
Smaller shippers are getting a break on prices from railroads like Union Pacific and BNSF as the companies try to attract customers amid weak demand. Ari Ashe reports for Journal of Commerce:
Domestic intermodal providers have lowered contract rates through the end of the year for smaller shippers, according to rate documents obtained by the Journal of Commerce, as they look to attract business to rail amid a weak demand environment.
Union Pacific Railroad and COFC Logistics, a wholesaler for BNSF Railway, have updated contractual rates for low-volume shippers, known as the aggregate rates, essentially ripping up the prices that were established in January and February. UP slashed rates 3.5% across more than 200 lanes in the US for the balance of 2023, while COFC cut rates 5% on average across 32 lanes.
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