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Rail mergers and pricing
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Since I'm not a marketing type, I have to be careful what I say here, but, generally, the last thing that a customer wants to have happen is his traffic hitting a tarriff rate. By far, most rates are negotiated in today's environment. As for through rates, these can either be interline rates, where all involved agree upon a rate, or Rule 11, where each carrier protects their own revenue. If you could look at a waybill (which really don't exist in the traditional sense in the electronic universe we have today), you would be hard-pressed to tell the difference between an interline bill and a Rule 11 (letter "R" in the "Agent/Shippers" field is the clue). <br /> <br />The real magic is behind the scenes in each carrier's accounting systems and how they communicate with each other electronically to settle divisions. Even if the waybill is created incorrectly and the wrong rates are initially applied, the systems involved generally do a pretty good job of hitting the right contract and divisions through pretty sophisticated rule-based systems (if commodity "a", origin "b", destination "c", shipper "d", consignee "e", and over route "f", it's probably contract "g"). That's because it's extremely labor-intensive to work customer claims in this area. It is far more cost-effective to get it right up front. And if it's an unexpected move, it is always possible for a marketing rep to write a contract to cover a prior shipment, within reason.
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