Best Tips To Negotiate Rail Freight Rates

For shipping purpose Logistic companies use airways, road line, marine and railway. For more heavy goods, mostly courier companies prefer to deliver the goods by rail or through marine medium. But the freight charge of railway is more as compared to other delivery medium. To help the sipping companies here, we are discussing some tips through which they can reduce somewhat rail freight rates.

If your destination courierpoint is within your country then you can easily deliver the goods through rail road. If you want to negotiate the rail freight cost then first you have to understand the current market strategy and grab the opportunities for your traffic.

1. Try to Reduce the Rail Freight Cost

Dear shippers if you want to decrease the transportation cost then you must try to reduce the cost by convincing the person concern with courier charge in rail department. Maximum shippers feel fear to try for reducing the cost cause of railroads’ domination power over their business. So, don’t fear at all. It cost nothing to try. Sometime you also can success in convincing.

2. Describe and Make Understand the Need a Better Rate Structure

Logistic Companies!! You can easily reduce the rail freight cost if you can able to explain what is the need of a better rate structure? How can affect your shipping company business due to cost reduction? Where are the areas you are investing the capital?

3. Discuss Your Entire Business Rate Structure

When you are thinking to negotiate the freight cost, it is advisable that don’t negotiate single movements. Discuss the entire business rate structure to achieve a big bash from your business which boosts your logistic business more effective.

4. Understand your Competitor’s Business Strategy

Find out the location where your competitor’s business is expanded. Because your competitors can help you at the time of doing negotiation. Because if your competitors are present near to your shipment locations then you can convince them to ship your goods and can convince them to swap the shipments with your company.

For example: Suppose you are from Paris and your competitor is located at Jersey. If you want parcel delivery to Jersey and vice-versa then contact to your competitors and try to convince to ship your parcel by saying that you also ship their goods at Paris at any moment.

5. Understand your Business Basics

It is very important to observe the current Look at the competitive rail situation for all your transporting locations, and find out substitute logistics, purchasing, or production options existence.