Rail vs. Truck: Why Rail is the Smarter, More Cost-Effective Choice for Your Supply Chain
Rail vs Truck: Why Rail is the Smarter, More Cost-Effective Choice for Your Supply Chain
In today’s logistics landscape, efficiency and cost control are more critical than ever. With rising fuel prices, driver shortages, and increasing regulatory pressures, businesses are seeking reliable cost-effective transportation solutions.
Some shippers are experiencing difficulty getting trucks to load, and truck rates in some regions have doubled. If your company is relying on long-haul trucking, it’s time to assess your transportation strategy. Rail transportation offers significant cost savings, improved efficiency, and a more sustainable supply chain solution.
The Cost Advantage of Rail Over Trucking
The High Costs of Trucking
•Fuel Prices: Diesel costs remain volatile, but rail transport is far more fuel-efficient.
•Driver Shortages & Labor Costs: A growing driver shortage is pushing wages higher, increasing operating costs.
•Congestion & Tolls: As highways become more congested, delays and toll fees add unexpected costs to trucking.
Why Rail is the More Cost-Effective Choice
•Fuel Efficiency: Rail can move one ton of freight nearly 500 miles on a single gallon of fuel— for bulk liquid, it takes roughly 3.5 semi-trucks to fill 1 rail car.
•Lower Per-Ton Costs: Moving high-volume shipments over long distances via rail significantly reduces transportation costs per ton.
•Less Labor Costs: A single train can carry as much freight as several hundred trucks, dramatically reducing labor costs.
•Minimal Highway Congestion & Delays: Trains operate on dedicated tracks, eliminating congestion-related slowdowns and costs.
How Highroad Consulting’s VIEWPOINT™ Model Helps You Benchmark & Optimize Rail Rates
Switching to rail or optimizing your current rail strategy requires data-driven decision-making. That’s where our VIEWPOINT™ model comes in.
VIEWPOINT™
is an
analytical process designed to help shippers:
✔ Benchmark Rail Rates: Understand how your rates compare rates paid by your direct competitors.
✔ Identify Leverage Points: Pinpoint strategic opportunities to negotiate better rail rates, and strengthen your negotiating power.
✔ Strengthen Competitive Positioning: Analyze your rail and trucking costs on a per ton-mile basis and develop a market-driven strategy to enhance your company’s competitive position in current lanes and to enter new markets.
✔ Develop Actionable Rail & Carrier Strategies: We work with you to ensure your transportation costs align with your competitive goals.
Optimizing Your Supply Chain Starts Now
If your business is concerned about rising transportation costs, let’s talk about how rail can be a cost-saving alternative to trucking. With our VIEWPOINT™ model, you’ll have the insights needed to make smarter, more competitive transportation decisions.
🚆Are you making the most of it? Contact us today to learn how
VIEWPOINT™
can help you optimize your rates.
Call(219) 838-3800
by May 31st, 2025, for a
FREE
one (1) hour consultation.
Click
here to learn more about what Highroad Consulting has to offer.
