A rate applicable to a specific commodity or group of commodities between defined origin and destination points, typically lower than the general freight rate. Commodity rates reflect the volume, regularity, and competitive characteristics of the traffic. They are published in commodity tariffs or established in contracts.
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.
A publicly filed schedule of rates, rules, and regulations applicable to railroad transportation services. Tariffs are filed with and accessible through the STB and must be applied consistently to all shippers who qualify. Under the Staggers Act, railroads may supplement tariff rates with confidential contracts.
A tariff provision that allows a shipper to stop a shipment in transit for processing, storage, or further manufacture, and then continue the shipment to final destination at a through rate. Common transit privileges include milling-in-transit for grain and fabrication-in-transit for steel. Transit privileges encourage shippers to use rail for value-added processing steps.