Recent trends, including the end of last month's reports, show freight carload traffic is on the rise, which is why Nexus knows that maintaining quality relationships with regional rail service providers is imperative to our customers‘ success and satisfaction. Our Pennsylvania warehouse (or NexusHub), located in Allentown has partnered with the Norfolk Southern Railroad (NS) since 1996, handling tens of thousands of rail cars for our customers serving varied industries.
Perhaps because of the increasing popularity of rail transportation, in June of 2013 an unforeseen amount of railcars arrived in Allentown, PA from across the country. The capacity overload was so great, one of our clients was facing a $10-12,000 demurrage charge, which Nexus was determined to deflect if at all possible. The clients were notified and Nexus began collaborations with the NS Trainmaster to determine the best way to reduce the excess of rail cars. Careful planning resulted in designing a solution allowing Nexus to unload 50-75% more high cube rail cars each day. The innovative problem solving kept costs down for the locomotive and daily tracking successfully reduced the potential demurrage bill to $500, which is currently being evaluated for further consideration. In the end, our biggest win was not sidestepping the hefty demurrage charge, but keeping our commitment to providing the best customer service possible.
WHY OUR CUSTOMERS USE RAIL
Our supply chain customers who use rail services enjoy the following benefits:
- Lower shipping costs and opportunities for reduced handling costs
- Standardized shipping schedules and reverse logistics opportunities improve shipping reliability
- Its some of the greenest shipping available. Trains emit 73% less carbon dioxide than trucks, reducing your company’s carbon footprint significantly.
- Low-volume shippers can leverage Nexus’s unique capability of matching them up with other low-volume shippers combine freight shipping to the same region at a much lower cost than LTL shipping. This benefit becomes even greater when added to the reliability of freight schedules.