On Track for Major Savings: How RSI Logistics Helps Rail Shippers
Using a multi-faceted approach that involves data analytics and seamless communication, RSI Logistics secured 30% in savings for its clients through successful demurrage disputes.
The Provider
RSI Logistics, a TrinityRail® company, is dedicated to improving the effectiveness of freight shippers’ rail logistics. Through their range of solutions, including rail management software, logistics services, and rail rate analysis software, they make rail shipping simple, efficient, and cost-effective.
The Challenge
Though the Class 1 railroads provide credits for loading, unloading, or missed switches, railroad failures impact crews, capacity, and storage. These effects can often snowball into more than a day or two’s worth of credit. Failed service throughout the month, missed switches, car bunching, inaccurate ETAs, incorrect fleet sizing, and other factors exacerbate demurrage charges.
Navigating the complexities of rail demurrage—the charge imposed on shippers or consignees for holding a railcar within a terminal beyond the allotted free time—can be a time-consuming and costly affair for businesses reliant on rail transportation.
However, with insight, diligence, and precision, RSI Logistics secured 30% in savings for its clients through successful demurrage disputes.
RSI Logistics’ comprehensive rail logistics services includes demurrage management, and this success story exemplifies the importance of expertise in rail logistics, as well as the significance of powerful data analytics and dedicated teamwork in driving success.
Demurrage charges are often seen as an inevitable cost of doing business in the rail freight industry. Yet, for three of RSI’s clients, these fees had ballooned to exorbitant levels that threatened to disrupt their financial performance.
The Strategy
The cornerstone of RSI’s success lies in its systematic approach to disputing demurrage, which involves two complementary elements: sophisticated data analytics and seamless communication.
RSI Supplied Data: RSI Logistics’ rail management solution Rail Command® includes a detailed Demurrage Summary & Detail Report and was instrumental in highlighting inaccuracies in demurrage billing. By analyzing Car Location Messages (CLMs) and the client’s Demurrage Rules, RSI had a clear vision of legitimate charges versus disputable ones.
Manual Reporting: By manually maintaining detailed reports such as an Invoice Tracker, Total Demurrage, and Switch Performance Report, RSI maintained a granular view of every facet of the demurrage process. These documents served as a critical cross-reference that bolstered the data gleaned from technology-driven tools.
Railroad Demurrage Tools: The Class 1 Carriers each have a Demurrage Tool, which was key in dissecting the charge breakdown by car, including placement, order, and CP dates. It was also an efficient platform for submitting disputes, offering a direct communication line with the carriers.
Charge Order Vigilance: Monitoring charge orders’ start and end dates across both RSI Logistics and the carrier tools prevented overlooks and ensured billing accuracy.
Proactive Site Manager Interaction: Dialogue with the on-site manager ensured that operational setbacks, such as missed or incomplete switches and bunching, were promptly addressed and factored into demurrage claims.
Monthly Service Surveillance: Holistically monitoring services across the month allowed for early detection of systemic issues and trend identification, feeding into a preventative strategy against undue demurrage charges.
Car Bunching Scrutiny: Identifying and tracking car bunching instances through an integrated analysis of RSI data and Carrier data provided tangible evidence to support demurrage disputes.
The Outcome
RSI’s multi-faceted approach culminated in significant financial reprieve for its clients. By marrying the rigorous application of data with human expertise and strategic communication, approximately 30% of demurrage charges were successfully reclaimed.