QUOTE: Originally posted by MP173 The split of revenue, as mentioned by Greyhounds is based on "divisions" or what we called in the LTL industry "factors". A book of factors was used based on common interline points. Points within a state were then assigned factors to these common points. Then the revenue would be divided accordingly. For instance...and these are not accurate, but are probably close. A shipment from Ft Wayne, Indiana to Los Angeles, Ca interlined at Chicago. Factor from Ft. Wayne to Chicago = 68 Chicago to Los Angeles = 450 Originating carrier receives 68/518 of revenue or 13% Terminating carrier receives balance or 87% These LTL factors were based on rail rates from the early 1900's believe it or not. They did tend to give a higher percentage to the short haul carrier, rather than mileage factors (Ft Wayne to Chicago - 200 miles, Chicago to LA - 2200, resulting percentage = 8%). I am sure, but not positive the rails did something very similar. If it was a contracted move, such as a stack train or a coal unit train, the rate divisions were no doubt negotiated based on other factors such as costs for picking up and delivery and who's power is used. ed
QUOTE: Originally posted by piouslion Back to mergers for a moment; from all the conversation, I get the idea that Canadian Pacific CP is odd one out. Seven large systems merge down to two super roads remaining from the combination of any three in the article. HOW SAYS THE FORUM?
QUOTE: Originally posted by toyomantrains Could any of you great minds dumb this down a bit for someone like me and expand a little further if possible? Can you give a generic example (maybe in percentages) of something like ,say a Maersk ship off-loads its containers at the Port of La. A consist is made on the UP with half of its containers headed for Chicago and the other half for Pittsburg. How are the different carrier costs divied up? What if they have to re-route due to a derailment? How do trackage rights play-in? I'm not asking about the customer- they probably are most likely locked-in to a rate, correct? How do the different rail carriers deal with each other and problems that arise during transit? It doesn't have to be intermodal from West coast to midwest- any product that changes hands between supplier to user.
QUOTE: Originally posted by passengerfan In the merger article in trains one wasn't mentioned and that was a combination of BNSF, CN and KCS. This would probably be the ultimate merger combination with through routing between Canada and Mexico as well as virtual control of much of the western US and Canada. With the new Container Port facilities to be built at Prince Rupert the possibilities for a merger of these three is limitless for doublestack traffic. and even the long thought of Land Bridge comes closer to reality.
QUOTE: [i]Originally posted by greyhounds The CNW had little choice in the matter. It either had to match the ICG offer or loose the business. One of the many ways economic deregulation benifited the shipping public. It allowed price competition.
QUOTE: Originally posted by piouslion The question that comes now is; Do railroads have treaties between themselves for certian parts of business they interchange much as the life insurance business has between companies when assessing and dividing risk risk for an offer of coverage?
QUOTE: Originally posted by MP173 Bob: One more question (got a feeling I will use this statement often)...in your review of the styrene shipper, you mentioned the word "charter". Is that the same as a contract? Or do you mean charter as in a "charter air flight" in other words specific movement for then entire vessel? Might be splitting hairs here. The key ingredient in any negotiation is leverage. Regardless of if you are selling freight service or software. Knowing the competition is critical, not only from a pricing standpoint, but also service and reliability. ed
QUOTE: Originally posted by bobwilcox You mentioned cost in your post. Only after you have determined what the customer is willing to pay for your service do you check your costs to determine if you are interested in the traffic.
QUOTE: Originally posted by toyomantrains How do trackage rights play into this in billing between carriers or is that different altogether?
Our community is FREE to join. To participate you must either login or register for an account.