A reference rate used to evaluate the reasonableness of a proposed contract or tariff rate, derived from comparable market transactions or the railroad's own tariff rates. Benchmarks help shippers assess whether a negotiated rate is competitive. In STB proceedings, benchmark rates may be used in rate reasonableness analysis.
The charge per unit (typically per car, per ton, or per container) for transporting a commodity between specified origin and destination points. Rates may be published in tariffs or established through confidential contracts. Rate levels are influenced by distance, commodity, car type, volume, and competitive conditions.
A confidential rate negotiated between a railroad and a shipper under a transportation contract authorized by the Staggers Rail Act. Contract rates are not publicly filed and may include volume commitments, service guarantees, and other terms. They are the primary pricing mechanism for large shippers and most intermodal traffic.
A rate filed in a railroad's public tariff and available to any qualifying shipper without negotiation. Published rates are less common than contract rates for large shippers but remain the default for smaller shippers and exempt traffic. They provide price transparency but less flexibility than contracts.
The process by which a shipper and railroad negotiate the terms of a transportation contract, including rates, volume commitments, service standards, and car supply provisions. Effective negotiation requires understanding market alternatives, the railroad's cost structure, and the shipper's volume and service needs. The Staggers Act enables these confidential bilateral agreements.