail or increasing their volume of rail freight, new equipment can facilitate the process. A rail cart caddy has the ability to maneuver and move rail cars indoors or outdoors with a battery-powered motor.
One employee can move a rail car at up to 3 miles per hour. The rail cart caddy connects with a coupler and the employee then steers the car with a twist grip handle.
For more info on the rail cart caddy and other material handling solutions for the logistics industry, contact DJ Products.